Biding time proves fruitful for Uruguay’s peso push

Uruguay, Montevideo, coronavirus, covid-19, facemask, LatAm, 575
By Oliver West
06 Jul 2020

After a rush of dollar issuance from Latin American sovereigns, Uruguay — the last of the region’s investment grade countries to turn to bond markets during the coronavirus pandemic — spotted the chance in late June to become the first EM sovereign to issue abroad in its own currency this year. Herman Kamil, director of the country's debt management office (DMO), tells GlobalCapital how the sovereign bucked the trend.

When the Covid-19 pandemic hit global bond markets in February and March, Uruguay — in line with similar EM issuers — saw its yields rise by 150bp, even as US Treasury yields plunged. 

These were “prohibitive” levels, said Herman Kamil, head of the DMO since ...

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