MRU - Mauritanian Ouguiya

The history of the formation of the Mauritanian Ouguiya (MRU)

In 1973, the Mauritanian Ouguiya was introduced for the first time to replace the previous CFA Franc. 

In 2018, the current Mauritanian Ouguiya was introduced to replace the old Mauritanian Ouguiya at a rate of 1 new Mauritanian Ouguiya = 10 old Mauritanian Ouguiya.

The development process of the Mauritanian Ouguiya (MRU)

First Mauritanian Ouguiya (MRO)

Coins: In 1973, Mauritania issued coins with denominations of 1/5 (1 khoums), 1, 2, 5, 10, and 20 ouguiya. By 2003 and 2004, coins with denominations of 1 ouguiya were respectively issued...minted in Slovakia. In 2009, the 1 ouguiya coin changed its material and the 20 ouguiya bimetallic coin was introduced. Next, in December 2010, the 50 ouguiya bimetallic coin was also issued.

Banknotes: In 1973, banknotes with denominations of 100, 200, and 1000 ouguiya were issued by the Central Bank of Mauritania. In 1979, the 500 ouguiya note was additionally issued. Next, in 2004, the 2000 ouguiya note was issued, and it wasn't until 2009 that the 5000 ouguiya note was released.

First Mauritanian Ouguiya (MRU)

In 2017, Mauritania redenominated its currency at a rate of 1:10 and issued new coins and banknotes. The paper currency is made of polymer and includes denominations from 50 to 1000 ouguiya.

In 2018, the 2 ouguiya coin was issued, and in 2021, the 20 ouguiya note was released. By 2023, the 50 ouguiya note commemorating 50 years of the ouguiya's circulation was also released.

Mauritanian Ouguiya (MRU) Denominations

Below are the denominations of the Mauritanian Ouguiya currently in use: 

Banknotes

• 20 ouguiya

• 50 ouguiya

• 100 ouguiya

• 200 ouguiya

• 500 ouguiya

• 1,000 ouguiya

Coins

1, 2, 5, 10, 20 ouguiya are commonly used. The 1 khoums coin (equivalent to 1/5 ouguiya) is rarely used.

The denominations of the Mauritanian Ouguiya were issued and circulated according to new standards after the currency exchange in 2017.

Mauritanian Ouguiya (MRU) exchange rate

The exchange rate of the Mauritanian Ouguiya against the USD is approximately:

1 USD = 39.52 MRU

That means 1 MRU is approximately equivalent to 0.025 USD. This exchange rate can change daily depending on fluctuations in the international currency market.

The MRU currency has a significantly lower value compared to the USD. This indicates that the economy of Mauritania is a developing country in Northwest Africa. So, what factors affect the exchange rate of the Mauritanian Ouguiya?

Factors affecting the value of Mauritanian Ouguiya (MRU)

The Mauritanian Ouguiya is influenced by factors such as exports, public debt, and the political and economic situation. Specifically as follows:

Lack of economic diversification

Mauritania is a country with only a few key industries and a lack of economic diversification, which makes it underdeveloped. Especially when the global economy faces turmoil, this country is severely affected, causing the value of the MRU to decrease as well.

Mauritania relies on mineral exports

Mauritania mainly exports minerals such as copper, iron, and oil. The fluctuations in the prices of these commodities on the international market directly affect the national income. If prices decrease, export revenues will decline, putting strong pressure on the exchange rate of the MRU.

The political and social situation in Mauritania is unstable

The issues of political and internal instability in this country persist, diminishing the confidence of foreign investors. This has caused a significant decrease in the amount of investment capital into Mauritania. This puts pressure on the foreign currency supply, causing the Mauritanian Ouguiya to depreciate.

The high level of public debt and severe budget deficit

Mauritania is a country with a high level of public debt and frequently faces severe budget deficits. This forces the government to borrow from international organizations or print more money to cover the deficit. Therefore, the Mauritanian Ouguiya continues to depreciate if the adjustment policies are ineffective.

Overall, the current economy of Mauritania is unstable, and political factors, public debt, and exports severely affect the exchange rate of the MRU. The Mauritanian government needs to implement measures to improve and manage the budget effectively in order to restore the value of the Mauritanian Ouguiya.

The future of the Mauritanian Ouguiya (MRU) presents both challenges and opportunities as the country navigates economic transformation. Efforts to bolster the currency's stability through prudent fiscal policies and enhanced governance are essential for fostering investor confidence. Additionally, diversifying the economy beyond traditional sectors and leveraging natural resources can contribute to the Ouguiya's resilience in a volatile global market. Continued collaboration with international financial institutions will also play a vital role in ensuring that the MRU remains a stable medium of exchange, ultimately supporting sustainable growth and development in Mauritania.