Banks Lifted Their Limitations on USD Transactions

2022-12-06 16:12:42

Ulaanbaatar /MONTSAME/. Commercial banks have set a daily limitation on USD transactions since May and restricted some long-term loans. Thereby, banks started lifting their daily limit on USD.


According to economists, the exchange rate of the USD against the MNT will continue to rise, and the economic situation will worsen in the coming year. Last October, the USD exchange rate decreased to MNT 3,150-3,250 in foreign exchange marketplaces, while it reached MNT 3,420 in the Bank of Mongolia. But at the “Naiman Sharga” currency exchange, it reached MNT 3,440-3,450 making the difference between the market exchange rates MNT 30-40.


The USD exchange rate rose from MNT 2,950 to MNT 3,350 within a week in April and May. However, this bubble started to subside when commercial banks eased their restrictions to some extent.


However, economists warn of the possible risk that the bubble will re-emerge and the USD exchange rate might exceed MNT 3,500.


Banks are beginning to take off their daily limit on USD and are issuing certain restrictions on obligatory large transactions.


The Bank of Mongolia announced that the USD’s exchange rate equals MNT 3,420 as of today /12.02/2022/. Consequently, the gap between the central bank’s exchange rate and the “Naiman Sharga” started to fluctuate within two digits.


But commercial banks such as State Bank, Khaan Bank, Golomt Bank, and Trade and Development Bank are offering USD to people without any limitations.