Uruguay’s government will recapitalise central bank
Economist says BCU failed to hedge against exchange rate risks
The Uruguayan finance ministry announced on March 27 it would recapitalise the central bank after it reported a negative balance for 2022. The shortfall has been traced to the strengthening of the peso against the dollar, causing losses on foreign currency holdings.
“The executive branch will present a capitalisation plan for the entity [the central bank], to be finalised in 2023”, the ministry said, in a joint press statement with the central bank.
Under its current statute, the Central Bank
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