The Dollar Should Be at UY $21.20

Monday, 26 July 2010 09:53

According to the Big Mac Index published in The Economist magazine, the dollar should be at UY $21.20. According to the report, 30 countries have their currencies undervalued when compared to the dollar, and 12 countries (mostly in the Euro Zone), have their currency overvalued. The Big Mac Index is based on the concept of what a Big Mac hamburger should cost based on the local economy.

(www.espectador.com, July 26, 2010)

BPS Increased Collection

Friday, 23 July 2010 09:52

The Social Insurance Bank (BPS) increased it's revenue by 4.9% in June compared with the same month last year.
Director, Ernesto Murro, said the number of contributors increased by a similar percentage and that this is the eighth month in a row in wich the bank recorded a number greater than one million three hundred thousand workers.

(www.espectador.com, July 23, 2010)

Controversy in Senate over Dollar Rate

Friday, 16 July 2010 09:28

Yesterday Senator José Amorín summoned the Minister of Economy Fernando Lorenzo, Undersecretary Pedro Buonomo, and Banco Central president Mario Bergara to a meeting.  Lorenzo said that if inflation exceeds the desired level, the government will consider dropping public tariffs.

During the meeting, Amorín maintained that two possibilities exist: that of Buonomo, speaking for President José Mujica, and that of Astori, speaking for Vice President Danilo Astori.  Amorín said “The government has said that Astori would be responsible for economic matters, but then Buonomo announced that the value of the dollar would be between UY $21 and $22.  Then Lorenzo said that it would exchange at approximately UY $19.50.”  

Government spokespersons warned Amorín that he was meddling with internal matters of the Frente Amplio, but Amorín said “It’s not me saying it – it’s the analysts”.

(www.observa.com.uy, July 16, 2010)

Rise in Inflation Predicted

Thursday, 15 July 2010 09:37

According to the Banco Central, inflation will increase to 1.1% in July.  If the prediction is accurate, it will be the highest increase since August 2009.

Regardless, analysts predict that the total increase in 2010 will be around 6.5%, well within 3% to 7% range predicted by the Banco Central.

(www.espectador.com, 15 de Julio de 2010)

Export Prices Stable in May

Wednesday, 14 July 2010 09:15

According to CIU (Chamber of Industry), the IPE (Index of Export Prices) in the industrial sector measured in dollars remained practically unchanged in May, registering an increase of 0.1% over April.  This is a 12.1% increase over May of 2009.

Nevertheless, only half of the sectors registered a monthly increase in export pricing, led by metallic products & machinery (1.8%), food, beverage, & tobacco (1.1%), and wood, paper, & printing (0.7%).  The other groups experienced a decrease, led by chemicals & plastics (-4.6%), basic minerals & non-metallic minerals (-2.4%), and textiles, clothing, & leather (-1.5%).

On the other hand, the success of the Uruguayan soccer team in the World Cup was evident not only to Uruguayans, but to the entire world export market.  Their success is expected to favorably affect future exports.

President José Mujica was alerted to this favorable situation.  In an interview with the weekly publication Brecha (to be published on Friday), Mujica noted that the export industry believe that the team’s success will improve sales because of the worldwide publicity.

Asked about this subject, Uruguayan Exporters Union Vice-President Álvaro Queijo said that even if exports don’t increase, the team’s success generated a worldwide recognition of Uruguay.  He explained that there are various Uruguayan sectors that need more recognition, such as wine production.  Argentina and Chile have already received recognition for their wines, which permits them to enter the lesser-known markets.  The success of Uruguay’s soccer team should open up new wine export markets.

(www.observa.com.uy, July 14, 2010)