The calculation of Montevideo Units (UR) involves using an established index that reflects changes in the average wage index. The value of one UR is periodically adjusted, typically on a monthly basis, by Uruguay’s National Institute of Statistics (INE). The specific formula considers the variation in the Average Wage Index (IMA) over a defined period. To find the current value, one consults official publications from the INE or authorized financial institutions. This value is then multiplied by the number of UR in question to determine the corresponding amount in Uruguayan Pesos (UYU). For example, if one UR equals 1,650 UYU, then 100 UR would equal 165,000 UYU.
Using this unit provides a valuable mechanism for indexing contracts and obligations, particularly in the real estate and financial sectors within Uruguay. Its adjustment based on wage fluctuations helps to mitigate the impact of inflation and maintains the real value of agreements over time. The adoption of UR contributes to economic stability and predictability, benefiting both individuals and organizations engaged in long-term transactions. Historically, it emerged as a tool to address the challenges of managing inflation in the Uruguayan economy.