Macroeconomic Forecast Chile

BMI View: Despite falling slightly from end-2011 levels, Chile's foreign reserves have held up well in Q112, reaching US$39.6bn in March. However, with our Commodities team forecasting a drop off in copper prices in H212, we expect a slight deterioration in the country's terms of trade over the coming months, which is likely to put some downside pressure on the reserve base. As a result, we stick to our end-2012 US$35.0bn reserve forecast.

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