In recent days, the foreign exchange rate has been
volatile, with the MNT getting stromnger. Director of Foreign Currency and
Economic Board at the Mongol Bank, G.Delgermaa explains the situation.

What does a strong MNT mean for Mongolia?

People understand a strong MNT is good but that may not be always true.
Stable macro economic indications are what is important. A strong MNT means investment
in mining projects would cost less and this would be good. But our exports will
correspondingly earn less in terms of the MNT. Imports will become cheaper so
domestic production will suffer.

How
does China’s freeing the yuan rate affect Mongolia?
There has been no real change in the Yuan exchange rate. But as China is our
main foreign trade partner, we may have problems. Our exports to China will
earn less and, as I said, cheaper imports will be bad for domestic producers.

Has this begun to happen?
It is too early to say but we are watching the situation.