What can one buy with MNT 1?
-One liter of water. One tugrug that usually lies at the bottom of one's pocket or seen blown in the wind is the means for the Ger Area resident to buy water. But no one will hold a single tugrug to purchase water these days.
The question is how much significance do we really give to smaller bills. Many of us feel hassled to get change from the store in 10 or 20 tugrug bills and just leave the change there or just "bury" them as offering during the religious rituals.
Sudden appreciation of USD has devalued MNT even more making the 5 and 10 tugrug bills to fade more and more in our eyes. One of my acquintances was convinced that smaller tugrug bills were cut from the circulation just because there is nothing can be bought with one, five and ten tugrug bills in the grocery stores.
One, five, ten and twenty tugrug bills are still in the circualtion. Bank of Mongolia does not decide whether to cut the bills from circulation as the process needs to be approved by State Great Khural first.
One, five, ten and twenty tugrug bills are still in the circualtion. Bank of Mongolia does not decide whether to cut the bills from circulation as the process needs to be approved by State Great Khural first.
Mongolia orders its bills to be printed in France, Germany and Great Britain, which is costly enough already as bills need to have quality paper and encryptions.
It is inevitable that the cost of tugrug increases as USD appreciates and reaches MNT 2000. According to P.Sukhbaatar, Head of the Bills and Valuables Department of Bank of Mongolia the cost of one tugrug equals to MNT 70-80.
May be it is the first time you hear that the cost to print one tugrug is MNT 80. This is the cheapest it can be printed as it is the smallest of all the bills and less encryption in it. The cost to print the bills increase as the bills increase in nominal value. Thus it is good to keep the bills in wallets to increase the durability of the bills during its use.
In Mongolia the average ageing of tugrug is approximately 3-4 years and Bank of Mongolia orders the printing of the tugrug every 3-4 years. Honestly, Mongolian tugrug after three years is denied by the ATMs and Bank of Mongolia renews the bills. But the central declines to announce how many bills were printed.
While the bigger bills are returning to the bank reserves, smaller bills never get back to the central bank. Secotr specialist says it is due to the use of the smaller bills for religious rituals therefore cutting them from the circulation.
Mongolians tend to disregard tugrug, but will take care of the one dollar bill. This might be related with the differences in the exchange rates and the values, but tugrug is the means of payment of Mongolians. Although it carries less value it costs a lot. Therefore, we must learn to treat turgug properly as it cuts the costs.
P.SUKHBAATAR: ECRYPTION OF SOME SMALLER BILLS WERE
Bank of Mongolia has reduced some of the ecryption of the smaller bills in order to reduce the costs of printing the bills. We have clarified some of the issues from P.Sukhbaatar, Head of the Bills and Valuables Department of Bank of Mongolia.
-How many encryptions were reduced in smaller bills?
-We have received the suggestions from the printing companies that we need to reduce the number of encryptions in smaller bills to reduce the costs, as there is less possibility to counterfeit smaller bills.
In this regard, we have eliminated watermark of Chinggis Khaan, embossed patterns and strip from one, five, ten and twenty tugrug bills. It significantly reduces the costs of printing and cuts the printing time as well, as it requires two months just to prepare the mold for one tugrug bill.
Tugrug printing bears high costs. One tugrug bill printing costs MNT 70-80, while 5000 tugrug bill costs MNT 150. Lately the smaller bills are never getiing back to central bank. This is related with use of those for religous rituals.
After it takes 4-5 months to print the bills. So the cutting of the encryptions reduces the printing time to 3-4 months. We are working on improving the bigger tugrug bills to adhere to international standards, as there is always risk of counterfeit bills and there is constant need to improve the encryption.
-Are there any recent cases with counterfeit bills?
-Compared with previous years counterfeit bills have declined. In cooperation with the legal authorites we have encountered 2-3 groups and were transfered to court. Tsagaan sar is the time when the probability of caounterfeit bill occurence is high.
Counterfeit bills are easy to spot. One needs to be more careful when is serviced at gas stations and store. The possibility of printing counterfeit bills for smaller nominal value is less.
-Is it possible for Mongolia to establish bill printing factory here?
-There is very limited possibility as the bill printing uses special paper made of cotton or cypress, which we do not have the raw materials grown in Mongolia. It is less costly to order them abroad rather than establishing a printing factory.
Although we print securities and money cheques here, bill printing is differs a lot. Countries with population of more than 30-50 million can print their bills.
-What is the real cost of printing the tugrug bills?
-Cost of printing one tugrug compared to printing 500 and 100 bills is less as it uses less paper and less encryption. But one tugrug has its own costs as well. Mongolians are not accustomed to using smaller bills, while they have the same purchasing value.
Tugrug printing bears high costs. One tugrug bill printing costs MNT 70-80, while 5000 tugrug bill costs MNT 150. Lately the smaller bills are never getiing back to central bank. This is related with use of those for religous rituals.
Is is possible to cut the smaller bills from the circulation?
-It is decided by the State Great Khural. As no resolution was issued to cut them from circulation we have to print them.
-There were talks to print 50 thousand tugrug bill. What happened to that?
-We have never received such information, while the issue was covered widely over the media. Again the printing of the new bills is based on the public polls, economic impact research and desicion from the State Great Khural. We have no legal right to print bills on our own.
What can one buy with MNT 1?
-One liter of water. One tugrug that usually lies at the bottom of one's pocket or seen blown in the wind is the means for the Ger Area resident to buy water. But no one will hold a single tugrug to purchase water these days.
The question is how much significance do we really give to smaller bills. Many of us feel hassled to get change from the store in 10 or 20 tugrug bills and just leave the change there or just "bury" them as offering during the religious rituals.
Sudden appreciation of USD has devalued MNT even more making the 5 and 10 tugrug bills to fade more and more in our eyes. One of my acquintances was convinced that smaller tugrug bills were cut from the circulation just because there is nothing can be bought with one, five and ten tugrug bills in the grocery stores.
One, five, ten and twenty tugrug bills are still in the circualtion. Bank of Mongolia does not decide whether to cut the bills from circulation as the process needs to be approved by State Great Khural first.
One, five, ten and twenty tugrug bills are still in the circualtion. Bank of Mongolia does not decide whether to cut the bills from circulation as the process needs to be approved by State Great Khural first.
Mongolia orders its bills to be printed in France, Germany and Great Britain, which is costly enough already as bills need to have quality paper and encryptions.
It is inevitable that the cost of tugrug increases as USD appreciates and reaches MNT 2000. According to P.Sukhbaatar, Head of the Bills and Valuables Department of Bank of Mongolia the cost of one tugrug equals to MNT 70-80.
May be it is the first time you hear that the cost to print one tugrug is MNT 80. This is the cheapest it can be printed as it is the smallest of all the bills and less encryption in it. The cost to print the bills increase as the bills increase in nominal value. Thus it is good to keep the bills in wallets to increase the durability of the bills during its use.
In Mongolia the average ageing of tugrug is approximately 3-4 years and Bank of Mongolia orders the printing of the tugrug every 3-4 years. Honestly, Mongolian tugrug after three years is denied by the ATMs and Bank of Mongolia renews the bills. But the central declines to announce how many bills were printed.
While the bigger bills are returning to the bank reserves, smaller bills never get back to the central bank. Secotr specialist says it is due to the use of the smaller bills for religious rituals therefore cutting them from the circulation.
Mongolians tend to disregard tugrug, but will take care of the one dollar bill. This might be related with the differences in the exchange rates and the values, but tugrug is the means of payment of Mongolians. Although it carries less value it costs a lot. Therefore, we must learn to treat turgug properly as it cuts the costs.
P.SUKHBAATAR: ECRYPTION OF SOME SMALLER BILLS WERE
Bank of Mongolia has reduced some of the ecryption of the smaller bills in order to reduce the costs of printing the bills. We have clarified some of the issues from P.Sukhbaatar, Head of the Bills and Valuables Department of Bank of Mongolia.
-How many encryptions were reduced in smaller bills?
-We have received the suggestions from the printing companies that we need to reduce the number of encryptions in smaller bills to reduce the costs, as there is less possibility to counterfeit smaller bills.
In this regard, we have eliminated watermark of Chinggis Khaan, embossed patterns and strip from one, five, ten and twenty tugrug bills. It significantly reduces the costs of printing and cuts the printing time as well, as it requires two months just to prepare the mold for one tugrug bill.
Tugrug printing bears high costs. One tugrug bill printing costs MNT 70-80, while 5000 tugrug bill costs MNT 150. Lately the smaller bills are never getiing back to central bank. This is related with use of those for religous rituals.
After it takes 4-5 months to print the bills. So the cutting of the encryptions reduces the printing time to 3-4 months. We are working on improving the bigger tugrug bills to adhere to international standards, as there is always risk of counterfeit bills and there is constant need to improve the encryption.
-Are there any recent cases with counterfeit bills?
-Compared with previous years counterfeit bills have declined. In cooperation with the legal authorites we have encountered 2-3 groups and were transfered to court. Tsagaan sar is the time when the probability of caounterfeit bill occurence is high.
Counterfeit bills are easy to spot. One needs to be more careful when is serviced at gas stations and store. The possibility of printing counterfeit bills for smaller nominal value is less.
-Is it possible for Mongolia to establish bill printing factory here?
-There is very limited possibility as the bill printing uses special paper made of cotton or cypress, which we do not have the raw materials grown in Mongolia. It is less costly to order them abroad rather than establishing a printing factory.
Although we print securities and money cheques here, bill printing is differs a lot. Countries with population of more than 30-50 million can print their bills.
-What is the real cost of printing the tugrug bills?
-Cost of printing one tugrug compared to printing 500 and 100 bills is less as it uses less paper and less encryption. But one tugrug has its own costs as well. Mongolians are not accustomed to using smaller bills, while they have the same purchasing value.
Tugrug printing bears high costs. One tugrug bill printing costs MNT 70-80, while 5000 tugrug bill costs MNT 150. Lately the smaller bills are never getiing back to central bank. This is related with use of those for religous rituals.
Is is possible to cut the smaller bills from the circulation?
-It is decided by the State Great Khural. As no resolution was issued to cut them from circulation we have to print them.
-There were talks to print 50 thousand tugrug bill. What happened to that?
-We have never received such information, while the issue was covered widely over the media. Again the printing of the new bills is based on the public polls, economic impact research and desicion from the State Great Khural. We have no legal right to print bills on our own.