A gradual reversal in trade policy culminated in the military announcing import substitution as a failed experiment, lifting protectionist barriers and opening the economy to the world market. This new policy boosted some exports, but an overvalued currency meant certain imports were so cheap that local industry declined, and many exports were priced out of the market. The Ministry of Economy put an end to the exchange rate policy of previous governments. The currency underwent a 30% devaluation. In 1970, the "peso moneda nacional" (one of the longest-lived currencies in the region) was replaced by the "peso ley" [shortened form of "peso ley 18188"] (100 to 1).
A gradual reversal in trade policy culminated in the military announcing import substitution as a failed experiment lifting protectionist barriers and opening the economy to the world market This new policy boosted some exports but an overvalued currency meant certain imports were so cheap that local industry declined and many exports were priced out of the market The Ministry of Economy put an end to the exchange rate policy of previous governments The currency underwent a 30% devaluation In 1970 the "peso moneda nacional" (one of the longest-lived currencies in the region) was replaced by the "peso ley" [shortened form of "peso ley 18188"] (100 to 1)