Uruguay's Ministry of Economy and Finance outlined measures it is implementing to mitigate the impact of the global weakening of the US dollar on the competitiveness of exports and sectors competing with imports, citing concern over recent exchange rate developments and their potential effects on investment, growth and employment. The actions include negotiating forward purchases of USD to meet the government’s foreign-currency obligations and coordinating financial operations with state-owned enterprises to strengthen their balance sheets. The Ministry also plans to deepen government financing in the domestic market through peso-denominated instruments to reduce reliance on international issuance that settles in USD. A broader set of competitiveness-focused measures, originally being prepared for mid-year, will be brought forward to February.

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