CHAPTER ONE
Article 4. Primary Objective of the Bank of Mongolia
1. The primary objective of the Bank of Mongolia is to ensure stability of the national currency - togrog.
Article 5. The Bank of Mongolia Functions
1. The activities of the Bank of Mongolia shall have the following functions within the scope of the objectives stated in Article 4 of this Law:
1/Issuing currency into circulation and regulating them;
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CHAPTER TWO
Currency of Mongolia
Article 6. Exclusive right to issue banknotes and coins into circulation
1. The Bank of Mongolia has an exclusive right to issue banknotes and coins of Mongolia into circulation.
2. Production and issuance of counterfeit banknotes and coins into circulation is prohibited.
Article 7. Currency unit and its forms
1. The official unit of currency of Mongolia is togrog. One togrog is equal to one hundred mongo.
2. The currency of Mongolia shall be in the form of banknotes or coins and their design shall be approved by the State Ikh Khural.
Article 8. Legal tender
1. Togrogs issued into circulation by the Bank of Mongolia shall, without any limitation, be legal tender of payment accepted at their face value in every settlement conducted throughout the Republic of Mongolia.
2. The Bank of Mongolia may authorize use of other negotiable instruments in substitution for the togrog.
/This Section was revised by Law of May 31, 2017/
Article 9. Bank of Mongolia activities related to currency
1. The Bank of Mongolia shall conduct activities to maintain an adequate structure of currency in the circulation by the way of issuing and withdrawing currency from circulation.
2. The Bank of Mongolia shall organize and procure printing, delivery, safekeeping and stock building and maintenance of the currency and shall determine the validity of currency and replace and destroy worn-out and damaged banknotes and coins.
3. The Bank of Mongolia shall approve guidelines for replacement of worn-out and damaged banknotes and coins. It is prohibited to destroy any currency without of the Bank of Mongolia approval.
Article 91. Combating counterfeit currency
- The Bank of Mongolia shall determine if the currency is counterfeit or genuine.
- The Bank of Mongolia shall destroy counterfeit currency.
- The Bank of Mongolia shall approve procedures for determining whether currency is counterfeit or not, receive information on counterfeit and suspected currencies as well as destruction of counterfeit currencies.
/This Article was added by the Law of January 28, 2010/