An additional transmission channel of the Argentine crisis was the run by Argentine citizens - as well as by residents of Uruguay - on their dollar accounts with banks in Uruguay after bank accounts in Argentina had been frozen. In the process, Uruguay quickly ended up with a dollar shortage and thus faced the risk of its banking system breaking down.
Permitting the dollarisation of the banking system without ensuring that a commensurate amount of dollar liquidity would remain available in the financial system made Uruguay, not least, a victim of its own regulatory and supervisory weaknesses.