Emerging Markets Rates and Currencies Handbook

Uruguay (UYU - Uruguayan Peso) Citi in Uruguay Citi has had an established presence in Uruguay for 107 years now (founded in 1915). Citi offers key services including corporate investment banking, which focuses on lending, as well as capital markets, cash management, trade finance, trade working capital and trade services; other financial services include investment solutions tailored to client needs. Citi has active presence in the public sector and main private companies, as well as non-resident accounts. Market Overview The Central Bank of Uruguay (BCU) is an autonomous institution which establishes, regulates and enforces monetary policies. The Uruguayan peso is managed under a free-float regime and is fully convertible. Moreover, the BCU imposes no restrictions on the trading or holding of foreign currencies. As an independent entity, the Central Bank of Uruguay is responsible for maintaining price stability through its monetary policies in order to foster economic and employment growth. Additionally, it regulates and supervises the financial and payments systems to ensure solvency and systemic soundness of the national financial system. Although it has regulatory and executive power over the financial system, the central bank imposes no restrictions or capital controls over capital inflows and outflows, foreign exchange and deposits in foreign currencies. Convertibility The Central Bank of Uruguay (BCU) manages the peso under a free-float regime and allows free convertibility. Interest Rate The Central Bank issues daily onshore auctions in UYU almost daily, with tenors going from 1 month up to 2 year. In addition, on the local front, the Ministry of Finance publishes a calendar of local issuances each semester, which include UYU, UI (inflation linked) and UP (nominal wages linked) treasury notes, with tenors between 2 and 15 years. CB bills and Treasury Notes can be settled via local custody account or Clearstream. Another alternative available to access Treasury notes local rates 252