LatinNews Daily - 15 May 2018

Uruguay: The president of Uruguay’s central bank (BCU), Mario Bergara, has said that the BCU is unconcerned by the sharp depreciation of the Uruguayan peso against the US dollar in recent days, and argued that this is not yet producing significant inflationary pressures in Uruguay. Bergara’s comments come as the value of the Uruguayan peso has fallen by 7.4% in May to Ur$30.55/US$1, as part of the more general appreciation of the US dollar against emerging market currencies. They also come amid rising concern in neighbouring Argentina that the depreciation of the Argentine peso against the US dollar has sparked a run on the peso there. “The exchange rate does not bother us, it is still at a reasonable level”, Bergara said, noting that the BCU would only intervene in the local currency market to smooth out any volatility. However, Bergara admitted that the situation in Argentina is partly fuelling the appreciation of the US dollar in Uruguay. “The increase in the exchange rage in Uruguay is 80% explained by what is going on in the world and 20% by what is going on in Argentina”, Bergara said.

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