The exchange rate for the tugrug reached its lowest point since June 2010. At MNT 1,370, the IMF has said a flexible exchange rate bodes well for the Mongolian economy.

Last year the tugrug appreciated 13 percent against the U.S. dollar, compared to this year's 7 percent depreciation. As the currency depreciation begins to slow down, demand for foreign currencies have stabilized. According to Frontier Securities Chief Investment Strategist Dale Choi, the strength of the tugrug  largely corresponds to this demand.

“Most important for enterprises with foreign exchange settlements is to have the correct expectations based on true and real information; not to trust various rumors; not to make incorrect decisions out of fear,” said Choi.

The IMF has said that the flexible exchange rate is a good sign for the economy.  A flexible currency will help control inflation and cushion against external shocks. It will also help “facilitate the real exchange rate changes that are likely to take place over the medium term” due to growth in the mineral sector. Record high international reserves within the Bank of Mongolia could fortify the Mongolian economy against a sudden fall in commodities worldwide.