Chile Not Planning Capital Controls to Weaken Peso

Chile has no plans to implement capital controls to curb gains by the peso, which has strengthened more than any Latin American currency in the past three months, Finance Minister Felipe Larrain said.

Larrain, in an interview, said Chile has had “mixed” results when in the 1990s it used capital controls to stem the appreciation of the peso. He said that curbing public spending growth is “one of the best ways” to prevent the currency from further strengthening against the dollar.