Uruguay reduces US dollar dependence as peso gains stability

Uruguay is gradually reducing its dependence on the US dollar as economic stability and low inflation restore confidence in the national currency, the peso. While the dollar remains dominant in bank deposits, the peso is increasingly viewed as a reliable and potentially profitable alternative for savings and investment.

Often referred to as the ‘Switzerland of Latin America,’ Uruguay’s shift is supported by stable democratic institutions, the rule of law, a strong social state, and relatively high levels of economic prosperity. Despite historical challenges including economic crises and periods of dictatorship, the country has worked to strengthen the credibility of its central bank and mitigate inflation to reclaim monetary sovereignty.