Although Chile is viewed by some market observers as the most advanced and open South American economy and it is undeniably home to Latin America’s highest sovereign credit rating (AA-), there is also no denying the country’s dependence on copper exports as a driver of government revenue.

“Here again, Chile’s monetary policy/currency stability score exceeds Mexico’s. The Mexican peso, like the rand, is considered undervalued – and has been gaining,” reports Euromoney. “ECR data underscore the comparatively favourable prospects of Chile relative to Mexico, which have been improving on the back of higher Chinese and US demand supporting copper prices.”

The peso is an important part of the Mexico investment thesis because exports account for over a third of GDP in Latin America’s second-largest economy. So are oil prices because Mexico is one of the largest non-OPEC producers in Latin America.

For more information on the Mexican markets, visit our Mexico category.

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