Chile Central Bank Won't Rule Out Increasing Foreign Exchange Reserves

The monetary authority bases its decisions on the peso's real exchange rate, which is the nominal rate corrected for prices.
De Gregorio noted that the real exchange rate is currently about 5%-7% deviated from its trend rate.
The central bank added that agricultural exporters were suffering the biggest damages from the strong peso as 70% of their products were bound for the U.S. and the European Union.
The non-agricultural exporters that are sending their products to Asia are faring better as the peso hasn't firmed as much against Asian currencies as it has against the dollar and the euro.
In a recent speech, De Gregorio said that in the last six months, the peso had firmed 3% versus the euro and 12% against the dollar.
-By Carolina Pica, Dow Jones Newswires; 56-2-715-8919; carolina.pica@dowjones.com