The U.S. dollar in Uruguay closed at 39.88 pesos, up 1.13% from 39.43 the previous day, according to Dow Jones data.
On a weekly basis, the greenback gained 0.05%, although year-over-year it remains down 5.2%. This result marks three consecutive days of positive activity. Volatility in recent days has exceeded the yearly average, indicating more active movement in the foreign exchange market.
Economic projections in Uruguay
The year 2024 was marked by a sustained recovery of the Uruguayan economy. Factors such as stability, tax incentives, and logistics infrastructure strengthened the country as a destination for regional investment, particularly from Argentina.
A report by the consulting firm CBRE indicates that the local logistics sector is dominated by a small group of developers , primarily owners of industrial parks. Occupancy is high in Montevideo and Canelones, where there is still room for expansion.
History of the Uruguayan peso and its relationship with the US dollar in Uruguay
The Uruguayan peso began circulating in 1993, following a process of replacing the old currency that was marked by high inflation. The Central Bank of Uruguay began issuing new banknotes in October 1991, establishing that one thousand old pesos were equivalent to one new peso.
During the 1990s, a system of floating bands against the dollar was implemented, seeking to more accurately predict the value of the national currency. However, the 2002 crisis, under President Jorge Batlle, led to capital flight and forced the adoption of the independent floating regime, which remains in place today.
Following the sharp devaluation that year, the Uruguayan peso experienced a period of appreciation. Since then, the relationship between the two currencies has continued to be an indicator of confidence and stability for markets and households.
Uruguay's challenges in the current economic scenario
Uruguay maintains outstanding levels in the region in terms of per capita income and low rates of poverty and inequality. According to recent studies, around 60% of the population is in the middle class. However, the main challenges include improving competitiveness, sustaining long-term growth, increasing female participation in the workforce, and transforming education.
In this context, the behavior of the US dollar in Uruguay is key to shaping public policies and private decisions. A prolonged rise can generate inflationary pressure and affect domestic consumption, while prolonged stability generally favors business planning.
Influence of the US dollar in Uruguay on daily life
The behavior of the US dollar in Uruguay isn't just measured in charts and financial statements. It also directly impacts daily life. When the currency rises, many Uruguayans feel the pressure when shopping: the price of products like yerba mate, bread, or milk can increase due to import or transportation costs. At the same time, sectors like construction and technology tend to quickly adjust their values in pesos whenever the dollar gains ground.
For those who work odd jobs or are trying to make ends meet, every movement of the dollar can become a challenge. Even bus fares or basic services are indirectly affected when energy or logistics costs rise. Therefore, it's no surprise that the dollar's evolution is closely followed by the general population, not just by specialists.
Tourism and the US dollar in Uruguay
Another sensitive sector is tourism. When the US dollar strengthens against the peso in Uruguay , visiting the country becomes more affordable for foreign tourists, especially those arriving from Argentina and Brazil. However, for Uruguayans planning to travel abroad, the rise in the greenback means higher spending on tickets, accommodations, and shopping.
Tour operators point out that the dollar's exchange rate tends to determine the high and low seasons, influencing visitor arrivals to destinations such as Punta del Este, Colonia, and Montevideo. At the same time, small-scale entrepreneurs in the restaurant and hotel sectors adjust their prices based on the exchange rate to maintain profitability.
Future prospects
Official projections indicate that the US dollar in Uruguay will maintain a degree of stability in the coming months, although influenced by international factors. The US Federal Reserve and commodity prices are key factors that could tip the balance.
Experts consulted agree that the Central Bank of Uruguay's monetary policy will be decisive in maintaining the balance. Careful management of the exchange rate will allow for continued attraction of foreign investment without significantly affecting household purchasing power.
Ultimately, the relationship between the dollar and the Uruguayan peso will continue to be a central topic on the economic agenda. Its influence ranges from the macroeconomy to everyday purchases at the local grocery store, demonstrating the importance of closely monitoring its evolution.
