Oyu Tolgoi Dispute Weighs on Mongolia Tugrik as Capital Dries Up
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Negotiations between the Mongolian government and Rio Tinto Group over financing for the Oyu Tolgoi copper mine have dried up foreign capital and caused the tugrik to hit a new low, a fund manager said.
“Because of this impasse, international capital is staying away on the sidelines until this important issue is solved,” Michael Preiss, co-founder of Mongolia Asset Management, said in an e-mail. “Everyone is waiting for OT resolution to act as a catalyst to come into the market to ensure that we have indeed seen the bottom and that the currency downtrend has reversed.”