Currency - Uruguayan peso

Currency  >  Uruguayan peso

Uruguayan peso

$
Uruguayan peso (peso uruguayo) has been a name of the Uruguayan currency since Uruguay's settlement by Europeans. The present currency, the peso uruguayo (ISO 4217 code: UYU) was adopted in 1993 and is subdivided into 100 centésimos. There are no centésimo coins currently in circulation.

Uruguay obtained monetary stability in 1896, based on the gold standard. This favorable state of affairs ended after World War I. An unsettled period followed. Economic difficulties after World War II produced inflation, which became serious after 1964 and continued into the 1970s.

The peso was replaced on 1 July 1975 by the nuevo peso (new peso; ISO 4217 code: UYP) at a rate of 1 new peso for 1000 old pesos. The nuevo peso was also subdivided into 100 centésimos.

After further inflation, the peso uruguayo (ISO 4217 code: UYU) replaced the nuevo peso on March 1, 1993, again at a rate of 1 new for 1000 old.

Uruguayans became 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 U.S. dollars.

During the military rule, the peso was on a crawling peg to the dollar. 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 predictability was introduced, this time in the form of a sliding range, with 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. By 2008 the peso reached 19 to the US dollar, recovering more than half of its loss during the crisis. This revaluation brought protests from the industrial sector, which felt that it lost competitiveness. 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.

In 1994, stainless-steel 10, 20 and 50 centésimos and brass 1 and 2 pesos uruguayos were introduced. 5 and 10 pesos uruguayos were introduced in 2003 and 2000, respectively. The coins replaced same value notes. Coins in circulation are:

* 1 peso uruguayo

* 2 pesos uruguayos

Country

Uruguay

Uruguay, officially the Oriental Republic of Uruguay (República Oriental del Uruguay), is a country in the southeastern region of South America. It borders Argentina to its west and Brazil to its north and east, with the Río de la Plata (River of Silver) to the south and the Atlantic Ocean to the southeast. Uruguay is home to an estimated million people, of whom 1.8 million live in the metropolitan area of its capital and largest city, Montevideo. With an area of approximately 176000 km2, Uruguay is geographically the second-smallest nation in South America, after Suriname.

Uruguay was inhabited by the Charrúa people for approximately 4,000 years before the Portuguese established Colonia del Sacramento in 1680; Uruguay was colonized by Europeans relatively late compared with neighboring countries. Montevideo was founded as a military stronghold by the Spanish in the early 18th century, signifying the competing claims over the region. Uruguay won its independence between 1811 and 1828, following a four-way struggle between Spain, Portugal, and later Argentina and Brazil. It remained subject to foreign influence and intervention throughout the 19th century, with the military playing a recurring role in domestic politics.

Language

Uruguayan peso (English)  Peso uruguaiano (Italiano)  Uruguayaanse peso (Nederlands)  Peso uruguayen (Français)  Uruguayischer Peso (Deutsch)  Peso uruguaio (Português)  Уругвайское песо (Русский)  Peso uruguayo (Español)  Peso urugwajskie (Polski)  烏拉圭比索 (中文)  Uruguayansk peso (Svenska)  ウルグアイ・ペソ (日本語)  Уругвайський песо (Українська)  Уругвайско песо (Български)  우루과이 페소 (한국어)  Uruguayn peso (Suomi)  Peso Uruguay (Bahasa Indonesia)  Urugvajaus pesas (Lietuvių)  Uruguayské peso (Česky)  Uruguay pesosu (Türkçe)  Уругвајски пезос (Српски / Srpski)  Uruguayi peso (Magyar)  Urugvajski pezo (Hrvatski) 
 mapnall@gmail.com