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Uruguay's FX market and exchange rate: floating peso, BCU inflation targeting, dollar contracts and the rate used for tax

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Last verified: 2026-10-27 · Status: Stable

The Uruguayan peso floats: the BCU runs inflation targeting with a flexible exchange rate, a 4.5 percent target with a 3 to 6 percent tolerance range, and raised its policy rate to 6 percent on 8 October 2026. The BCU regulates the money and FX markets and may buy and sell foreign currency, and publishes a daily reference quotation (UYU 40.214 per US dollar on 26 October 2026); the law guarantees free transfer abroad in convertible currency. Contracts can be written in US dollars and are enforceable in that currency, and tax conversions use the interbank buying rate of the day before the operation.

USD figures use UYU 40.214 per US dollar, the BCU quotation for DLS. USA BILLETE on 26 October 2026, retrieved from the BCU quotations service on 27 October 2026. Amounts in Unidades Indexadas (UI) use UYU 6.6516 per UI (BCU quotation for 1 October 2026) where the norm fixes the UI of the first day of the month, and UYU 6.6792 per UI (27 October 2026) otherwise. Conversions are for orientation only.

Key facts

Exchange rate regime	Inflation targeting with flexible exchange rate BCU Informe de Política Monetaria Q1 2026 (28 April 2026), as of 2026-10-27 · in force
Inflation target	4.5 %BCU Informe de Política Monetaria Q1 2026 (28 April 2026), as of 2026-10-27 · in force
Inflation tolerance range	3 to 6 %BCU Informe de Política Monetaria Q1 2026 (28 April 2026), as of 2026-10-27 · in force
Monetary policy rate (TPM)	6 %BCU Copom statement 8 October 2026, as of 2026-10-27 · in force
Annual CPI inflation, September 2026	4.7 %BCU Copom statement 8 October 2026, as of 2026-10-27 · in force
BCU quotation, US dollar notes (26 October 2026)	40.214 UYU per USDBCU quotations, as of 2026-10-27 · in force
Foreign currency clauses in contracts	Valid and enforceable in the agreed currency Decreto Ley Nº 14.500 art. 9 and 10, as of 2026-10-27 · in force

The rule

1. The BCU's primary purposes are price stability that contributes to growth and employment, and the regulation and supervision of the payment and financial systems. It regulates the operation of the money and exchange markets, may buy and sell foreign currency, precious metals and other external financial assets to execute monetary policy, and determines the adequate level of, and administers, the international reserves.
Cost to do it: No regulatory charge on FX trades; banks and exchange houses set spreads.
Example: A company buying UYU 4,021,400 of dollars trades at the market rate; the BCU reference was UYU 40.214 per dollar on 26 October 2026. / About US$100,000 before the bank spread.Ley Nº 16.696 (BCU Charter), as worded by Ley Nº 18.401, Art. 3, art. 25, art. 27 literal C) and art. 30, 2008-10-24 official text · verified 2026-10-27

2. The BCU conducts monetary policy under inflation targeting with a flexible exchange rate. The target is 4.5 percent a year with a tolerance range of plus or minus 1.5 percentage points (3 to 6 percent), over a two year monetary policy horizon. The exchange rate is partly driven by external factors and local market supply and demand.
Cost to do it: Not applicable.
Example: With a 4.5 percent target, a UYU 4,021,400 receivable loses about UYU 181,000 of purchasing power in a year at target inflation. / About US$4,500 of purchasing power on US$100,000 at target inflation.BCU, Informe de Política Monetaria, first quarter 2026, Section on the inflation target and expectations; section on exchange rate, 2026-04-28 official text · verified 2026-10-27

3. On 8 October 2026 the BCU raised its monetary policy rate (Tasa de Política Monetaria) by 25 basis points to 6 percent, citing annual CPI inflation of 4.7 percent in September 2026 and the aim of keeping expectations anchored and converging to the 4.5 percent target within the two year horizon.
Cost to do it: Not applicable; peso borrowing costs move with the policy rate.
Example: A UYU 4,021,400 peso deposit or loan is priced off a 6 percent policy rate. / About US$100,000 equivalent.BCU, Comité de Política Monetaria statement, Statement of 8 October 2026, 2026-10-08 official text · verified 2026-10-27 · changed: Policy rate raised from 5.75 percent to 6 percent on 8 October 2026.

4. Notes and coins issued by the BCU are legal tender throughout the country, with unlimited payment power for obligations in national currency. The BCU must inform the Executive immediately if international reserves fall, or are about to fall, to an inadequate level for the country's international transactions.
Cost to do it: Not applicable.
Example: A peso debt of UYU 4,021,400 is always discharged by paying pesos. / Not applicable.Ley Nº 16.696 (BCU Charter), Art. 26 and art. 31, 1995-03-30 official text · verified 2026-10-27

5. Parties may agree any clause meant to maintain the value of their obligations, including foreign currency clauses. Documents containing an obligation to pay a sum of money in any foreign currency are enforceable in executive proceedings in the specified currency, and that amount is considered liquid.
Cost to do it: No cost; dollar contracts are lawful and enforceable in dollars.
Example: A lease or supply contract may set the price at US$100,000 rather than UYU 4,021,400, and a court enforces it in dollars. / US$100,000 claim enforced in US dollars.Decreto Ley Nº 14.500 (Updating of obligations), Art. 9 and art. 10, 1976-03-08 official text · verified 2026-10-27

6. The Unidad Indexada (UI) is a unit of account created by law that varies daily with the consumer price index; obligations contracted in UI are governed by that law. Many fines, thresholds and fees are expressed in UI.
Cost to do it: Not applicable.
Example: UI 1 was UYU 6.6516 on 1 October 2026 and UYU 6.6792 on 27 October 2026. / UI 200,000 is about US$33,081 at the 1 October UI value.Ley Nº 17.761 (creation of the Unidad Indexada), Art. 1 to 3, 2004-05-12 official text · verified 2026-10-27

7. For tax purposes, foreign currency is valued at the interbank buying rate for notes (cotización interbancaria tipo comprador billete) at the close of the day before the operation or of the valuation date required by tax rules; currencies not quoted are valued by arbitrage, and if there is no quotation the last prior business day applies. Exchange differences are computed by annual revaluation of balances and on payments and collections during the year.
Cost to do it: Not applicable.
Example: An export invoice of US$100,000 issued on 27 October 2026 is converted at the 26 October rate, UYU 4,021,400. / US$100,000 invoice, peso value fixed by the previous day's interbank rate.Decreto Nº 150/007 (IRAE regulation), Art. 17 and art. 74, 2007-04-26 official text · verified 2026-10-27

Indicator	Value	Date	Source
US dollar notes, BCU quotation	UYU 40.214	26 October 2026	BCU quotations
Unidad Indexada	UYU 6.6516	1 October 2026	BCU quotations
Unidad Indexada	UYU 6.6792	27 October 2026	BCU quotations
Monetary policy rate	6%	from 8 October 2026	BCU Copom
CPI inflation, annual	4.7%	September 2026	BCU Copom
Inflation target and range	4.5% (3% to 6%)	2026	BCU IPOM Q1 2026

Reference values, verified 27 October 2026 (BCU quotations service, BCU Copom statement of 8 October 2026, IPOM Q1 2026)

Worked example

Pricing a contract: a foreign supplier sells US$100,000 of equipment to a Uruguayan buyer with the price in dollars. The clause is valid and enforceable in dollars (Decreto Ley 14.500 art. 10). For IRAE, the buyer books the purchase at the interbank buying rate of the day before, UYU 40.214 on 26 October 2026, or UYU 4,021,400, and recognizes exchange differences when it pays or at year end.

Step by step

1. Decide the contract currency; dollar pricing is lawful and common, peso or UI pricing shifts FX risk to the foreign party.
2. Check the BCU daily quotation and Copom calendar when planning conversions; the BCU publishes the reference rate and policy decisions on its website.
3. Convert at any bank or exchange house; no FX form or declaration is required by law.
4. For tax, use the interbank buying rate of the previous day (Decreto 150/007 art. 74) and revalue balances at year end.

Common traps

The peso floats; the BCU targets inflation, not a level of the exchange rate, so unhedged peso revenue against dollar debt carries real risk.
Peso notes have unlimited legal tender only for obligations in national currency; a dollar obligation can be enforced in dollars.
Thresholds in UI move every day; Ley 19.210 cash limits use the UI of the first day of the month, while other UI amounts use the day's value.
Tax conversions use the previous day's interbank buying rate, which can differ from the rate your bank applied.

Sources

Related: Uruguay country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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