Uruguay’s central bank raised on Friday its overnight lending rate to 6.5% from 6.25% as inflation expectations are above the target range of 4% to 6%. The decision took the market by surprise since exporters have been asking for a stronger US dollar, but the Economy ministry said “it did not visualize a loss of competitiveness”.
Uruguayan president Jose Mujica marked distance from Argentina’s Cristina Kirchner and said that denying clearance to a Falkland Islands bound British destroyer to call in Montevideo was based on previous decisions on the issue and “not in a defence of interests against the UK”, reports the local daily Ultima Noticias.
Argentines have lost their title as the world’s biggest beef eaters after the worst drought in 70 years and government export limits to contain domestic prices led ranchers to reduce the number of cattle on the Pampas. Exports have also fallen drastically.
Singapore-based Olam International has successfully gained control of NZX-listed NZ Farming Systems Uruguay. As part of the takeover bid Olam offered 70c a share for all shares, valuing NZ Farming Systems at 171 million NZ dollars, conditional on getting more than half the shares.
The Royal Navy is “disappointed” with Uruguay's treatment of a warship heading to the Falkland Islands, but the incident will not affect “the good defence relationship with the Uruguayans, writes Michael Powell The News from Portsmouth Defence correspondent.
The White House announced Tuesday that, director of the National Economic Council will leave the administration of President Barack Obama and return to Harvard University at the end of the year.
Uruguayan president Jose Mujica told his cabinet that he had contacted the British ambassador to tell him why the Royal Navy HMS Gloucester bound for the Falkland Islands had been authorized to call in Montevideo and a few hours before arriving had clearance withdrawn.
A Spanish flagged trawler that operates in Falkland Islands waters and was heading to Montevideo to unload 700 tons of fish was denied “innocent pass” through Argentine waters and had to steam an additional 17 hours at a cost of 7.000 litres of fuel.
HMS Gloucester, the Royal Navy South Atlantic patrol was banned from entering Montevideo for supplies and fuel, just a few hours before docking and in spite of having been authorized several days before to call in at Uruguay’s capital port.
Uruguayan market analysts don’t believe Brazil’s attempts to prevent its currency from continuing to appreciate will have a relevant impact for Uruguay or for its foreign exchange rate.