If you’re walking down Avenida 18 de Julio in Montevideo right now, you’ve probably noticed something strange. The signs in the windows of the casas de cambio don't look like they did a few years ago. Honestly, the Uruguay pesos to dollars situation has become a bit of a local obsession. For a country that is basically "dollarized" in spirit—meaning we buy houses, cars, and even some high-end electronics in Greenbacks—the actual value of the Peso Uruguayo (UYU) matters more than you’d think.
Right now, as we move through January 2026, the exchange rate is hovering around 38.75 pesos per US dollar.
That sounds simple. It’s not.
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Most travelers and even some digital nomads landing at Carrasco Airport make a classic mistake. They see a stable rate and assume the market is quiet. But the "Uruguay pesos to dollars" story is currently one of the most interesting economic tug-of-wars in Latin America. While neighbors like Argentina have dealt with triple-digit inflation and a chaotic "Blue Dollar" market, Uruguay has been moving in the opposite direction. The peso has actually been too strong.
Why the Strong Peso is Giving Everyone a Headache
You might think a strong currency is always good news. If 38 pesos gets you a dollar, that’s better than 45, right? Well, it depends on who you ask.
For the local government and the Central Bank (BCU), the appreciation of the peso throughout 2025 was actually a bit of a crisis. Why? Because it makes Uruguay expensive. Like, really expensive. If you’re a tourist from the U.S. or Europe, you’ll notice that a chivito or a craft beer in Punta del Este costs about the same as it would in Miami or Madrid.
The Central Bank’s Big Move
In late December 2025, the Central Bank surprised the market by cutting interest rates to 7.5%. This was a deliberate attempt to cool off the peso's strength. They want the exchange rate to drift higher—meaning they want more pesos per dollar—to help exporters. When the peso is too strong, Uruguayan beef, cellulose, and software become too pricey for the rest of the world to buy.
So, if you’re holding dollars and looking to trade for Uruguay pesos, you’re actually in a better spot now than you were six months ago. The "super peso" is finally starting to relax.
Where to Actually Exchange Your Money
Don't go to the bank. Just don't.
Banking hours in Uruguay are famously short (usually 1:00 PM to 6:00 PM), and the paperwork is a nightmare. Instead, look for Casas de Cambio. These are small, specialized exchange houses that are everywhere.
- Indumex: Usually has very competitive rates and many branches.
- Gales: A staple in Montevideo and Punta del Este.
- Varilix: Often found in shopping malls like Punta Carretas or Montevideo Shopping.
Pro tip: Check the "Pizarra" (the chalkboard or digital screen). There are two prices: Compra (Buy) and Venta (Sell). If you have dollars and want pesos, you are looking at the Compra rate—the price at which the house buys your dollars.
The 22% Discount You Didn't Know About
This is the part that usually shocks people. If you are a tourist, you should almost never use cash for restaurants or car rentals.
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Uruguay has a law that gives a VAT (IVA) refund to foreigners who pay with a foreign debit or credit card. It’s a massive 9% to 22% discount that happens automatically at the point of sale. If you exchange your dollars for pesos and pay in cash, you lose that discount.
Basically, use your card for:
- Restaurants (The 22% IVA is often fully or partially refunded).
- Car Rentals.
- Apparel and Services.
Use your Uruguay pesos to dollars cash only for small things: the street markets (Ferias), the bus (though many now take cards), or small kioskos.
The 2026 Forecast: What’s Next for the Peso?
Looking ahead at the rest of 2026, experts like those at BBVA and the IMF suggest we’ll see a "nominal depreciation." Translation: the dollar will likely get more expensive in peso terms. Analysts are projecting the rate to move toward 40 or 42 pesos per dollar by the end of the year.
This isn't because the Uruguayan economy is failing. Far from it. Uruguay remains the only country in the region with a solid "Investment Grade" rating from all the big agencies (S&P, Moody's, Fitch). The shift is a managed one. The government wants the dollar to rise slightly to keep the country competitive.
Inflation is the Secret Sauce
While the U.S. has struggled with stubborn core inflation, Uruguay’s inflation has actually dropped to around 3.6% to 4.5%. This is the lowest it has been in two decades. It means that while the exchange rate moves, the actual purchasing power of the peso inside the country is staying relatively stable. You won't see prices jump 10% overnight like they do across the river in Buenos Aires.
The "Redondéo" and Other Quirks
Uruguayans are very chill about money, but there are some quirks you should know. The 1 and 2 peso coins are basically worthless. If your bill is 103 pesos and you pay with a 110, don't be surprised if they just give you 5 pesos back instead of 7. It’s called redondéo (rounding).
Also, if you're trying to exchange Uruguay pesos to dollars at a small shop, they probably won't do it. Go to the authorized exchange houses. They are safe, regulated, and usually very fast. You’ll need a passport if you’re exchanging more than $3,000 USD (or the equivalent), but for small amounts, they rarely ask for ID.
Practical Steps for Your Trip
If you’re landing in Uruguay this week, here is exactly what you should do to handle your money:
1. Don't change more than $20 at the airport.
The rates at the airport casas de cambio are notoriously bad. Just get enough for a taxi or a bus, then wait until you get to the city center.
2. Use a "No Foreign Transaction Fee" card.
Because of the VAT refund mentioned earlier, your credit card is your best friend. Make sure your bank doesn't charge you a 3% fee to use it, or you'll eat into your tax savings.
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3. Carry some small USD bills.
Many places in Uruguay will actually accept US dollars directly. The rate won't be as good as a dedicated exchange house, but in a pinch, a $10 or $20 bill will get you out of trouble. Just make sure the bills are pristine—Latin American banks and exchange houses are incredibly picky about tears or ink marks.
4. Check the "Precios de Transferencia."
If you're staying long-term and need to move a lot of money, look into services like Wise or local bank transfers. Avoid "street" exchangers; there is no "black market" for dollars here because the economy is free and open.
Uruguay is a "high-cost, high-stability" country. Understanding how the Uruguay pesos to dollars rate works isn't just about saving a few cents; it's about knowing when to use your card to trigger those tax refunds and when to hold onto your cash. The peso might be softening a bit in 2026, but it remains one of the most reliable currencies in the southern hemisphere.
Stay smart with your exchanges, always ask for the "Ticket IVA" at restaurants, and enjoy your mate without worrying about the exchange rate fluctuations. The system here is built for stability, not surprises.