June ended for the government with the presentation to Parliament of the draft Accountabilitywhich corrected the GDP growth estimates downward, and with the exchange rate delay as the predominant issue in the economic sphere.
This week, meanwhile, the executive headed by the president Luis Lacalle Pou has two relevant political events: the summit of the mercosur in the Argentine city of Iguazú and the vote of no confidence of the minister Luis Alberto Heber for security figures.
The censorship of Heber puts the coalition in crisis again
Tuesday the Chamber of Deputies will vote on the motion of no confidence against the Minister of the Interior, Luis Alberto Heber, promoted by the Broad Front (FA) for their security management.
Although the National Party and the Colorado Party ensure that it will not prosper, the fact that for the first time the Multicolor Coalition did not obtain the necessary votes to, last week, vote on the endorsement motion marked a new crack in the ruling party.
It came, once again, from the hand of the wayward partner, Town meetingwho questioned the policy against insecurity developed by the Interior and who, together with the FA, supported the rejection of the minister.
Lacalle Pou and a new tense meeting with Fernández and Lula
President Luis Lacalle Pou travels on Tuesday to the Argentine city of Puerto Iguazu to participate in a new Mercosur summit, in which the Argentine presidents, Alberto Fernandezand brazilian, Lula da Silvawill seal their common vision of regional policy.
The forum’s discussions, far from focusing on Uruguayan attempts to advance a Free Trade Agreement (FTA) with China As in the previous two meetings, they will concentrate on finding a way to untangle the negotiations with the European Union (EU) by the trade agreement, held back by new environmental demands from Brussels.
Will the dollar reach 37 pesos?
The dollar closed June with the lowest value in 16 months: 37.40 pesos. From “end to end” —that is, from the end of May to June—, the US currency fell 3.54%, the largest monthly drop since February 2022, when it fell 3.67%, and in what goes of the year, accumulates a fall of 6.65%.
The growth of Gross Domestic Product (GDP) expected for the year, although modest, added to the drop in the inflationwhich facilitates greater flexibility in the monetary policy of the Central Bank of Uruguay (BCU) Regarding the interest rate, they are local factors that contribute to a good performance in terms of stability for the Uruguayan economy.
If we add to this, external factors such as the shift in investment towards emerging economies, as well as the weakening of the dollar internationally, the path for an appreciation of the US currency in Uruguay seems far away.
Source: Ambito
