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What Is The MUR (Mauritius Rupee) ?

The Mauritius Rupee (MUR) is the currency of Mauritius and is issued by the Bank of Mauritius, replacing earlier currencies like the Indian Rupee in 1877. Mauritius has a mixed economy focused on tourism, textiles, and sugar and has been a colony of European powers including the Dutch, French and British before gaining independence in 1968. The Bank of Mauritius uses a managed float system to stabilize the value of the MUR.

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27 views

What Is The MUR (Mauritius Rupee) ?

The Mauritius Rupee (MUR) is the currency of Mauritius and is issued by the Bank of Mauritius, replacing earlier currencies like the Indian Rupee in 1877. Mauritius has a mixed economy focused on tourism, textiles, and sugar and has been a colony of European powers including the Dutch, French and British before gaining independence in 1968. The Bank of Mauritius uses a managed float system to stabilize the value of the MUR.

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Jonhmark Aniñon
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Education

 FOREX TRADING STRATEGY & EDUCATION

FOREX & CURRENCIES TRADING    FOREX TRADING STRATEGY &


EDUCATION

MUR (Mauritius Rupee)


By 
JAMES CHEN
 
 
Updated Apr 18, 2021
What Is the MUR (Mauritius Rupee)?
The Mauritius Rupee (MUR) is the national currency of the Republic of Mauritius issued by the
central bank, the Bank of Mauritius. 

Since 1994, the Bank of Mauritius has used a managed, or dirty, float to set the value of the
Mauritius rupee against other currencies. It is subdivided into 100 cents and issued by the Bank
of Mauritius.

KEY TAKEAWAYS

 The Mauritius Rupee (MUR) is the national currency of the Republic of Mauritius, a
small island nation off the southeast coast of Africa.
 The Mauritius Rupee (MUR) is issued by the Bank of Mauritius, the country's central
bank.
 The establishment of the Mauritius Rupee (MUR) replaced the Indian rupee, the
Mauritius dollar, and the British pound as legal tender in the country in 1877.
 Several currencies carry the rupee designation—other currencies include those of India,
Pakistan, and Indonesia.
Understanding the MUR (Mauritius Rupee)
The Mauritius Rupee (MUR) is one of several currencies which carry the rupee designation.
Other currencies include those of India, Pakistan, and Indonesia. Under a system of dirty floats,
the Bank of Mauritius manages the exchange rate by intervening in foreign currency markets,
using the country’s reserves to stabilize the value of its currency in times of volatility.

In 1820, at the colony’s request, Britain introduced the Mauritius dollar at par with the Spanish
dollar, though Indian rupees (INR) and British pounds continued to circulate alongside the
dollar. An influx of Indian immigration into Mauritius in the mid-1800s caused a massive inflow
of Indian rupees into the country.
This influx led to the establishment of the Mauritius rupee, which replaced the Indian rupee, the
Mauritius dollar, and the British pound as legal tender in the country in 1877. The new currency,
introduced at par with the Indian rupee, was equal to 0.5 Mauritius dollars. At the time, 10.25
Mauritius rupees equaled 1 British pound.

In 1934, the government changed pegs from the Indian rupee to the British pound (GBP), using a
rate of 13.3 Mauritius rupees to 1 British pound. The Bank of Mauritius came into existence in
late 1967, replacing the Board of Commissioners of Currency ahead of the country’s
independence from Britain.

The country abolished its peg to the British pound in 1972, establishing an exchange rate that
functionally tracked the U.S. dollar through a crawling band or peg. In 1979, a fall in global
sugar prices and a rise in oil prices put pressure on Mauritius’ economy.

As part of the agreement to receive aid from the International Monetary Fund, the country agreed
to a 22.9% devaluation of the rupee in October of that year. Another sizable depreciation of
16.7% followed in September 1981, leading to political upheaval and an ongoing debate about
the social and political fallout from currency devaluation.

In 1982, the bank re-pegged the currency to a basket of currencies weighted to reflect its major
trading partners. This situation, as well, wound up tracing movements of the U.S. dollar with a
slightly broader crawling band than seen previously. Independence coincided with the
abolishment of restrictions on foreign exchange within the country and a change in policy that
effectively narrowed the crawling peg around the U.S. dollar.

Further liberalization of fiscal policy resulted in a move to a managed float policy, which the
central bank has used since 1994.

Brief History of Mauritius and Its Economy


The Republic of Mauritius is a small island nation off the southeast coast of Africa. The island
nation has been a Dutch, French, and British colony between 1638 and 1968 and was the home
of the now-extinct bird, the dodo.

In 1965, the British government began to divest itself of its colonies. Mauritius adopted a
constitution and declared independence in 1968. The political structure followed the British
parliamentary system and did not become a true republic with elected representatives nominated
and voted for by popular ballots until 1992. South Africa, France, and the United Kingdom are
the nation's largest trading partners

According to the World Bank data, Mauritius has an upper-middle-income diversified economy


consisting of tourism, textile, and sugar. As of 2017, the nation had a 3.8% annual gross
domestic product growth with a yearly inflation deflator of 1.9%.

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