APPENDIX III. Statement On Consultations With The Government Of Chile

International Monetary Fund
Published Date:
September 1948
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(Press Release of January 31, 1948)

The International Monetary Fund today announced the conclusion of consultations with the Government of Chile on matters connected with that country’s foreign exchange budget for 1948.

As a result of these consultations Chile has proposed, and the Fund has agreed upon, a progressive program to be undertaken by Chile over the course of this year. This program is aimed at simplification of the existing multiple exchange rate system of that country, and it is anticipated that, from the beginning of next year, the bulk of Chile’s foreign exchange transactions will take place within the revised system at a new rate of exchange to be established at a more realistic level.

Among the immediate steps to be taken is to eliminate the practice of private compensations, by which Chilean importers and exporters must directly match their foreign exchange demands and supply, and replace it by the orderly handling of these transactions through commercial banks. Chile has already taken steps towards balancing her budget and imposing selective restraints on bank credit which will help to arrive at the internal financial stability necessary to achieve and maintain external stability.

The Fund welcomes Chile’s cooperation and support of the objectives of the Fund, as evidenced by this consultation. The Fund will work closely with Chile to assist her in meeting her present exchange difficulty along the lines which have now been mutually agreed upon.

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