Sunday, June 7, 2015
Mongolian Tugrik has appreciated against US dollar for the past 28 days
The Mongolian currency, the Tugrik, has appreciated against the US dollar for the past 28 days. This appreciation in the currency is the direct result of the recent deal between Rio Tinto and GOM on the Oyu Tolgoi copper mine expansion. A currency can be looked at as the stock of a country and as the news in Mongolia gets better and foreign direct investment begins to increase people will have to purchase Tugriks in order to do business in Mongolia. This will lead to more appreciation of the Tugrik. This is good for any investors that hold assets in Mongolia denominated in Tugrik like real estate and stocks. We should continue to see appreciation of the Mongolian currency as the OT phase 2 ramps up. several years ago the MNT rate was less than 1300 MNT to 1 dollar. the current rate is 1877 MNT to 1 dollar.