The Central Bank of Uruguay held a meeting with senior executives from banks operating in the country to discuss how to deepen financial intermediation in Uruguayan pesos, as part of its decision to move toward a financial system where the peso has a more prominent role and to address challenges linked to dollarisation. The Central Bank of Uruguay framed deeper peso intermediation as a strategic objective, citing benefits for macroeconomic stability, its role as a buffer in crises, and positive effects on economic activity, business productivity, fiscal sustainability and the protection of more vulnerable sectors. Participants included representatives from Banco Hipotecario del Uruguay, Banco República, Banque Heritage, BBVA, Citi, HSBC, Itaú, Santander and Scotiabank, alongside the Association of Private Banks of Uruguay and members of the central bank’s board and management. The discussion also highlighted the peso’s performance as a savings option and the importance of financial education, with banks positioned as key partners given their role as the main recipients of household and corporate deposits.
Central Bank of Uruguay 2025-10-27
Central Bank of Uruguay convenes banks to advance peso-denominated intermediation and a greater role for the peso
The Central Bank of Uruguay met with bank executives to enhance financial intermediation in pesos, aiming to reduce dollarisation and bolster the peso's role. This strategic objective seeks to improve macroeconomic stability, economic activity, and fiscal sustainability while protecting vulnerable sectors. The meeting highlighted the peso's potential as a savings option and banks' critical role in financial education and deposit management.