Ruralistas claim for exchange rate delay and warn of loss of jobs and less investment

The Rural Federation (FR) issued a statement on Tuesday 22 in which it questions the management that the government headed by President Luis Lacalle Pou carries out to control inflation, alluding to the low dollar value.

The document states, among other considerations, that “it is difficult for us to understand that they insist on a path whose consequences for the country’s economy, based on its export sector, end up being very negative.”

The rural entity chaired by Martín Uría indicates that it “views with deep concern” the exchange rate evolution “and its consequences on the country’s export sectors”.

Uría highlighted The Observer that the union, concerned about this adverse scenario for quite some time, the first thing it did was undertake a series of meetings with government authorities, for example with the Minister of Economy and Finance, Azucena Arbeleche.

“Now, as we considered at the meeting of the board of directors (this Monday the 21st), what we did was inform the producers (through the statement) and that the message reach the government,” he added.

Asked what the value of the dollar should be, Uría admitted that there is no specific study prepared by the RF, but that based on what they have discussed with members of various business chambers, the commercial and industrial sectors, and not only those related to rural areas, “there is talk of 20% more”, adding that in any case should not be below $46 per dollar.

In addition, the community points out that the aforementioned scenario of exchange rate delay not only affects the competitiveness of the productive sector in relation to neighboring countries, but also with competitors from outside the region.

“The inflation in dollars that has been generated for some time, at times endured thanks to the good international prices we had, is causing negative consequences for companies in the sector that will surely determine loss of jobs, less investment and therefore will affect the economic growth of the country“, maintains the FR.

The statement points out that the adverse consequences of these policies are “experiences that have been lived with all governments, whatever their sign.”

Efforts made to improve competitiveness problems in other areas are also recognized, such as fuels, international insertion and infrastructure, “but in this matter past experiences force us to be alert.”