Currency of Uruguay

The currency of Uruguay is Peso; the ISO code of the peso Uruguayo is UYU. The currency is further divided into 100 centesimos. In 1994 stainless steel coins were introduced, for the 10, 20, and 50 centesimos, and brass 1 and 2 pesos uruguayos were introduced; the 5 and 10 peso uruguayos came in 2003 and 2000, respectively. Banknotes for the 20, 50, 100, 200, 500 and 1000 peso uruguayos were introduced in 1996; the 2000 peso uruguayo came in 2003. From amongst these, the 50 centesimos and the 5, and 10 peso banknotes have been withdrawn from circulation; with an addition of the 1, 2, 5, 10, and 50 peso coins in 2011.

Uruguay saw a period of economic difficult after the World War Two, which continues till the 1970s. In 1993 the nuevo peso was replaced by the peso uruguayo. Uruguayans are used to a constant devaluation of their currency which has led them to use the phrase “asatraso cambiario” meaning that, “the exchange rate is running late”. This instability and unpredictability has led to the US dollar being used to denominate prices of big investment items. The currency faced a period of immense crisis from 1982 to 2002, throwing a lot of companies into bankruptcy; however, it recovered from that in 2004 when it appreciated in nominal terms. Uruguay yet has no mechanism that can provide predictability or stability for its currency’s exchange rate.