The US dollar jumps 2% in Chile: main export falls sharply

The dollar jumps 2% in Chile: main export falls sharply

The US dollar closed at an average of 985.40 Chilean pesos, representing a change of 2.03% compared to the 965.77 pesos from the previous session.

Regarding the variations of this day compared to previous days, there was a change in the direction from the previous data, which showed a decrease of 0.13%, indicating a lack of stability in recent times.

After a year of economic stagnation, Chile could experience a rebound in 2024 and 2025, according to estimates from the Organization for Economic Cooperation and Development (OECD).

It predicts that the outlook will improve due to the rise in real wages resulting from the decrease in inflation and the fall in interest rates, allowing Chileans to increase their consumption. It indicates that production will increase by 1.8% and 2.5% in 2025.

The outlook is positive as business confidence has improved, as well as the demand for minerals, which will support exports. It estimates that inflation will reach the central bank’s target in the second half of 2024, after which it will decrease at a slower pace.

Copper for three-month delivery on the London Metal Exchange (LME) was down 0.8% at $8,466.50 per metric ton.

The price of copper holds significant importance in Chile due to the country’s heavy reliance on copper exports, which represent a substantial portion of its GDP and government revenue. Chile is the world’s largest producer of copper, and its economy is deeply interconnected with fluctuations in copper prices.

The price of copper directly influences Chile’s economic performance, investment decisions, government budgeting, and overall economic stability.

As a result, changes in the price of copper can have profound effects on Chile’s economy, employment levels, public infrastructure projects, and social programs, making it a crucial indicator of the country’s economic health and prosperity.

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ABOUT THE AUTHOR See More
Gabriel Micillo
Gabriel is a certified public accountant graduated from UNNE (National University of the Northeast, Argentina) and a software developer, currently pursuing a Master's degree in Finance and Economics. With nearly 8 years of experience working for accounting firms and brokerage firms. Concurrently, he has produced economic and financial reports on the current state of regional economies for the clients of the establishments where he has worked. Additionally, he assisted colleagues like Ignacio Teson in the drafting and editing of articles on similar topics in English language.
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