Wednesday’s ETF To Watch: Chile Index Fund (ECH)
January 05, 2011 at 04:00 AM EST
One of the biggest stories of 2010 was the beginning of a currency war in which nations fought to maintain export competitiveness at all costs. Usually the preferred strategy of central bankers around the world has been to avoid the weakness in the dollar and ensuing strength in their own nation’s currency by buying up dollars and thereby making their exchange rate more favorable to exporting firms. This tactic has been especially popular in South America where a number of surging nations, including Colombia and Brazil, have sought to maintain export competitiveness by selling their home currency on the open market. While the long-term impact of these moves remains questionable, it hasn’t stopped others from joining the fray, including most recently, Chile. Late Monday, the Andean nation’s central bank announced a plan to weaken the peso against the dollar by making over $12 billion in dollar purchases a day through February [...] Click here to read the original article on ETFdb.com.