US dollar hits 3,180 MNT at Naiman Sharga

The demand for the US dollar has risen at the Naiman Sharga Currency Exchange Center after banks issued limits on USDMNT conversion. In particular, one USD was being exchanged for 3,180 MNT as of March 31 at the center when the official exchange rate announced by Mongol Bank was 2,944.6 MNT for a US dollar.

Moreover, private currency exchangers are not giving more than 2,000 USD to 3,000 USD to each person.

The US dollar was traded at 2,920 to 2,960 MNT a week ago at the main currency market. But only a few places were selling greenbacks. Since March 23, the

US dollar has been steadily appreciating by 30 to 40 MNT every day.

According to currency exchangers, besides the internal regulation of banks, the US dollar is volatile due to the external climate. Therefore, the US dollar is expected to continue to strengthen in the near future. Also, one Chinese yuan is being sold for 470 MNT to 500 MNT at Naiman Sharga.

On March 31, Mongol Bank announced the US dollar exchange rate at 2,944 MNT. However, commercial banks such as State Bank, Khan, Golomt and Trade and Development Bank were not selling US dollars to anyone unless they had a “valid reason”. If relevant documents are provided, banks are apparently issuing US dollars equivalent to 5 to 15 million MNT per customer. However, some people complained that even large banks are not allowing transfers of foreign currency equivalent to 1 million MNT or more.

Traders have previously reported that they have been unable to buy their ordered goods due to the cap on the US dollar. For example, commercial banks are transferring US dollars equal to no more than 5 million MNT to 15 million MNT in foreign currency transactions. As a result, traders are unable to pay or make orders for goods abroad. Commercial banks refused to explain why such restrictions were imposed. Mongol Bank has not issued a statement on this matter either.