Uruguay (country)

D

Currency, Banking, and Trade

The legal currency of Uruguay is the peso uruguayo, consisting of 100 centésimos (24.50 pesos uruguayos equal U.S.$1; 2005 average). In 1993 the peso uruguayo replaced Uruguay’s former currency, the nuevo peso, at the rate of 1 peso uruguayo per 1,000 nuevo pesos. Uruguay has a well-developed banking system, with many private banks. The Bank of the Republic, founded in 1896, is a state bank and the financial agent of the government. The Central Bank of Uruguay controls private banking.

Foreign trade plays an important role in the economy of Uruguay. In 2004 exports were valued at $2.9 billion and imports at $3.1 billion. The country’s main trading partners are Argentina, Brazil, and the United States. Textiles, meats, fish, rice, and hides are the most important exports. Imports include raw materials for manufacturing, fuel and lubricants, food products, plastics, chemicals, prescription medicines, construction materials, machinery, and cars and trucks.

Uruguay is a founding member of several trade groups, including the Latin American Integration Association (LAIA) and the Southern Cone Common Market (known by its Spanish acronym, Mercosur). The LAIA, which encompasses all of the countries in South America except Suriname, Guyana, and French Guiana, works toward increasing regional integration and trade. Mercosur, which also includes Argentina, Brazil, and Paraguay and is headquartered in Montevideo, focuses on establishing duty-free trade between members.

E

Tourism

Tourism is an increasingly important part of the economy of Uruguay. Visitors come from all over the world, but especially from neighboring Argentina. Uruguay features many luxurious beach resorts, such as the famous Punta del Este.

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V

Government

Uruguay had several constitutions during the course of the 20th century. The country alternated between a presidential form of government and a system under which executive power was held by a nine-member national council. Uruguay's most recent constitution, adopted by popular referendum in 1966, provides for a republican form of government with a popularly elected president and legislature (Congreso, or National Congress). All citizens at least 18 years old are required by law to vote.

In 1973 the National Congress was dissolved after a military takeover. The government was ruled by a national security council composed primarily of high-ranking military officers. All local governments were dissolved and replaced with officials appointed by the central government. This system lasted until general elections were held in 1984, paving the way for a return to civilian rule the following year.

A

Executive

The electoral system restored in 1984 provides for a president and vice president chosen by universal suffrage for a five-year term. The president appoints a Council of Ministers to head the various government departments.

B

Legislature

The National Congress, Uruguay’s legislature, consists of a Chamber of Deputies, which has 99 members, and a Senate, with 30 members. Elected by popular vote, members of the legislature serve a five-year term. The country's vice president serves as president of the Senate.