The Vice President of Mongol Bank, B.Lkhagvasuren, gave an interview regarding the central bank's new currency trading platform that will allow commercial banks to buy and sell foreign currency.
Individual customers, businesses, and non-banking financial institutions will be able to utilize the platform through the banks.Can you explain the reason why Mongol Bank is using the currency trading platform for banks?Most of you are aware of the value fluctuation the MNT has experienced in the last four years.
Even though the fluctuation can mostly be attributed to macroeconomic factors and the state of the domestic and foreign economy, the development of the currency market also has a lot to do with it. Mongol Bank, the Ministry of Finance, and the Financial Regulatory Committee were delegated responsibility for improving the infrastructure of the currency trading market.
In line with that, Mongol Bank has officially implemented the new currency trading platform.What is different about online trading platforms?To put this in simple terms, it is a large currency trading system between banks.
Commercial banks based in Mongolia will directly engage with the platform. Individuals, businesses, and non-banking financial institutions can buy and sell currency through one of the commercial banks.
As of right now, 11 banks are actively trading on the platform.What is the advantage of implementing an online trading platform?In the past, the system of currency trading between banks was done by telephone....