LatinNews Regional Monitor: Brazil & Southern Cone - 21 June 2018

Uruguay: The central bank (BCU) has decided to intervene in the local currency market. It announced on 20 June that it had sold US$2.5m worth of dollars in the local currency market to reduce the volatility in the exchange rate after the value of the peso fell by 0.49% on the day to reach an exchange rate of Ur$31.716/US$1. The peso has depreciated by 10.2% against the US dollar so far this year and the BCU has noted that this loss in value is now starting to feed into domestic inflation, with the May year-on-year inflation rate reaching 7.2%, above the bank’s target range of 3%-7%.

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