The worst performing currency in the world is the Mongolian Tigrik, which recorded another losing session after government of the country is trying to stabilize the crisis economy. Mongolian currency depreciated in 22 consecutive days to 2,243.50 Tigriks per dollar on Tuesday. This is the lowest level since 1993. The depreciation of the currency with 7.8% in August is the biggest among 154 currencies in the world. Since the beginning of the year, Mongolian Tigrik depreciated by over 11%.
Mongolia suffered from falling commodity prices, slowing of Chinese economy and diminishing interest from foreign investors, frightened by the legislative changes and inconsistent policy.
Yesterday, the Prime Minister Jargaltulgyn Erdenebat presented a plan for economic recovery, including the reduction of wages, repayment of debt and creation of a council to attract foreign investment. Jargaltulgyn Erdenebat became Prime Minister in June, when the Mongolian People’s Party defeated the Democratic Party in the country’s elections. The authorities acknowledged that the country is in deep economic crisis. The government is not sure if they can pay salaries and to finance the operating expenses of ministries and army.
In end of June Mongolia had currency reserves of 1.3 billion USD, according to central bank data. The amount decreased by 23.1% yoy, after the previous government increased spending ahead of elections.
Yesterday in Mongolia arrived representatives of the International Monetary Fund. They will start talks with the government to solve the economic challenges in the country.