The president of the Central Bank spoke with agricultural representatives and confirmed that the interest rate is affecting the value of the dollar.
The authorities of the Union of Exporters of Uruguay (UEU) and the rural federation met with the president of the Central Bank of Uruguay (BCU), Diego Labat, to ask for explanations for the monetary policy decisions that they consider to be detrimental to agriculture. Although they said that it was an “interesting” meeting, they pointed out that “He did not leave any encouraging outlook.”
The vice president of the Rural Federation, ignacio cabrerasaid that the head of the agency also recognized that the current level of interest rates affects the exchange rate. “He made it very clear to us that it is true that it affects, so at least we understand each other a little better,” revealed the agricultural leader in conversation with Rurales TV El País.
“We let him know about some concerns we have,” said Cabrera, who also assured that Labat “It is very clear that the export sector is being badly affected by this”. In any case, he announced that from the rural organizations they will continue “trying to sensitize the economic team.”
At the meeting, the president of the BCU explained the reasons why this monetary policy is carried out. According to Cabrera, Labat considered that there is an important income of dollars due to the “significant” sale of services, and that there is also a shift of the private investor towards the instruments in pesos. All this is what causes “a slack demand for dollars and that the price of the dollar goes down”.
“We understand the reasons”, affirmed the vice president of the Rural Federation, but considered that “the government should somehow mitigate collateral damage”.
The field asks that the port rates be lowered
In the Union of Exporters there is an important concern with everything that has to do with the port. Cabrera, from Federación Rural commented that “as a result of the concession that was given to Katoen Natiethere was an expectation that the costs would moderate a little”, and that did not happen.
“We are monitoring it and we are still not very clear about how and when these tariff reductions that have not yet been seen are going to take place,” said the ruralista.
Source: Ambito
