The greenback in Uruguay at present prices 13.2% greater than it did on the finish of 2021.
Just a few weeks in the past, the Minister of Economy requested financial brokers to demand extra {dollars} in order that the change charge doesn’t recognize.
But the scenario will not be solely worrying the Government but additionally the non-public sector, and the countryside is already beginning to discuss change charge backwardness.
This is what Gonzalo Valdés Requena, president of the Rural Association of Uruguay (ARU), stated just a few days in the past in an interview granted to La Mañana.
The farmer stated the scenario “complicates the competitiveness of the whole sector.”
WHAT DID GONZALO VALDÉS REQUENA SAY?
Valdés Requena defined that he began assembly with the Central Bank of Uruguay (BCU) in June 2022.
“We already saw a deviation of the quotation.”
“At that time, we were told that the dollar was in its fundamentals.”
“Subsequently, when we saw that the situation continued to worsen, we met with them again, in December, the president of the BCU, Diego Labat, and the Minister of Economy, Azucena Arbeleche.”
“We raised our concern with them, and they understand it; they know what it means for the export sector,” he stated.
The farmer defined that the authorities argue that there’s an extra of {dollars} available in the market, which might trigger the greenback charge to be so low.
“We estimate that the dollar should be 25% above the current rate.”
He additionally acknowledged that the nation is struggling a lack of competitiveness and that, on the stage of producers, the drop in buying energy has been very massive.
“That is to say, you have to calculate that 25% deviation in the backwardness plus inflation, and you realize that, with that number, the purchasing power of those of us who have to sell dollars has been greatly reduced.”
On the opposite hand, he assured that the drought is hitting “very hard, at historical levels that have not been seen for many years.”
“The damage is significant.”