The Chilean treasury and central bank have been taking action to help fruit exporters hit by the plummeting rate of exchange of the US dollar.
The Chilean treasury has announced a bill to be hastened through parliament that will mean exporters are permitted to pay their taxes in dollars and so alleviate pressure on the peso. “By paying in dollars, there will be greater demand for dollars,” explained Chile’s treasury minister Andrés Velasco. “This will eventually have an effect on the price of the dollar and will support the competitiveness of our economy.”
The Chilean peso has already climbed 11 per cent in value against the US currency this year, 20 per cent in the last 12 months and 40 per cent over the past five years.
Velasco’s ministry has calculated that this new measure will potentially benefit 6,500 firms - a significant proportion of them fruit exporters.
And the Chilean central bank has also intervened to purchase $8 billion (worth £4.02bn), in an effort to bring stability. The move has been welcomed by both the Chilean exporters’ association, Asoex and producers’ federation Fedefruta.
“It is what we have been seeking for some time,” said Asoex president Ronald Bown. “Some exporters and producers will be left behind as they have not been able to sort their problems out in time, but for the benefit of the country, it was a decision we were expecting and we are hopeful that the exchange rate will allow us to develop harmoniously.”
Fedefruta president Rodrigo Echeverría said the decision by the central bank was “courageous”.
“We have received this news with happiness,” he said. “We were very worried and close to starting to plan for the 2008-09 season, but until this, we had received no positive signs. This has come through at the last minute.”
The dollar was worth 449 pesos this week having slumped below 440 pesos at the beginning of April. Exporters would like to see it exchanging at 500-600 pesos, for stability to return to their sector.
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