Definition of Tugrik (MNT)

What is the Tugrik (MNT)?

Tugrik (MNT) is the official currency of the country of Mongolia. The tugrik has been used as the national currency since 1925.

It officially replaced other existing foreign currencies to become Mongolia’s only legal currency. It is abbreviated as MNT and is represented by the symbol ₮.

Tugrik, which is also known as tögrög and tughrik, can be found in the following denominations: ₮ 1, ₮ 3, ₮ 5, ₮ 10, ₮ 20, ₮ 50, ₮ 100, ₮ 500, ₮ 1,000, ₮ 5,000, ₮ 10,000 and ₮ 20,000 (although notes less than ₮ 10 are no longer printed).

The most commonly used coins come in these denominations: ₮ 20, ₮ 50, ₮ 100, ₮ 200 and ₮ 500.

The currency is held by the country’s central bank, the Bank of Mongolia.

Key takeaways

  • The tugrik is the official national currency of Mongolia.
  • It has been in use since 1925, when it replaced all other currencies in the country.
  • The tugrik is abbreviated as MNT in the forex market and is represented by the symbol ₮.
  • The Bank of Mongolia, the country’s central bank, maintains the tugrik.
  • Banknotes range in denominations from ₮ 1 to ₮ 20,000, while coins are valued between ₮ 20 and ₮ 500.
  • The most common and popular exchange currency for the MNT is the United States dollar (USD).
  • Travelers can only import and export a maximum of ₮ 815 in and out of the country.

Understanding the Tugrik (MNT)

The foundation of Mongolia’s financial system was established in 1924, the same year that the country’s central bank was formed. The central bank of Mongolia was originally called the Industrial and Commercial Bank of Mongolia; It was renamed the Bank of Mongolia in 1954. The bank is responsible for overseeing and maintaining the stability of the tugrik.

The first banknotes entered circulation in December 1925; The tugrik completely replaced the Mongolian dollar three years later, in 1928. The MNT is not pegged to any currency and no other currency is pegged to it.

The most common and popular exchange currency for the MNT is the United States dollar (USD).As of June 11, 2021, the exchange rate was one MNT for $ 0.000350195. A single dollar bought about ₮ 2,856.

Travelers can only import and export a maximum of ₮ 815 in and out of the country.The main banks in the country can exchange foreign currency without difficulty and can provide cash advances when necessary.

People can use US dollars in conjunction with credit and debit cards at major retailers, hotels, and automated teller machines (ATMs) where travel and tourism are common, especially in Ulaanbaatar, the country’s capital.But it is always a good idea for people to carry local currency with them when traveling anywhere in Mongolia.

History of the Tugrik (MNT)

The federal government enacted a currency reform law on February 22, 1925, giving the central bank exclusive authority to issue the tugrik. In addition to naming the currency, the law also established parameters on how the currency would be backed: a minimum of 25% for precious metals and 75% for “highly liquid assets.”

The tugrik was previously subdivided into Mongos or möngös.A mongo was the equivalent of 1/100 of a tugrik.But due to its low value, the mongo was withdrawn from circulation.The coin was originally printed and minted in the Soviet Union, but is now produced in the United Kingdom.

Mongolia has an economy that is highly dependent on agriculture and livestock. Its economy depends on agricultural, livestock and mineral resources. Due to the severe and widespread economic impact of the COVID-19 pandemic, Mongolia’s economy contracted by 5.3% in 2020, the most extreme contraction since the early 1990s. However, over the past 30 years, the economy has expanded enormously; since 1991, the country has tripled its GDP per capita.

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Mark Holland

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