Banknotes
MONGOLIA: A Century of Banking
Celebrating 100 Years with Banknote Modernization
As Mongolia celebrates a century since the founding of its Central Bank, the country is not just reflecting on its rich history but also moving forward with a strategic modernization of its banknotes. In a grand commemoration, the Central Bank of Mongolia released a new 5,000 Togrog banknote on July 5, 2024. The note, printed by Crane Currency on paper of its own making, includes the BREEZE® security thread.
Modernization of the series is part of a broader effort to bolster public trust and maintain the integrity of Mongolia’s cash-based economy amid rising digital payment trends.
“Our currency is a symbol of independence and an identity card of Mongolia,” says Alimaa Badam, Director of the Currency Policy and Planning Division at the Central Bank of Mongolia. “Despite the global shift towards cashless transactions, cash remains integral to Mongolian society, embodying the nation’s history and values. This latest upgrade in banknote security reflects a commitment to preserving these traditions while embracing modern technology.”
Evaluating Public Security Features
The Bank has focused on enhancing security features while maintaining the main banknote design approved by Parliament, working with external suppliers to make the features easily recognizable using “feel, look, tilt” methods.
For central banks, a key mission is issuing high-quality, durable banknotes that are difficult to counterfeit. Over a decade ago, the rise in counterfeited banknotes in Mongolia prompted the Bank to improve public security using the latest technologies.
“We had to upgrade our banknotes to stay ahead of counterfeiters,” says Alimaa Badam. “People often don’t check their banknotes thoroughly, which is problematic in low-light conditions like supermarkets and taxis. With MOTION SURFACE® or other Crane micro-optic security threads, this issue is mitigated.”
Selecting the Right Suppliers
The current banknote series, while over 30 years old, has seen significant security technology advancements.
“As a central bank, we want to introduce new banknotes, but any new designs must be approved by Parliament. Until then, upgrading security features on existing designs is the way forward,” says Alimaa Badam.
After inviting leading banknote printing companies to submit tenders, Crane Currency won and printed the commemorative banknote for the Bank’s 100th anniversary. The 5,000 Togrog features SPARK® Live with Truspin effect and Crane’s BREEZE security thread, noted for its easy-to-use movement effect.
“Crane Currency has a very good design and production team – and we have done this job together,” says Alimaa Badam.
Mongolia – the Transformation to a Fast-Growing Economy
Mongolia, once lacking an efficient financial system has, since the early 1990s, transformed into a vibrant multi-party democracy with one of the world’s fastest-growing economies. In terms of payment systems and its infrastructure developments, the Bank of Mongolia made significant advances in building a less cash society. It undertook EMV chip technology migration of the national payments brand ‘₮ card’ in 2019, which now accounts for about 60% of the payment card market.
Despite the rise in digital payments, cash remains integral to Mongolia’s economy, highlighting a dual system where traditional and modern methods coexist. Cash payments account for 29% of all types of everyday payment transactions in local markets, shops, and among older generations more accustomed to physical currency.
From 2018 to 2022, cash in circulation grew in value by an average of 4% and volume by 5.3%. By the end of 2023, the total value of cash in circulation reached 1152 trillion MNT.
Mongolia is also unique in not favoring coins. Instead, low value banknotes in denominations of 1 to 100 Togrog are used in place of coins.
Strategic Moves in Modernizing the Banknotes
The Central Bank of Mongolia began upgrading the banknote security features in 2018, focusing on the three highest denominations, the 5,000, 10,000 and 20,000 Togrog which were most often counterfeited. The implementation of upgraded security features has resulted in a significant reduction in counterfeit currency in recent years. As upgraded banknotes were issued, the Bank always kept the public in mind, working with their suppliers to provide them with information about the features.
“We are very happy with the quality and latest security technologies from Crane Currency,” says Alimaa Badam. “Mongolia was the third country to use MOTION SURFACE, and we proudly highlight that the 20,000 Togrog was the first banknote with a fully registered 8 mm wide MOTION SURFACE stripe.”
What’s next for Bank of Mongolia and its Banknotes?
The Bank of Mongolia is actively exploring ways to reduce the environmental impact of its banknote and currency operations through several initiatives.
For instance, the Bank is studying new methods to minimize the carbon impact during the destruction of cotton-based currency, including options for recycling shredded banknote material. It is also assessing efforts for even greener banknote recycling methods leveraging research that shows cotton-based currency can be transformed into compost.
Chronology of Security Upgrades & Commemorative Banknotes2006 – commemorative banknote for the 800th Anniversary of the Great Mongol Empire 2018 – 5,000 Togrog 2019 – 50 and 20,000 Togrog 2020 – 100, 500, and 1,000 Togrog 2021 – 10,000 Togrog 2021 – commemorative banknote for the 100th Anniversary of People’s Revolution 2024 – commemorative banknote for the 100th Anniversary of the Central Bank of Mongolia |