* Fed to pump more money into the US economy
* Chile FinMin says measure a 'worry'
* Emerging market currencies have strengthened
SANTIAGO, Dec 13 The Federal Reserve's promise
to pump more money into the U.S. economy is a "worry," as it can
further pressure cu rrencies in emerging na tions, C hile's Finance
Minister Felipe Larrain said on Thursday.
The Chilean peso and a raft of other currencies in
the developing world have strengthened due to historically low
interest rates and stimulus programs in the developed world.
The Fed, announcing a new round of monetary stimulus, took
the unprecedented step on Wednesday of indicating interest rates
would remain near zero until unemployment falls to at least 6.5
percent. [ID :nL1E8NC6N6]
"The continued aggressive quantitative easing is a source of
worry... for all the emerging countries that are faring well,
that are in process of growing dynamically and have fl oating
ex change rates," Larrain said.
He spoke during a press conference with International
Monetary Fund Managing Director Christine Lagarde and central
bank president Rodrigo Vergara after a meeting to discuss the
Emerging markets have blamed loose monetary policies in rich
nations for spurring destabilizing flows of hot money, and the
IMF is trying to forge a consensus on when it makes sense for
nations to resort to capital curbs. [ID :nL1E8N304O]
"Without a doubt we'd like the North American economy to be
doing better but the fact that we're getting additional
liquidity injections c an put pressure on the currencies of
countries that are doing well," he added.
Chile's peso has strengthened 8.62 percent this year against
the U.S. dollar. It ranks behind the Hungarian forint and the
Polish zloty as one of the strongest foreign currency performers
a g ainst the dollar among 152 currencies tracked by Reuters.
World No.1 copper producer Chile has lured investor interest
due to strong economic growth -- seen at 5.5 percent this year--
and interest rates at 5 percent since a surprise cut in January.