UPDATE 1-Chile ups pension fund foreign investment limit

* Central bank move follows sharp peso appreciation

* Gradual rise from 60 to 80 pct to begin in December

* President said last month eyeing capital account
(Updates with adjustment schedule, peso movement)

SANTIAGO, Nov 4 (BestGrowthStock) – Chile’s central bank said on
Thursday it would gradually raise foreign investment limits for
pension funds to 80 percent from 60 percent as it seeks to
counter the recent sharp appreciation of the peso (CLP=CL: ).

The bank said the limits would begin rising in December,
with three successive increases coming every three months.

The peso was broadly stable after the announcement at
479.90/480.40, already up 1.9 percent in Thursday trading
following the U.S. Federal Reserve’s announcement of new
monetary stimulus after the market closed on Wednesday.

The currency has soared nearly 14 percent since the end of
June, prompting intervention warnings from Chilean authorities
concerned about the competitiveness of local exporters.

President Sebastian Pinera said last month that he is not
planning capital controls, and he would like to stem the peso’s
appreciation by encouraging more Chilean investment abroad.

The central bank has said it was weighing intervention.
(Reporting by Antonio de la Jara; Writing by Simon Gardner and
Brad Haynes, Editing by W Simon )

UPDATE 1-Chile ups pension fund foreign investment limit