UYU (Uruguayan Peso)

AAA

DEFINITION of 'UYU (Uruguayan Peso)'

The currency abbreviation for the Uruguayan peso (UYU), the currency for Uruguay. The Uruguayan peso is made up of 100 centésimos and is often presented with the symbol $. Because of the instability of this currency, larger items such as real estate and cars are often priced in U.S. dollars.

INVESTOPEDIA EXPLAINS 'UYU (Uruguayan Peso)'

After introducing its first currency (the peso) in 1896, relative stability was enjoyed until after WWI, when inflation began to create economic difficulties in the country. Inflation became very serious in the mid '60s and into the '70s, and the peso was replaced by the nuevo peso (new peso) in 1973 at a rate of 1000:1. After many years of inflation continued, the nuevo peso was once again replaced with the Uruguayan peso we see today, again at a rate of 1000:1.

Inflation and monetary instability is so rampant in Uruguay that locals are quite used to the devaluation of their currency. In fact, the short periods of appreciation that the currency sees are referred to as "atraso cambiario," which means "the exchange rate is running late".

RELATED TERMS
  1. Currency

    A generally accepted form of money, including coins and paper ...
  2. Forex - FX

    The market in which currencies are traded. The forex market is ...
  3. Quote Currency

    The second currency quoted in a currency pair in forex. In a ...
  4. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
  5. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  6. Forex Futures

    An exchange-traded contract to buy or sell a specified amount ...
Related Articles
  1. A Primer On The Forex Market
    Options & Futures

    A Primer On The Forex Market

  2. Currency Exchange: Floating Rate Vs. ...
    Forex Education

    Currency Exchange: Floating Rate Vs. ...

  3. Dollarization Explained
    Forex Education

    Dollarization Explained

  4. 6 Factors That Influence Exchange Rates
    Bonds & Fixed Income

    6 Factors That Influence Exchange Rates

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center