SANTIAGO Aug 23 The Pacific Alliance countries,
made up of Chile, Colombia, Mexico and Peru, are seeking to
avoid excessive volatility in their currencies, Peruvian finance
minister Luis Miguel Castilla said on Friday during a meeting of
the bloc in Santiago.
Emerging market currencies have come under heavy selling
pressure recently following signals from the U.S. Federal
Reserve that it might dial back its bond-buying stimulus
"What we all want to avoid is excessive volatility and that
I think is something we have in common," said Castilla, flanked
by Chile's finance minister, Felipe Larrain, Colombian finance
minister Mauricio Cardenas and Mexico's finance minister, Luis
Investors have been lured by an economic boom in much of
Latin America as opposed to the developed world's largely tepid
The capital flows have strengthened many currencies in the
region, but have also caused headaches for exporters in
commodities rich Latin America.
Expectations that the U.S. Federal Reserve might soon wind
down stimulus measures have battered many emerging currencies
recently. The Peruvian sol, for instance, has depreciated more
than 10 percent this year.
Cardenas said on Friday that a weaker Colombian peso was not
a problem for the Andean country.
The Pacific Alliance, formed last year, aims to integrate
free markets in trade, energy and infrastructure, and bolster
ties with key trading partner Asia.