Mongolian Banks Curb FX Flows to Fight Cash Crunch
- Commercial banks capping FX transactions to $300 a day
- Reserves shrank 40% in past year, helping drive currency lower
Signage for Khan Bank LLC on top of a building in Ulaanbaatar, Mongolia.
Photographer: Taylor Weidman/BloombergThis article is for subscribers only.
Mongolia is facing a worsening foreign currency crunch following Russia’s war with Ukraine and a slump in China’s economy, forcing local banks to restrict the amount of dollars customers can buy.
Khan Bank, the country’s largest bank measured by total assets, limited the daily amount of cash that can be converted into foreign currencies to 1 million tugrik ($300) from this month, Vice President of Wholesale Banking Uuganbayar Terbish said in an interview on Thursday. That’s down from as much as 300 million tugrik under normal banking conditions and 100 million tugrik in June, he said.