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The Bank of Mongolia has made a new proposal for Mongolia to use the Mongolian Tugrug (MNT) in direct trading with neighbors China and Russia. Current standard practice is to use USD in trade with neighbors.
The call comes as the MNT has weakened 5.5% against the USD but has gained in value when compared to the Chinese Yuan (CNY) and Russian Ruble (RUB). In these conditions, it will offer Mongolia more advantages to trade directly in MNT, this will save Mongolia from losing currency in unfavorable trades against the USD.
The Governor of the Bank of Mongolia N.Bayartsaikhan also called for members of Parliament to create a new institution tasked with review and analysis of foreign trade issues, and developing policy recommendations. Member of Parliament have also asked the Cabinet to review the matter.
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