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Montevideo, October 21st 2020 - 05:34 UTC

 

 

Argentine currency worthless in Uruguay

Thursday, September 24th 2020 - 09:31 UTC
Full article 10 comments
On Wednesday Uruguay's leading bank, which belongs to the State, Banco Republica, was offering ten cents for each Argentine Peso, and selling for 55 cents. On Wednesday Uruguay's leading bank, which belongs to the State, Banco Republica, was offering ten cents for each Argentine Peso, and selling for 55 cents.

For the second day running the Argentine Peso was virtually worthless in neighboring Uruguay foreign exchange houses. On Tuesday the Argentine Peso was worth zero, and on Wednesday there was a modest ten Uruguayan cents offered for the battered Argentine currency.

Uruguay which has a free market for currencies, quotations in money exchange houses include obviously the US dollar, the Euro, and from the two largest South American economies, Argentina and Brazil, Peso and Real. In normal times, the two neighboring countries are Uruguay's main trade partners behind China, and there is a fluid retail traffic, depending on basket produce prices, along both borders, a cyclical tolerated smuggling both ways, although now suspended because of the pandemic.

On Wednesday Uruguay's leading bank, which belongs to the State, Banco Republica, was offering ten cents for each Argentine Peso, and selling for 55 cents.

Back in 2001, the volatile Argentine Peso was equivalent to 14 Uruguayan Pesos, but in 2002, it was down to 3 Pesos and in 2003 it climbed to 10 UY pesos. However since then it has been sliding, and with not many prospects of recovery since the gap between the official exchange of the Argentine Peso in Buenos Aires is in the range of 80 pesos, and the 160 in the black market. Most analysts agree that until this gap is brought to a reasonable level, and people can buy dollars, now mostly barred, the situation will persist.

Meanwhile most Uruguayans regret they can't travel to Argentina for shopping, –given the pandemic restrictions and mandatory quarantine period–, because with dollars they can live as kings.

Categories: Economy, Argentina, Uruguay.

Top Comments

Disclaimer & comment rules
  • Terence Hill

    Trimonde
    “Argentine, or that they sit in the Argentine Sea and Continental Shelf”
    Under the Palmas decision, three important rules for resolving island territorial disputes were decided:
    Firstly, title based on contiguity has no standing in international law.
    International Court of Justice (ICJ) in the North Sea continental shelf cases, in which Denmark and the Netherlands based their claim inter alia on the doctrine of proximity, i.e., that the part of the continental shelf closest to the part of the state in question falls automatically under that state's jurisdiction. In these cases the ICJ rejected any contiguity type of approach. As for continuity, it is argued, the 1958 Geneva Convention on the Continental Shelf and Contiguous Zone, Article 1, now contained in the 1982 Law of the Sea Convention, Article 76, does not support the view that coastal states have sovereignty over islands above the continental shelf. On the contary it laid down doctrine that islands had their own “continental shelves,” p.74
    The Falklands/Malvinas Case Breaking the Deadlock in the Anglo-Argentine...
    By Roberto C. Laver
    “It is therefore not surprising that the General Assembly declared in 1970 that the modern prohibition against the acquisition of territory by conquest should not be construed as affecting titles to territory created ‘prior to the Charter regime and valid under international law’”
    Akehurst’s Modern Introduction To International Law, Seventh revised edition

    Sep 24th, 2020 - 11:53 am +3
  • darragh

    Tri

    “What could be more natural to sovereign right that a land's proximity to one's own feet?”

    Would you care to explain to the people of Singapore that they are part of Malaysia?

    Would you care to explain to the people of Sri Lanka that they are part of India?.

    Would you care to explain to the people of Madagascar that they are part of Mozambique.?

    Would you care to explain to the people of the Canary Islands that they are part of Morocco?

    Would you care to explain to the people of Corsica that they are part of Italy?

    Would you care to explain to the people of Malta that they are part of Libya?

    Would you care to explain to the people of Greenland that they are part of Canada?

    Would you care to explain to the people of the Bahamas that they are part of the USA?

    Would you care to explain to the people of Trinidad that they are part of Venezuala?

    etc. etc.

    No - then stfu you twat.

    Sep 24th, 2020 - 01:29 pm +2
  • Brit Bob

    For the second day running the Argentine Peso was virtually worthless in neighboring Uruguay foreign exchange houses. On Tuesday the Argentine Peso was worth zero, and on Wednesday there was a modest ten Uruguayan cents offered for the battered Argentine currency. Oh dear, so sorry, never mind.

    Sep 24th, 2020 - 10:47 am 0
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