Currency swap deal with China to stabilize Mongolia's tugrik: official

ULAN BATOR, May 6 (Xinhua) -- Mongolia's central banker said Friday that a currency swap deal with China would help stabilize Mongolia's currency tugrik against the yuan.

The 5-billion-yuan (about 769 million U.S. dollars) deal, signed by presidents of the two countries' central banks, will last three years and is extendable by mutual consent, the People's Bank of China said in a statement.

L. Purevdorj, president of Mongol Bank, the country's central bank, said at the signing ceremony Friday that the deal would help stabilize the tugrik against the yuan by allowing the yuan into Mongolia's foreign market in emergency situations.

Chinese central banker Zhou Xiaochuan said the deal would contribute to the financial stability in both countries and promote bilateral trade and investment.

Chinese yuan is currently the second actively traded currency in Mongolia's foreign exchange market, Purevdorj said, adding that Mongolia has a strong demand for the yuan as bilateral ties in trade, economy and investment become closer.

Related:

China signs currency swap deal with Mongolia

BEIJING, May 6 (Xinhua) -- The People's Bank of China (PBOC), the country's central bank, said Friday that it has signed a 5-billion-yuan (about 769 million U.S. dollars) currency swap agreement with the Central Bank of the People's Republic of Mongolia.

The agreement will last for three years and is extendable by mutual consent, according to a statement posted on the PBOC's website. Full story
Editor: Mo Hong'e

Xinhua, news agency of China