Dollar in Uruguay: how the exchange rate closed today, May 22

Dollar in Uruguay: how the exchange rate closed today, May 22
Dollar in Uruguay: how the exchange rate closed today, May 22

The Uruguayan currency did not register as many changes in its value against the dollar unlike in recent days (Illustrative Image Infobae)

The US currency remained stable against the Uruguayan peso at the market close on Wednesday, May 22. The Uruguayan currency showed strength in the face of the strengthening of the greenback in international markets during the course of the day.

The dollar has strengthened in recent days due to the publication of the Consumer Price Index (CPI) reports, which specified that one of the inflation indices fell during the month of April.

In the last session the American dollar was negotiated at closing 38.28 Uruguayan pesos on averageso it represented a change of 0.02% when compared to the previous session’s figure of 38.28 pesos.

In the last seven days, the American dollar registers an increase of 0.47% and in interannual terms it still maintains an increase of 2.64%.

Analyzing this data with that of past days, it added two consecutive sessions on the rise. The volatility figure was higher than that accumulated in the last year, so it is going through a phase of instability.

The officials that make up the United States Federal Reserve (Fed) have taken a patient stance in the face of the latest inflation rates and some have shared their position of making decisions regarding interest rate cuts with caution, as they hope that new data is published to serve as a basis for making a decision.

The Government of Uruguay plans to resume economic growth by 2024 with the export of goods and services as a driver of these positive effects after registering a drop in the Gross Domestic Product (GDP) in the first two semesters of the year.

In the first week of the year, the dollar started in positive territory and remained almost in the same range as at the end of 2023, according to data from the Central Bank of Uruguay (BCU). Economists predict a 2024 marked by the weakness of the dollar in the face of cuts by the United States Federal Reserve (Fed).

The peso is the currency in official circulation in Uruguay since 1993 and replaced the old pesos after the country suffered a period of high inflation.

It was as of October 29, 1991 when the Central Bank of Uruguay was authorized to issue new banknotes to remove the old Uruguayan pesos that were equivalent to 1,000 new pesos. The currency began to circulate until March 1993.

In the 1990s, a new mechanism was introduced to more accurately predict the value of the peso with respect to the dollar, establishing a floating band method.

Later, in 2002 with Jorge Batlle as president, Uruguay experienced a financial crisis due to capital flight, so it was difficult to control the exchange market until months later when it was decided to opt for the independent floating system, which is the one that has been maintained today.

After the maxidevaluation of 2002, a period of currency appreciation. It should be noted that the coins use animals and national figures on the reverse as a design.

Economically, Uruguay stands out in Latin America for its high per capita income, its low levels of inequality and poverty, with 60% of its population being middle class.

Among the challenges facing Uruguay are the improve your competitiveness and long-term growth, incorporate women into economic activities and transform education.

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