Back

LatinNews Daily - 08 April 2011

Dollar reaches new low in Uruguay

Development: On 7 April, the average inter-bank US dollar exchange rate in Uruguay hit Ur$ 18.993, a nine-year low.
 
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.
 
Key points:

End of preview - This article contains approximately 399 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

LatinNews
Intelligence Research Ltd.
167-169 Great Portland Street,
5th floor,
London, W1W 5PF - UK
Phone : +44 (0) 203 695 2790
Contact
You may contact us via our online contact form
Copyright © 2022 Intelligence Research Ltd. All rights reserved.