Argentina’s much smaller neighbor, Uruguay, has typically been rather better run (admittedly a low bar) than Argentina. Inflation there is now running at an annual rate of under 5 percent. Argentina’s is now galloping along at about 113 percent and set to rise still further. Unsurprisingly, the Argentine peso has crumbled against its Uruguayan counterpart.

And so (via MercoPress):

Uruguayan businessmen have expressed their concern after over 100,000 residents crossed the border over to Argentina during the three-day Aug. 25 Independence Day long weekend to capitalize on a favorable exchange rate, it was reported on both shores.

In the first six months of the year, Uruguayans spent almost US$ 600 million in Argentina, particularly on clothing and pharmaceutical items, which has an impact on the Uruguayan economy, it was explained in Montevideo.

Uruguay’s Confederation of Business Chambers (CCE) President Diego O’Neill said that “all sectors of commerce, services are very affected throughout the coast and not only the coast, this long weekend the exodus of eastern people to Argentina that affects commercial activity throughout the country.”

“Figures from the coast show a higher number of unemployment and obviously this is an impact that is impossible to neutralize,” Labor Minister Pablo Mieres told Telenoche…

The Uruguayan Highway Police recorded lines of up to 8.5 kilometers waiting to cross the General San Martin Bridge, which connects the Uruguayan city of Fray Bentos with the Argentine city of Gualeguaychu. At the Paysandú bridge, the wait was reduced to four kilometers, while at the Salto Grande (Salto-Concordia) crossing, the line was only 300 meters long.

Meanwhile, the “blue dollar” (the “informal”) U.S. dollar/Argentine peso rate is, after a brief pause, strengthening again. One dollar now buys 728 Argentine pesos, as against 292 a year ago.