The Central Bank of Uruguay has set out an agenda to increase the use of the Uruguayan peso in savings, lending and investment decisions following talks with executives from public and private banks. The bank is promoting incentives aimed at ensuring the financial system has the conditions to expand the range of local currency savings, credit and investment products available to households and businesses. The initiative is framed as a response to Uruguay's still high level of financial dollarization. Greater use of pesos would, in the central bank's account, widen local currency financing options for companies and reduce exposure to foreign currency fluctuations, while giving households more stable savings alternatives that help preserve purchasing power. The agenda is anchored in Uruguay's low and stable inflation environment and inflation expectations aligned with the target, which the bank said strengthen predictability and monetary policy credibility. The board reaffirmed its commitment to continue working with the financial system on an incentive structure to advance this strategy.
Central Bank of Uruguay2026-05-22
Central Bank of Uruguay pushes incentives to expand savings credit and investment in Uruguayan pesos
The Central Bank of Uruguay has outlined an agenda to increase the use of the Uruguayan peso in savings, lending and investment, following discussions with public and private banks. It will promote incentives to expand local currency products for households and businesses, aiming to reduce financial dollarization and exposure to foreign currency risk. The strategy is anchored in low and stable inflation and expectations aligned with the target, and the board reaffirmed its commitment to work with the financial system on the incentive framework.