The Central Bank of Uruguay has adopted two measures aimed at encouraging saving in the national currency and expanding credit opportunities for households and businesses. It will gradually reduce reserve requirement rates on short-term liabilities in Uruguayan pesos and inflation-indexed units so they converge to 12% from Sept. 1, 2026, and it will further adjust the remuneration of reserve requirements in foreign currency. The measures are designed to work together. Lower reserve requirements in local currency reduce financial institutions' costs of intermediating peso funding and support an expansion of local-currency lending, while the change in foreign-currency reserve remuneration further rebalances the relative treatment of the two currencies in favor of peso intermediation. The central bank said a significant share of savings remains concentrated in foreign currency, whereas local-currency deposits are largely channeled into domestic credit, including housing finance and business lending. These steps add to measures adopted in December 2025 and continue a gradual incentive agenda that the central bank said it has been pursuing in coordination with the banking system. The adjustment to foreign-currency reserve remuneration also continues changes that began on March 1, 2026.
Central Bank of Uruguay2026-06-12
Central Bank of Uruguay cuts local currency reserve requirements and further adjusts foreign currency reserve remuneration
The Central Bank of Uruguay adopted two measures to promote saving and lending in local currency. It will gradually cut reserve requirement rates on short-term peso and inflation-indexed liabilities to 12% from Sept. 1, 2026, and further adjust remuneration on foreign-currency reserves. Together, the measures are intended to shift incentives toward peso intermediation.