In another big blow to the Chilean economy, the price of copper has hit an all-time low, now almost down to 60 percent. With the chemical element's importance to the country's economy, it is said that it is highly dependent on whatever happens to copper.

Seeking Alpha said copper has actually been on the decline for the past four years since it recorded highs in 2011.

"This decline has even accelerated the last six months with prices down by a third," added the same report.

As an effect, Bloomberg said Chile's peso slumped and instigated talks that the central bank could intervene in the market.

The same report said the central bank "reserves the right to act in the foreign-exchange market" when there is concern about the effect of the currency to a possible local inflation.

It noted that the currency slid to 0.6 percent to 715.11 per dollar when trading closed on Monday. This is reportedly the weakest of the Chilean peso since 2003.

"We continue to see copper hitting the peso really hard. At this rate it could easily weaken past 720 per dollar, and we have to see what the central bank says then. It's certainly not comfortable with the effect on inflation," noted EuroAmerica head of currency trading Ronald Volpi.

Aside from this, the decline in the price of copper could also mean that it would bounce back and increase soon, as per Seeking Alpha.

It added that Chile is the biggest producer and exporter of copper contributing about 5.8 million metric tons to the global production last year.

"Copper makes up almost half of Chile's total exports, making its economy highly dependent on whatever happens to copper. If copper prices go down as they have been in recent times, Chile is bound to feel the effects," added Seeking Alpha.

CBC News said the copper crisis effect is now felt worldwide, even if production has increased. It added that the slowdown in China caused less demand for the metal, not only in the country but also in other countries.

"A lot of it does have to do with China. China demand fell because construction is down," said commodities analyst Dina Ignjatovic in the CBC News report.

Meanwhile in Canada, Ignjatovic said copper exports in the country reached $6 billion in 2014 with the production growing by 10 percent in 2014. This was attributed to the investment in new mines since 2011.

"Prices have fallen, but so have the cost curves," Ignjatovic added mentioning lower fuel prices and exchange rate.