Uruguay's 1989 monetary reforms were driven by chronic inflation that had eroded the old peso to near-worthlessness — the "nuevo peso" system, introduced in 1975 at a rate of 1,000 old pesos to one new, was itself already collapsing by the late 1980s. By 1993, the entire nuevo peso series was abandoned and replaced by the peso uruguayo, with another 1,000-to-1 conversion.
Uruguay's 1989 monetary reforms were driven by chronic inflation that had eroded the old peso to near-worthlessness — the "nuevo peso" system, introduced in 1975 at a rate of 1,000 old pesos to one new, was itself already collapsing by the late 1980s. By 1993, the entire nuevo peso series was abandoned and replaced by the peso uruguayo, with another 1,000-to-1 conversion.