The drop is mainly due to lower exports of beef and its by-products, which constitute the main export sector of goods in Uruguay. In this area the fall in the two-month period is 28%. The drop is explained by both lower prices and lower volumes. Last year the meat sector had set a historical record in its export performance.
The drop in meats is partially offset by increases in exports of cellulose and beverage concentrates (both from zones frank) as well as in dairy (despite the fact that in this case there was a year-on-year drop in January).
The export dynamics has been affected by international prices and also by the variations you would change. Indeed, in the first two months of this year, the dollar traded, on average, 10.6% below the same two months last year ($39 compared to $42 in the first two months of 2022). So that -calculated in pesos- the drop in sales of goods abroad is much more acute: 14%.
When exporters have to cover internal costs with these pesos, which increase approximately with the CPI, that ability to pay falls more: 20%. This dynamic has sparked a public controversy over the monetary politics and how it affects the exchange rate, with exporters demanding that the exchange delay.
In this scenario the central bank reported on the evolution of the real exchange rate of Uruguay with its main trading partners (the relative evolution of domestic prices measured in dollars, comparing between countries). The data -corresponding to January- show a year-on-year drop in the exchange rate of 17% with countries outside the region, a drop with few precedents. With Brazil the drop is 8%.
China is the main destination for meat exports and with the drop in this area, the Asian giant lost first place as an export destination to Uruguay, which passed into the hands of Brazil. The northern neighbors are important buyers of dairy products, vehicles, grains and other products.
Source: Ambito
