Beijing’s decision to remove the peg on the exchange
value of the yuan has had almost no impact in the Mongolian market. On
Thursday, trade at the Naiman Sharga Exchange Market saw one yuan selling for
MNT 202.30 while the buying rate was MNT 203. This is too slight a change to
have any significance. The official value of the Chinese currency is set at MNT
202.36 by Mongolbank. So MNT is rising against USD, but falling against CNY.

Yuan accounts for 25 percent of total foreign currency trading
in Mongolia. When the USD rate rose to MNT1,576 two years the yuan also rose to
MNT 230.76. Since then the MNT has regained its strength, but Mongolbank
officials are yet to give their views on how they anticipate a free yuan to
affect the Mongolian economy.