Uruguay - the smallest Hispanic country in South America - is boxed into the eastern coast of South America by Brazil to the north and Argentina to the west. To the south is the wide estuary of the Río de la Plata, while the Atlantic Ocean washes its eastern shore. For the most part, the country's undulating topography is an extension of that in southern Brazil, and includes two lowly ranges - the Cuchilla de Haedo and the Cuchilla Grande. The terrain levels out west of Montevideo, while east of the capital are impressive beaches, dunes and headlands. Five rivers flow westward across the country and drain into the Río Uruguay.

The country's flora consists mostly of grasslands, with little forest except on the banks of its rivers and streams. In the southeast, along the Brazilian border, are lingering traces of palm savanna. Wild animals are scarce, although rhea (a bird-like ostrich) can still be seen in areas near major tributaries.

The climate is temperate, even in winter, and frosts are almost unknown. Winter (June to September) temperatures range from 10 to 16°C (50 to 61°F), while summer (December to March) temperatures are between 21 to 28°C (70 to 82°F). Rainfall, evenly distributed throughout the year, averages about 1m (3ft) over the entire country.

Annual inflation in Uruguay hovers around 15%, but steady devaluations keep prices from rising rapidly in dollar terms.Costs are slightly lower than in Argentina, especially with respect to accommodation and transportation. Budget travelers can get by on US$15 a day; those looking for a bit more comfort and nutrition should expect to spend closer to US$30 a day.

Cambios in Montevideo, Colonia and Atlantic beach resorts change US dollars cash and travelers' checks (the latter at slightly lower rates or modest commissions). Banks are the rule in the interior. Better hotels, restaurants and shops accept credit cards, but Uruguayan ATMs reject North American or European credit cards. There is no black market.

In restaurants, it's customary to tip about 10% of the bill. Taxi drivers do not require tips, although you may round off the fare for convenience.

Uruguay's main attraction is its beaches, so most visitors come in summer. Along the littoral, summer temperatures are smotheringly hot, but the hilly interior is cooler, especially at night.