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Boric blames external factors and uncertainty about the new Constitution for the historic high in the dollar

The president of Chile, Gabriel Boric, attributed this Wednesday (6th) the rise of the dollar – which for the first time reached the price of one thousand Chilean pesos – to external factors and the “uncertainty” that surrounds the country due to to the possible change of Constitution.

“(The rise of the dollar) is extremely worrying. There are different causes: the fall in the price of copper, on the one hand. Now, there are also internal factors, and uncertainty undoubtedly contributes to this”, said the president at a press conference.

“It is important that the different political actors give signs of certainty”, added the president, on the same day that the electoral campaign for the September 4th constituent referendum began.

The main political parties and civil society organizations are defining their positions in relation to this consultation, in which Chileans will be forced to vote on whether they want to replace the current Constitution with a new one, which was finalized last week.

After a year of work, the progressive-leaning Constituent Assembly has written a new proposed Constitution that aims to expand social rights and leave behind the current one, inherited from the dictatorship of Augusto Pinochet (1973-1990) and reformed throughout democracy.

For months, polls showed the option to approve the new text as the winner, m But there is growing uncertainty and more and more polls point to a greater public preference for maintaining the current Constitution.

In addition to the national context, Boric blamed the rise in the dollar for the poor performance of copper, a derivative the “recession prospects in Europe and the United States” and China’s decision to keep several cities closed due to the Covid pandemic-19.

The dollar reached 1,000 Chilean pesos this Wednesday and closed the day at 965 pesos, a new record amid a global strengthening of the currency and the decline in the value of the red metal, the main country’s exports.

According to the London Metal Exchange, copper – essential in energy transmission – dropped to US$ 3,19 the pound this Wednesday, its lowest value in at least a year and a half.

Mining, which represents about % of the national Gross Domestic Product (GDP), played a key role in the recovery the country’s post-pandemic economy for months.

After a historic GDP recovery of 11,7% in 2021 ), the biggest expansion in four decades, the Chilean economy has shown signs of cooling down and registered an unprecedented inflation since the years 90.

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