The Mongolian currency has a very long history. There are historical records suggesting that Mongolian nomads have minted coins and used them as currency since the ancient nomadic empires of the Huns, Turkish people and Uyghur people.
After the founding of the Great Mongolian Empire, Chinggis Khan ordered gold and silver coins to be used as the state currency, and in 1227 the first paper currency in world history was finally issued by the empire. In 1236, the Mongolian Empire introduced the “currency reform” and unified all the different forms, weights and values in a single national currency. Under the rule of Khublai Khan, the “deposit bank” in Khara-Khorum, the capital of the Mongolian empire, was founded and in the 1260s paper banknotes were put into circulation. “Khublai Khan’s Currency” Paper currency was the most reliable currency of its time. However, the Mongolian economy and even culture had deteriorated significantly during the rule of the Qing Dynasty.
After the revolution of 1911, the Mongolian people broke away from centuries of oppression, but it was not until 1921, after the victory of the People’s Revolution, that the newly founded independent Mongolia was given the chance to restore its own monetary system.