USD rate has declined sharply last week while it has fell slightly during the last one month.
S.Bold, Senior Advisor to the President of Bank of Mongolia mentioned following four reasons for decline in USD rate in Mongolia.
- Decrease in the demand for dollar
- Increase in the supply of dollar
- Positive expectation have spread among the public that the start of operation of the Oyu Tolgoi underground mine will decline the USD rate
- As of April, 2016, the balance of payments recorded a surplus of $ 200 million
Above mentioned reasons have affected the decline in USD rate and USD rate reachs MNT 1990 today.
Decreased demand for dollar was caused by the decline in foreign trade. Moreover, investors are not interested to make investment, purchase equipment and to expand the services of production.
In the fist quarter of 2016, Mongolia attracted total foreign investment of USD 28 million. Also increased supply of dollar have caused by that the Government supplied the foreign loans and bonds to the exchange market. Most recently, the Government received a 18-year loan of EUR 40 million from the Government of Austria. Majority of the loan will spent upgrading equipment of the biggest hospitals.
Moreover, the Government of Mongolia bought a bond worth USD 500 million. B.Bolor, Minister of Finance stated that the bond will be used to repay the domestic bond. Following sources have affected the exchange rate.
USD rate has declined sharply last week while it has fell slightly during the last one month.
S.Bold, Senior Advisor to the President of Bank of Mongolia mentioned following four reasons for decline in USD rate in Mongolia.
- Decrease in the demand for dollar
- Increase in the supply of dollar
- Positive expectation have spread among the public that the start of operation of the Oyu Tolgoi underground mine will decline the USD rate
- As of April, 2016, the balance of payments recorded a surplus of $ 200 million
Above mentioned reasons have affected the decline in USD rate and USD rate reachs MNT 1990 today.
Decreased demand for dollar was caused by the decline in foreign trade. Moreover, investors are not interested to make investment, purchase equipment and to expand the services of production.
In the fist quarter of 2016, Mongolia attracted total foreign investment of USD 28 million. Also increased supply of dollar have caused by that the Government supplied the foreign loans and bonds to the exchange market. Most recently, the Government received a 18-year loan of EUR 40 million from the Government of Austria. Majority of the loan will spent upgrading equipment of the biggest hospitals.
Moreover, the Government of Mongolia bought a bond worth USD 500 million. B.Bolor, Minister of Finance stated that the bond will be used to repay the domestic bond. Following sources have affected the exchange rate.