14% Interest (Mongolian Banking)

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rudebwoy

Peacock
Gold Member
The reason why they are paying less on the US dollar is because it is a currency that is losing value, big time.

Mongolia I believe has loads of natural resources unlike Iceland, the Chinese are eyeing up the country of course.

The Icelanders refused to pay back the money, they protested against it and insisted that the bankers fix the mess that they created. Many of the bankers fled the country for Europe and the banks in Iceland somehow survived.

HCassanova - are you thinking of investing some money??
 
B

bface

Robin
rudebwoy said:
The reason why they are paying less on the US dollar is because it is a currency that is losing value, big time.
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Doesn't make sense.

If they expect the US dollar to lose value compared to the Mongolian they would give more not less.

Even if you get 7% on the US dollar you will still lose purchasing power due to inflation.

14% sounds sketchy. The bank will have to make even more profit by investing that money. If it is really such a bear market, I would invest direct and not via a bank.

(Note that I am not speaking from personal experience, just read a lot. Take it's for what it's worth)
 
M

misterstir

 
Banned
I believe this, I been to 3rd world countries that pay from 6-12% for keeping your U.S. dollars in their account. These countries have shortage of these dollars and they also want hard currency and they want to hold on to your money.
 
K

keepreal

 
Banned
bface said:
rudebwoy said:
The reason why they are paying less on the US dollar is because it is a currency that is losing value, big time.
Click to expand...

Doesn't make sense.

If they expect the US dollar to lose value compared to the Mongolian they would give more not less.

Even if you get 7% on the US dollar you will still lose purchasing power due to inflation.

14% sounds sketchy. The bank will have to make even more profit by investing that money. If it is really such a bear market, I would invest direct and not via a bank.

(Note that I am not speaking from personal experience, just read a lot. Take it's for what it's worth)
Click to expand...
That doesn't make sense, cuz dollar inflates at 4.7% currently, u only lose purchasing power if inflation>7%. It is a gain as long they don't default or can't keep the deal. I thought that the currency of Mongolia would be inflating like more than than 14%, holy shit I checked 16.3%, it will take less 4yrs for ur money to decay to it's half of its value if it was in tögrög(their currency).17.3% growth last year, 3rd fastest in the world after ghana, which after Qatar. I think Ghana is where is at, they discovered oil field like5yrs ago, that somebody is gonna get real rich there probably like corrupt like Algeria . damn only 8.9% in ghana, but 2nd least corrupt African country if that says anything.
It would be awesome if imagine if some country money was growing like 1000%, and you got 990% on interest
But mongolia is almost entirely dependent on CHina, china gets fucked, it gets fucked. Most dependent on mines and animal products. It produces alot of cashmere, maybe should export somewhere else. I can see someone from mongolia exporting cashmere to aWestern country as a good business.

http://fixed.deposits.org/ it looks like iranian bank is the best 18%, i guess embargo has hiked up the interest rate, I wonder is transferring money harder now since the swiss shut down the electronic transfer I mean Swift?
 
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Gavin1234

Sparrow
I would really be cautious with investing your money in such an unknown market and would first do some serious research. I had a brief look at the last IMF FSAP which essentially analyses each country's financial sector and looks at existing risks and deficiencies. The last one for Mongolia seems to have been published in 2011. http://www.imf.org/external/pubs/ft/scr/2011/cr11107.pdf

Apparently, there is no FDIC-type deposit insurance scheme but just a blank guarantee. I am not sure how this works and how credible that guarantee is (especially wrt foreign depositors). Credit underwriting seems not to be up par either and capital adequacy of banks is also lacking. That are major risks that you would get yourself into and I have no idea whether the guys that give out the advice here have a solid financial background either. Big word of caution from my side. If you do want to invest your money, only put as much in as wouldn't hurt you.

Who knows, perhaps Mongolia might become one of the next bubbles, if such a threat already exists on a forum like this.
 
K

keepreal

 
Banned
Gavin1234 said:
I would really be cautious with investing your money in such an unknown market and would first do some serious research. I had a brief look at the last IMF FSAP which essentially analyses each country's financial sector and looks at existing risks and deficiencies. The last one for Mongolia seems to have been published in 2011. http://www.imf.org/external/pubs/ft/scr/2011/cr11107.pdf

Apparently, there is no FDIC-type deposit insurance scheme but just a blank guarantee. I am not sure how this works and how credible that guarantee is (especially wrt foreign depositors). Credit underwriting seems not to be up par either and capital adequacy of banks is also lacking. That are major risks that you would get yourself into and I have no idea whether the guys that give out the advice here have a solid financial background either. Big word of caution from my side. If you do want to invest your money, only put as much in as wouldn't hurt you.

Who knows, perhaps Mongolia might become one of the next bubbles, if such a threat already exists on a forum like this.
Click to expand...
Dude, there is too much resources, way too few people in the country, there is so much demand in CHina unless the government or big companies(like mineral price go straight down or some scandal) or banks fuck up real bad or Chinese economy decline, they are gonna grow like crazy. Huge resources, 2.7 million people working for an industry consisting of almost 1.4billion people, it gonna fast, I have a feeling the rich gets really rich and the poor gets fucked. IDK about how trustworthy are the banks though.
 
Flavius Aetius

Flavius Aetius

Woodpecker
Gold Member
One germane fact to remember when depositing money in any bank (especially foreign banks) without FDIC insurance. Your deposit is treated as an unsecured liability by the bank. Big deal from a financial/legal perspective. If the bank collapses, etc you are an unsecured creditor (bottom of the structure) when it comes to recouping your deposit--meaning you will get pennies on the dollar.

The better investment seems to be Mongolian real estate. Sam Zell (the smartest real estate god out there) has been buying up commercial properties in Mongolia because of its great growth prospects due to the China connection.
 
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