Chile’s finance minister calls for return to ‘normality’ as peso slides

SANTIAGO, (Reuters) - Chile’s finance minister warned yesterday of the “grave consequences” for the nation’s economy of three weeks of often violent unrest, after the peso slid 4% to hit a historic low against the dollar.

Ignacio Briones said the weakening of the peso was a “sign of worry” that he and his colleagues were watching very carefully.

He called on Chileans to help restore “normality” so that businesses could return to proper functioning and people could return to work after weeks of strikes, marches and damage to property and public transport that he has estimated cost the economy $3 billion.

“The peaceful marches have made their point and that message is reflected in the measures that the government and the opposition have taken,” he told journalists in Santiago. “All our actions have consequences and they are having grave consequences that are now being seen in the economy and particularly on entrepreneurs and in the most vulnerable sectors.”

President Sebastian Pinera, speaking at an evening news conference in Santiago, condemned new clashes between protesters and police on Tuesday night in Santiago and other parts of the country and vowed that those responsible would be prosecuted under the strict state security law that allows for tougher penalties.

“The grave situation of violence and delinquency severely threatens our democracy, our state of law and above all, the rights of all Chileans and especially of the most vulnerable,” he said.

Pinera appealed to citizens to sign up to three “national accords” to restore security, promote a more equal society and develop a new constitution to replace one crafted during the 1973-1990 Augusto Pinochet dictatorship.

The country’s currency plunged to more than 800 pesos per dollar, down more than 10% since mid-October, by midday on Tuesday as state workers and some unionized miners in Chile announced a nationwide strike, saying they were not yet satisfied following the government’s decision to rewrite the constitution.