A sharp drop in Stock Exchange prices on the Chilean market and panic withdrawals from banks by many small savers was an indication of the fear of an economy crisis following the Presidential Election held there on September 4.
GV PAN queues inside bank
CU stock markets exchange board being marked
GV & SV stock market scenes (3 shots)
CU International Vaccination Office sign
GV crowd outside vaccination office
SV interior, Government Passport office
SV & CU passport being checked (4 shots)
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Background: A sharp drop in Stock Exchange prices on the Chilean market and panic withdrawals from banks by many small savers was an indication of the fear of an economy crisis following the Presidential Election held there on September 4. The Poll victory to Salvador Allende, a strong-line Marxist.
Despite a general feeling of confidence in the future of Chilean economy on the international finance scene, Stock Exchange prices in Santiago recently dropped by 30%, and then the market became virtually inactive.
The Government imposed a 50% tax on foreign currency bought by Chileans. The move followed rumours of a flight of capital from the country in the wake of the presidential Polls victory of Salvador Allende.
Finance Minister Andres Zaldivar declined to give details of the increase in money circulation following a sharp rise in withdrawals from banks. He told pressmen the measures were being taken to meet the credit and payments situation. He did not elaborate further.
The 50% currency tax is in addition to regulations already in force restricting buying by travellers to 360 dollars for journeys within Latin America, and 720 dollars to the rest of the world.
The sudden demands on the banks came after Senor Allende said he would nationalise them. The minor panic was quashed, for the time being at least, when the Central bank gave the public its assurances.
Although there is no concrete reason for anyone in Chile at the present time to believe the economy is in jeopardy, there have been queues at both the Government Passport Office and International Vaccination Office. It is a requirement that anyone leaving Chile must either be vaccinated or show a valid vaccination certificate.