Uruguay

Montevideo, founded by the Spanish in 1726 as a military stronghold, soon took advantage of its natural harbor to become an important commercial center. Claimed by Argentina but annexed by Brazil in 1821, Uruguay declared its independence four years later and secured its freedom in 1828 after a three-year struggle. The administrations of President Jose BATLLE in the early 20th century established widespread political, social, and economic reforms that established a statist tradition. A violent Marxist urban guerrilla movement named the Tupamaros, launched in the late 1960s, led Uruguay's president to cede control of the government to the military in 1973. By yearend, the rebels had been crushed, but the military continued to expand its hold over the government. Civilian rule was not restored until 1985. In 2004, the left-of-center Frente Amplio Coalition won national elections that effectively ended 170 years of political control previously held by the Colorado and Blanco parties. Uruguay's political and labor conditions are among the freest on the continent.

Economical characteristics

 * Currency: Uruguayan peso (ISO code: UYU)
 * Central bank discount rate: 10% (31 December 2008)
 * Commercial banks lending rate: 12.45% (31 December 2008)
 * Stock of money (M1): $2.247 billion (31 December 2008)
 * Quasi money (with M1 makes M2): $9.409 billion (31 December 2008)

Notable events:

 * Banking crisis: 1893, September 1898, March 1971, 1981-1984, 2002
 * Years in inflation: 18% (share of years 1811-2009 with annual inflation above 20 per cent per annum)
 * Public default: 1876-1878, 1891, 1915-1921, 1932-1938, 1965, 1983-1985, 1987, 1990-1991, 2003 (external), 1932-1937 (domestic)

Links

 * Uruguay on Wikipedia
 * Central bank of Uruguay
 * Country profile (pdf) from the Enterprise Studies page (part of the The World Bank Group)
 * Studies from the Library of Congress (1986-1998)
 * BBC country profile