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The peso moneda nacional was replaced on 1 July 1975 by the nuevo peso (new peso; ISO 4217 code UYP) at a rate of 1 new peso for 1000 old pesos. The nuevo peso was also subdivided into 100 centésimos. After further inflation, the peso uruguayo (ISO 4217 code UYU) replaced the nuevo peso on March 1, 1993, again at a rate of 1 new for 1000 old.
The Gold-Exchange Standard arises out of the discovery that, so long as gold is available for payments of international indebtedness at an approximately constant rate in terms of the national currency, it is a matter of comparative indifference whether it actually forms the national currency ... The Gold-Exchange Standard may be said to exist ...
This included extremely tight control on all currency exchange operations, which involved setting a maximum exchange of $200 US dollars per month for all citizens, imposing a new 35% tax on all foreign currency exchange operations, and artificially freezing the official exchange rate. [20]
A fixed exchange rate, often called a pegged exchange rate, is a type of exchange rate regime in which a currency's value is fixed or pegged by a monetary authority against the value of another currency, a basket of other currencies, or another measure of value, such as gold.
In 1932, the rial was pegged to sterling at a rate of £1 = Rls 59.75. The exchange rate was £1 = Rls 80.25 in 1936, £1 = Rls 64.350 in 1939, £1 = Rls 68.8 in 1940, £1 = Rls 141 in 1941 and £1 = Rls 129 in 1942. In 1945, the rial was pegged to the U.S. dollar at USD 1 = Rls 32.25. The rate was US$1 = Rls 75.75 in 1957.
A currency that uses a floating exchange rate is known as a floating currency, in contrast to a fixed currency, the value of which is instead specified in terms of material goods, another currency, or a set of currencies (the idea of the last being to reduce currency fluctuations).
The program adopted a fluctuating exchange rate that was finally stabilized in 1962 at 11,875 bolivianos to the US dollar. The currency reform of January 1, 1963 adopted the peso boliviano, equal to 1,000 bolivianos, with an initial central exchange rate of 11·875 per US$1 .
Under the country's official fixed exchange rate to the US dollar the new currency was devalued by roughly 95% compared to the old hard bolívar. [44] The day was declared a bank holiday to allow the banks to adjust to the new currency. [45] Initially, during a transition period the sovereign bolívar was to be run alongside the hard bolívar. [46]