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USD exchange rate remains unstable after 38.6 million USD supplied

Despite Mongolbank’s attempt to stabilize exchange rates, the rate of the MNT keeps decelerating. Mongolbank supplied 26.4 million USD and 10.6 million CNY (1.6 million USD) at their currency auction, and 10.6 million USD through a swap agreement on July 22. On the same day, the MNT-USD exchange rate at the Naiman Sharga currency exchange market went from 1,852 to 1,854 within a few hours. Despite the 38.6 million USD supplied by Mongolbank to the financial market, the MNT-USD exchange gap keeps growing.
The decrease of foreign direct investment and the decline of mineral product prices in international markets are the main causes of USD exchange rate acceleration. Mongolbank is in a position to tighten monetary policy in order to decrease inflation and bring balance to the USD exchange rate.

Short URL: http://ubpost.mongolnews.mn/?p=10850

Posted by on Jul 27 2014. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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