The Minister of Finance, Mario Marcel, during a new edition of Gobierno Informa, highlighted the importance of Chile in copper mining projects worldwide. According to Marcel, the country leads in the number of projects in this area. The minister also answered questions about the rise in the price of copper and how this affects the value of the dollar. Marcel explained that the sustained increase in copper impacts the value of the dollar and brings benefits to the population, reducing costs and inflationary pressures.
Reasons for the rise in the price of copper
Minister Marcel explained that the reasons behind the rise in copper are related to market conditions. On the one hand, there is solid demand, both immediate and medium-term, due to the reactivation of economies and the development of electromobility. On the other hand, the supply is inelastic. This diagnosis indicates that the price increase will be maintained despite short-term volatility, according to the report of the Chilean Copper Commission for 2024 and 2025.
“The report delivered by the Chilean Copper Commission with its new projections for 2024 and 2025 confirms this”explained Minister Marcel.
Benefits for the country
The better price of copper brings multiple benefits for Chile. According to Minister Marcel, this translates into greater activity, investment incentives, employment and greater tax revenues. Additionally, the value of the dollar decreases, reducing the cost of imported goods and inflationary pressures. In relation to this, the price of fuel will also be affected, with an upcoming drop of $30 per liter in gasoline, as announced by the authority.
“This is also reflected in the exchange rate, because the higher price of copper increases the country’s foreign currency income and that values the local currency against the dollar in particular”highlighted Minister Marcel.
Finally, Minister Marcel emphasized that this copper price trend will continue for a few months, reversing the alarm previously generated and benefiting citizens.
“So this thing that at some point generated alarm, which makes people feel greater inflation, is now going to be reversed for the benefit of citizens”.
