Significance: For the past two decades, Uruguay's economy has been driven by exports so a weak peso/dollar exchange rate normally affects exporters as their products lose price competitivity in international markets. At the beginning of the year Uruguay's central bank (BCU), like many other Latin American counterparts, adopted monetary measures aimed at propping up the weakening dollar in an attempt to protect its export market share. However, as international food and fuel prices continue to rise, inflation has become the main concern for Uruguay's left-wing Frente Amplio (FA) ruling coalition, so the exchange rate has to take a back seat behind controlling inflation.
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