However, yesterday the price plummeted 1.11%, retracing much of the growth it had achieved during the first 20 days of the month. In addition, it pierced the floor of 39 pesos and closed at 38,866 pesos. So far this year, the accumulated drop is 3%.
A supply without sufficient demand
Faced with this situation that went through a critical moment but that has been repeated for a long time, and after the director of Economic policy of the MEF was criticized by the private sector after accusatory statements; Arbeleche explained that the unstable scenario of the exchange rate is due to the fact that the exchange market has lot of dollar offerproduct of good exports, as well as tourism.
In this sense, he pointed out that this important offer must be accompanied by a claim also important dollars so that the exchange rate does not drop. Something that, due to the high interest rates —high with the different increases carried out by the Central Bank of Uruguay (BCU)—was no more attractive than investments in pesos.
“From the economic team, what we have discussed and requested from all the actors that demand dollars, such as public companies, such as the government Treasury itself, is that go to the market to demand those dollars”, added Arbeleche, with the aim of counteracting the selling pressure.
In this regard, he also considered that the government is a “natural claimant” and that “you will always need dollars to pay your debt.” For this reason, it is “going very actively” to the market to buy US currency, since it will be “needed later”, allowing it to “somehow counteract that offer of dollars.”
Meanwhile, private sector associations, mostly export-oriented, are working hand in hand and in dialogue with government authorities in order to find a balance in which the fall of the dollar and the exchange rate lag do not have an impact. so great in the productive and business sectors.
Source: Ambito
