The Central Bank of Uruguay published remarks by its president, Guillermo Tolosa, highlighting what he described as historically strong conditions in Uruguay’s banking system and indicating the central bank will move forward with measures to incentivise greater use of the Uruguayan peso as part of a gradual, “inevitable” dedollarisation process. Speaking at Moody’s Ratings’ Inside LatAm: Uruguay 2025 event, Tolosa pointed to capital levels “almost double” regulatory requirements, low reliance on external funding, historically low non-performing loans and exceptionally high liquidity. He also argued that the presence of top-tier international banks supports professional management standards aligned with international regulatory best practice, and linked high dollarisation to constraints on credit growth and economic dynamism, stating that increased peso use would allow banks to expand local-currency lending and diversify their business models.
Central Bank of Uruguay 2025-11-11
Central Bank of Uruguay president highlights banking system strength and signals measures to encourage peso use
Uruguay's Central Bank president, Guillermo Tolosa, emphasized strong banking conditions and plans to promote the Uruguayan peso to support dedollarisation. Tolosa highlighted capital levels nearly double regulatory requirements, low external funding reliance, and high liquidity, linking high dollarisation to limited credit growth. He argued increased peso use would enable banks to expand local-currency lending and diversify business models.