With a gross domestic product (GDP) expansion of 5.5% in 2012, according the central bank, and a labour market close to full employment, Chile’s economy has been enviable even by Latin American standards. But the country is not immune to external economic issues, and its currency is starting to feel the effects of quantitative easing in the developed world. Talks of ‘currency wars’ from a number of countries were echoed by Chilean finance minister Felipe Larrain at the World Economic Forum’s annual meeting in Davos this year, where he said he would support the central bank’s actions to ease pressure on the peso.
In an interview with The Banker in Santiago, Chile's central bank governor Rodrigo Vergara says the institution is open to various options in this respect, but he underlines the importance of central banks retaining their independence – in both Chile and elsewhere.
