Is the the USD doomed as a world reserve currency?

The United States has benefited enormously from being the World’s Reserve Currency because much of the world still uses the dollar for international trade.  This is because foreign governments must hold USD in their foreign exchange reserves to settle international claims and intervene in foreign exchange markets. In addition, many emerging market countries like Argentina, Chile, Uruguay, Paraguay and Peru use USD dollars for capital goods. ie housing, commercial property, imported cars, commodities…

The Economist: Uruguay is one of the very few “full democracies” in the world

Uruguay leads as one of four full democracies in the Americas, according to the Democracy Index 2020, published by The Economist. Uruguay scored 8,61 points out of a possible 10 and ranked fifteenth at the world level, while the other “full” democracies in the region are Costa Rica, 8,16; Chile, 8,28 and Canada, with 9,24 points. The overall global average is 5,37, and the end of the democracy list is North Korea, with 1,08 points. According to the Index, countries are catalogued as “full democracies,”…

The Montevideo Water Crisis is a wake-up call to the rest of the world

Drought, Holden Wood Reservoir, Haslingden Grane
The drought in Uruguay results from a combination of factors, including low levels of precipitation, rising temperatures, and the La Niña phenomenon. The new abnormal is that Uruguay will have to deal with more droughts in the future as climate heating continues. The situation is particularly challenging in Montevideo, Uruguay’s capital, where the city relies on a dam, the only drinking water source for the area. With more and more of this saltwater coming in, tap water has reached a point where it has…

South American Book of the Week: The Blue Line

  A South American Novel – The Blue Line Ingrid Betancourt Set against the backdrop of Argentina’s Dirty War and infused with magical realism, The Blue Line is a breathtaking story of love and betrayal by one of the world’s most renowned writers and activists. Ingrid Betancourt, author of the New York Times bestselling memoir Even Silence Has an End, draws on history and personal experience in this deeply felt portrait of a woman coming of age as her country falls deeper and deeper into chaos.…

Argentines continue to flock to Uruguay to Invest

Data released by the Central Bank of Uruguay (BCU) reveals that, as of December 31, 2022, the investment advisors and portfolio managers sector in Uruguay had grown in terms of clients and employees. Specifically, there were 67 portfolio managers and 106 investment advisors in the country, an increase of 10 from the previous year. These advisors and managers managed the assets of 36,170 clients, 21.5% more than at the end of 2021, and employed 951 people. Of the total number of clients, 63.7% were Argentines,…

Global tax guide to doing business in Uruguay

Uruguay imposes taxes, primarily at a national level, over companies and individuals (residents and non-residents), based on the source income rule; that is, taxes will be levied on services performed, assets located and rights economically used within Uruguayan territory (with some exceptions). Uruguay has an important double-taxation treaty network, which follows the Organisation of Economic Cooperation and Development Model (The United Nations Model in some cases), which may reduce or even eliminate Uruguayan…

Answers to Frequently Asked Questions about GTSA

Who are we, and why do we have such a strong web presence with those looking to invest in South American Real Estate? The general characteristics that set Gateway to South America apart from other real estate agencies in the region could be summarised by the following:               Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil,…

A warning for South American Wine exporters – Counterfeiting is rife in your primary markets

South America is producing some of the best wines export in the world . In 2014 an Argentine Malbec won the prize for being the best red wine in the world. Counterfieting is of deep concern to many South American exporters, including winemakers. Asia is a major transgressor in this regard. The statistics of counterfeiting make alarming reading. The most recent OECD estimate dates from 2007, when it says cross-border counterfeiting totalled around US$250 billion annually and almost two percent of global trade…

Is the US dollars Dominance ending in Trade?

Despite recent doubts about the dominance of the US dollar as a global reserve currency, its position remains strong due to its immense starting advantage, network effects, and the supply of safe assets available to dollar investors. While individual countries can circumvent the dominant system, a shift to a multipolar system of currencies is not imminent and would be inherently less stable. The reason why not: Counter arguments: Conclusion: China’s controlled flows of capital and current-account surpluses…

Two-thirds of high-net-worth individuals investing in Uruguay are Argentinean

Uruguay’s investment advisors and portfolio manager sector grew substantially in the number of clients and employees last year. This sector currently manages the money of 36,170 clients, 63% of whom are Argentine, with a total of US$ 28.93 billion invested in different instruments. Data released by the Central Bank of Uruguay (BCU) shows that at the end of 2022, there were 67 portfolio managers and 106 investment advisors in the country. This is an increase of 10 from the previous year. Portfolio managers…

LOBOS ISLAND *, BIRTHPLACE OF URUGUAY PASTORAL FARMING

Cartoon islands are usually a rock amidst water with a palm tree on top. In real life, however, islands are much more. Lobos Island (Isla de Lobos) in Rio Negro Department of Uruguay, was the breeding land for the first cattle to be introduced to Uruguay, the origin of what is today the number one gross national product. It still is an important source of quality beef and now it can be yours. Lobos Island geography Situated at the confluence of Uruguay and Negro Rivers, the aerial view clearly shows the meeting…

Latin America’s economic slump got you down? Get the lowdown on what may happen in 2023! Find out how these could affect your business or investments in the next year.

The global economic slowdown will dampen Latam’s growth prospects, but a reconfiguration of the global economy following the war in Ukraine may give rise to unexpected opportunities for the region. Five Facts About Latin America Economic Outlook Economic challenges faced by the world Nowadays, many countries are struggling with economic difficulties, Latin America included. The Latin American economic outlook for March 2023 shows growth during the COVID-19 pandemic. Governments use policy regularization,…

The state of Uruguay’s exports in 2023

Uruguay is a small yet prosperous South American nation that increasingly relies on exports to drive economic growth. In 2023, Uruguay’s exports are predicted to remain healthy and dynamic, driven by the country’s strong economic performance in recent years. The government of Uruguay has committed itself to promote export-led growth, focusing on bolstering the manufacturing sector and developing its agricultural exports. As a result of these aggressive investments in infrastructure and technology, Uruguay…

What is the most important thing that a person/company should consider if they want to invest in Uruguay?

Beyond the emotional elements, the investor must analyze each country’s advantages. Investors are becoming more aware that foreign investment competition is fierce among countries, especially those located in the same geographic area; therefore, comparing the benefits offered by each country is an excellent idea to finally decide the best option for your circumstances. The American Nobel prize winner, Milton Friedman (economist), said,” Investors in the current context are like consumers; they have…

Casapueblo, The Santorini of Latin America

Located on a high rocky point jutting over the sparkling water of Punta Ballena, Uruguay sits the Casapueblo, a magical sculptured hotel/museum often referred to as the “Greek island of Uruguay” or the “Santorini of Latin America.” The structure’s Cycladic-inspired architecture, combined with Punta Ballena’s fantastic sunset views, makes it look like a small village on the island of Santorini in Greece. The magnificent white building, a short 15-minute drive from Punta del Este, was built by the…
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