Central Bank of Uruguay President Guillermo Tolosa told international investors at the International Monetary Fund and World Bank Annual Meetings that Uruguay is better equipped to absorb external shocks after two decades of economic and financial strengthening. He highlighted diversified markets and funding sources, higher international reserves, a stronger banking system and reduced exposure to U.S. dollar movements in debt and credit. Tolosa also pointed to stronger monetary policy institutions, a freely floating exchange rate and greater transmission of the policy rate to the wider economy. Inflation has remained close to the 4.5% target in recent years, two-year expectations are around that level and Uruguay has the lowest country risk in Latin America, giving the central bank greater scope to respond to changing conditions while preserving price stability.
Central Bank of Uruguay outlines stronger shock resilience and inflation performance near 4.5% target
Central Bank of Uruguay President Guillermo Tolosa told international investors that stronger financial buffers, reduced dollar exposure and a freely floating exchange rate have improved Uruguay’s capacity to absorb external shocks. Inflation remains near the 4.5% target, while two-year expectations are around that level and country risk is the lowest in Latin America.