The euro in Uruguay closed at an average of 46.72 pesos last day, up 0.97% from 46.27 the previous day, according to Dow Jones.
In the weekly balance, the euro registered a 1.64% increase. In the year-on-year comparison, it has accumulated a 6.37% rise, confirming a sustained trend over the past few months. With this movement, it has completed three consecutive sessions with positive figures. Recent volatility has been above the average for the last twelve months, demonstrating a more dynamic performance than the general trend in the foreign exchange market.
Euro exchange rate in Uruguay and its economic influence
The euro's performance in Uruguay is closely followed by both local investors and consumers. Its evolution has a direct impact on the prices of imported products , especially consumer goods such as electronics, automobiles, and food imported from Europe.
For those who work odd jobs or are trying to make ends meet, the rising value of the euro can be a significant blow to their wallets, as many import costs are passed on to the end consumer. At the same time, for exporting companies that operate with euro contracts, the rise in the currency can represent a benefit in terms of profitability.
Tourism is another sector sensitive to these fluctuations. When the euro appreciates against the peso, traveling to Europe becomes more expensive for Uruguayans, while visiting Uruguay becomes more affordable for Europeans. This impacts tourist arrivals in the country and business activity in destinations like Punta del Este and Colonia.
Economic projections and the role of the logistics sector
2024 was a year of recovery for the Uruguayan economy after a period of difficulties. Factors such as economic stability, tax benefits, and logistics infrastructure consolidated Uruguay as an attractive destination for regional investment. Argentine, Brazilian, and European companies found the country a safe platform for their operations.
According to a study by the consulting firm CBRE, the Uruguayan logistics sector is concentrated in a small group of developers, primarily owners of industrial parks. This scenario generates high occupancy rates in Montevideo and Canelones, where there are still opportunities for expansion. The relationship with foreign currencies, such as the euro in Uruguay , is a key indicator for measuring the profitability of these projects.
History of the Uruguayan peso and its relationship with the euro in Uruguay
The Uruguayan peso began circulating in 1993, replacing the old banknotes after a period of strong inflation. The Central Bank of Uruguay was authorized in October 1991 to issue the new currency, which was equivalent to one thousand old pesos. Actual circulation began in March 1993.
In the 1990s, a system of floating bands against the dollar was implemented, seeking greater predictability. However, the 2002 crisis, during Jorge Batlle's presidency, forced the adoption of an independent floating regime. This change marked the current direction of monetary policy, in which the relationship with currencies like the euro is becoming increasingly important in trade and investment flows.
Following the 2002 maxi-devaluation, the Uruguayan peso experienced a period of appreciation. Today, Uruguay stands out in Latin America for its high per capita income and low inequality. However, it faces significant challenges: improving competitiveness, sustaining long-term growth, increasing women's participation in the labor market, and transforming education.
Future prospects
euro in Uruguay is expected to maintain a degree of stability, influenced by the policies of the European Central Bank and movements in international markets. For households, this means that the price of imported goods may stabilize, while for productive sectors, it opens the door to more accurate planning of their operations.
The relationship between the Uruguayan peso and the euro will continue to be a key indicator of the national economic direction. Its impact is reflected in the money each family spends at the grocery store, in companies' investment decisions, and in economists' projections .
