BANK OF MONGOLIA SELLS USD 56.8 MILLION

Ulaanbaatar, Mongolia /MONTSAME/ At a forex auction held on Tuesday, the Bank of Mongolia (BoM) sold USD 56.8 million at closing rate of MNT 1,342.50 after commercial banks put forward their proposals to buy USD 57.8 million. During the auction, the BoM refused for the bids to sell CNY considering the demand and supply of CNY is balanced. FOREX auction is one of the instruments used by the Bank of Mongolia to make the domestic currency market operations obvious and fair, increase the benefit and ensure the stability of national currency - MNT. The FX auctions are launched in Tuesdays and Thursdays within the officially licensed banks in Mongolia. The BoM prefers to provide the domestic market participants with clear and fair information to not let the MNT rapid fluctuation comes out and to ensure the sustainability of the currency market. The offers from the banks and the BoM participation level were stopped being announced to the public due to its negative effect on the above principle on December 27 of 2010. The BoM continues reporting the closing exchange rate of the FX auction. B.Khuder