The chief of the Currency and Value Department of the Central Bank of Mongolia, D.Ganbat, was interviewed about the disclosure of fake Yuan being circulated in Mongolia.

-The General Police Department announced that 6000 fake Yuan may be circulating in Mongolia on Monday.

How does the Central Bank of Mongolia control foreign fake currencies?

-We do not issue Chinese Yuan, so we cannot control foreign currencies. Apparently commercial banks, Customs, Border Control and the Police are able to reveal fake currencies. For us, we can only monitor our own currency.

The General Police Department has issued a warning about fake Chinese Yuan seen at the market from Monday.

The People`s Bank of China warned that the fake Yuan is printed very in a very similar manner to the real currency.  With the naked eye fake ones are almost identical to real Yuan. China has warned that the fake ones will be seen at the market.

-If the Central Bank of Mongolia do not control fake foreign currencies, foreign currencies that come through Customs must be regulated and monitored? How much of a foreign currency required a bill of Customs entry?

-Mongolian Customs requires a necessary a bill of Customs entry for foreign currency above the amount of 10,000 Yuan. Commercial Banks, dealers, businesses and citizens also bring some amounts of Chinese currency to Mongolia.

But fake notes could be handed through citizens and currency dealers into the market.
Mongolian banks have dealings with Chinese Commercial banks so they can buy Chinese currency via bank cheques. Basically interbank transfers are safe, because both sides have control over the currency.

The third channel is when the Central Bank buys Chinese Yuan to supply commercial banks from the People”s Bank of China according to trade agreements.

So it is almost impossible for fake foreign currency to be brought into the country via interbank transfer.

But some amount of fake foreign currencies can be hidden within the currency dealer’s illegal selling operations.

-How often is a fake foreign currency revealed in a foreign country? China is believed to have strong control over fake currencies.

-It is said that China revealed almost 2 billion Yuan worth of fake currency in 2008.  In 2004 and 2005 Canada also disclosed 500 notes in a million Canadian dollars. Therefore Canada changed its currency note with plastic notes to prevent counterfeiting. 

-Large amounts of money are transferred through non-bank financial institutions in Mongolia. Do those institutions report fake foreign currencies?

-Almost nothing is reported.  We hope that we will cooperate with the Police to tighten the control over fake foreign currencies. We are ready to train people.  There is also one more thing. Customs and the Border Control should tighten the control over foreign currencies. If the People`s Bank of China announces a notice of fake currency and reveals the differences from the real currency we can conduct training and provide information to the public.