Uruguayan peso
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The peso uruguayo (ISO 4217 code: UYU) is the official currency of Uruguay. It is subdivided into 100 centésimos.
History
Peso, 1840-1975
Following independence from Spain and Brazil, Uruguay at first used Argentinian currency. In 1840, the first issues were made of an independent currency. This was the peso, equal to the 8 Argentinian reales and subdivided into 100 centésimos.Nuevo Peso, 1975-1993
Following high inflation, the nuevo peso replaced the peso at a rate of 1000 pesos = 1 nuevo peso in November 1973. The nuevo peso was also subdivided into 100 centésimos. The ISO 4217 code for this currency was UYN.
Peso Uruguayo, 1993-
After further inflation, the peso uruguayo replaced the nuevo peso, again at a rate of 1000 to 1, on March 1, 1993.
Inflation
Uruguayans have become accustomed to the constant devaluation of their currency. Uruguayans refer to periods of real appreciation of the currency as atraso cambiario, which literally means that "the exchange rate is running late". As a consequence of the instability of the local currency, prices for most big-ticket items (real estate, cars and even executives' salaries) are denominated in US dollars.
During the military rule the peso was pegged to the dollar (actually it was a crawling peg). A table of the future value of the dollar was published daily by the government (called the tablita). In 1982 the currency was devalued ("the tablita was broken"), throwing thousands of companies and individuals into bankruptcy. In the 1990s a new mechanism to provide predictibilty was introduced, this time in the form of a sliding range, with a top and bottom margins, at which the government would intervene. In 2002, after a banking crisis and amid a huge budget deficit, the currency was again allowed to float, losing almost 50% of its value in a couple of weeks, and, again, throwing into bankruptcy thousands of companies and individuals who held debts denominated in US dollars.
In 2004 a phenomenon completely new to most Uruguayans developed: the currency appreciated in nominal terms against the US dollar, going from 30 to 24 pesos to the dollar. This revaluation brought protests from the industrial sector, which felt that it lost competitivity. The government hopes that a floating currency will "de-dollarize" the economy.
Uruguay does not seem to have found a mechanism that provides the exchange rate some level of predictability, while at the same time allowing the country to adapt its prices so that its exports remain competitive.
Circulating Coins and Banknotes
Coins in circulation are: 50 centésimos, and 1, 2, 5, and 10 pesos. Banknotes in circulation are: 5 (Joaquín Torres García), 10 (Eduardo Acevedo Vásquez), 20 (Juan Zorrilla de San Martín), 50 (José Pedro Varela), 100 (Eduardo Fabini), 200 (Pedro Figari), 500 (Alfredo Vázquez Acevedo), 1000 (Juana de Ibarbourú)and 2000 pesos (Dámaso Antonio Larrañaga).
External links
- () () [Banco Central del Uruguay]
- [Uruguayan Coins]
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