He dollar it fell 0.32% on Wednesday compared to the previous exchange day and closed at 37,709 pesos, according to the price of the Central Bank of Uruguay (BCU), thus reducing the accumulated rise in August to place it at 0.75%.
He dollar it fell 5.89% so far in 2023, while at the year-on-year level its depreciation is 6.59%.
Coupled with a weakening of the dollar globally, the US currency experiences the Uruguay and other emerging economies a phenomenon of appreciation of local currencies as a result of the flow of investment overcoming the risk aversion cycle in world markets.
Colombia, Mexico and Brazil they lead the economies whose currencies have strengthened considerably this year. However, throughout August, the price of the dollar in those exchange markets it began to show a certain reduction in its fall.
In the case of Brazilreference market for Uruguayhe dollar accumulates an increase of 3.29% so far this month, while in the year the accumulated decrease is 6.13%.
This month, the Central Bank released the projections of market agents and analysts on the dollar within the framework of the last Economic Expectations Survey. The report showed that they expect it to close 2023 at 39.61 pesos on average, which would imply an increase of 5.04% for the end of the calendar year.
The president of BCU, Diego Labatconsidered yesterday in dialogue with the press that “the behavior of the dollar has clearly been one of the factors that have helped the inflation behaves within the range (target)”.
“We have an exchange market where the dollar fleet, and we understand that this is the best regime for an open and small country like Uruguay“, because it “helps temper any positive or negative shock we may receive from outside.”
Source: Ambito
