Finance Minister from Chile, Colombia, Mexico and Peru met in Lima to discuss the options available to deal with the effects of their respective currencies fast appreciation. Exporters in the four countries have pressured the government to act to curb the rise of the home currency, but it might be beyond the means of the local central banks.
The Minister of Chile did not discount the use measures such as currency controls, but he did label them a “last resort”
With large capital inflows as the result of quantitative easing programs in the U.S., Europe and Japan emerging market around the world are sizing different options to meet the current challenge. From Mexico to Thailand the options are not guaranteed to work as the world’s largest economies struggle to return to growth.