The exchange rate delay once again monopolizes the economic agenda

The exchange rate delay once again monopolizes the economic agenda

He exchange delay once again gains ground in the economic debate of the Uruguay by the hand of a dollar that does not rebound and competitiveness that does not recover.

The issue, almost exclusive during 2022, was put on the agenda by different actors in the agribusiness, who do not hide their concern about an exchange rate that affects them and that was not able to be corrected despite the drop in interest rates carried out during last year for Central Bank of Uruguay (BCU).

The real exchange rate of dollar in Uruguay It is almost 16% below its fundamentals, a figure higher than the 11% admitted by the government in December 2022, when agricultural complaints on the issue were frequent.

“We have a exchange delay that is screwing us, the biggest of the century, I know that if this exchange rate delay could be reduced by half, the dairy farmers would probably receive 2 cents more per liter of milk,” the former president launched over the weekend. Jose Mujicareturning to a concept that the pre-candidate of the Broad Front Mario Bergara.

The growing concern of agriculture about the dollar

“The exchange rate delay is real and has a strong impact on the country’s competitiveness,” said the president of the Rice Growers Association (HERE), Alfredo Lagoduring the launch of the cereal harvest over the weekend and in front of the President of the Republic, Luis Lacalle Pou.

A few days before, the president of the Rural Association of Uruguay (ARU), Patricio Cortabarríahad advanced to Ambit that the union would raise this issue with the presidential candidates during the campaign.

“He exchange delay “It continues to be the main eroder of the economic results of companies and a factor that is taking people out of the countryside and weakening those on a smaller scale,” he said. “We understand that it is an issue that must be addressed structurally for the country. There must be a macroeconomic policy designed to be able to solve this problem in the long term,” he stressed.

Economists warn about the effect of the exchange rate delay

Michele Santo, Martin Vallcorba and Juan Dubra They agreed, although with nuances, at the first breakfast of the Association of Marketing Managers (ADM), that fiscal and opening measures must be taken to solve the exchange rate delay.

While, Deborah Eilenderresearcher in the Center for Development Studies (CED), He pointed out in dialogue with this medium that “the dollar “It remains very stable at a low level because there was a genuine and massive inflow of foreign currency.”

Eilender highlighted that “the Foreign Direct Investment (FDI) reached the highest value in the last decade” and gave as an example the income of dollars from the signing of the agreement with HIF Global for the construction of a green hydrogen plant in Paysandu.

Source: Ambito

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