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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".
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