Commodity currencies are having tough time throughout globe as Commodity glutton China slows down and rest of the world still recovering from 2008/09 crisis.
To add to the pain stronger dollar is adding to the downside pressure on commodities.
Chile is world's largest copper producer. In 2014, Chile produced almost one third of world's copper.
That makes it very vulnerable to lower prices.
Copper is currently trading at $2.5/pound, down more than 20% in last 12 months.
Chile's exports have dropped more than 25% after peaking in December 2010. In June exports were $5.72 billion compared to $7.76 billion in December, 2010.
Chile's currency Peso (CLP) is currently trading at 648 against dollar, down 15% in last 12 months and it is likely to drop further.
Chile faces risk of higher inflation if copper drops further and CLP follows suit.
Drop in copper has started taking its toll on Forex Reserve, $38.17 billion from its peak in $42.3 billion in September 2013.


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