Mongolia’s foreign exchange reserves have shrunk to USD 2.6 billion U.S. at the end of August, down around USD 1.9 billion from the beginning of this year.

The significant decrease in the forex reserves is largely related to a current account deficit of the payment balance, the Bank of Mongolia said.

Current account of the payment balance had a deficit of USD 2.2 billion at the end of the second quarter, 2.1 times higher than the same period last year, Mongolia’s National Statistics Office said.

The country’s forex reserves stood at USD 4.9 billion  at the end of April 2021, hitting an all-time high.

In recent days, Mongolian commercial banks have limited foreign-exchange transactions amid dwindling forex reserves.