Mongolia operates as a cash-heavy dual-currency economy where the tögrög (MNT) serves as official tender while US dollars facilitate large transactions and tourism services. As of 2024, exchange rates fluctuate between 3,400-3,500 MNT per USD, though rates shift monthly based on commodity exports and Chinese economic activity. Banks in Ulaanbaatar—including Trade and Development Bank, Khan Bank, and Golomt Bank—offer competitive rates with 1-2% margins above interbank rates. Currency exchange booths cluster around Sükhbaatar Square and the State Department Store, operating 09:00-20:00 daily with slightly worse margins of 3-5%. ATMs dispense tögrög in denominations up to 500,000 MNT per transaction, with daily withdrawal limits of 1,000,000-2,000,000 MNT depending on bank and card type. International cards work reliably in Ulaanbaatar but fail regularly in secondary cities like Erdenet, Darkhan, and Khovd, where cash remains effectively mandatory. Credit cards function in major hotels and restaurants in the capital but incur 3-5% surcharges even when accepted. Outside Ulaanbaatar, the payment infrastructure collapses entirely—countryside ger camps, local guides, and provincial shops operate exclusively in cash, requiring travelers to carry substantial tögrög reserves when leaving the capital.
Accommodation costs stratify sharply by location and season. In Ulaanbaatar, dormitory beds in hostels along Peace Avenue range 15,000-25,000 MNT per night during summer (June-August) and drop to 10,000-18,000 MNT from October through April. Budget guesthouses in the capital charge 35,000-60,000 MNT for basic doubles with shared bathrooms, while mid-range hotels with private facilities command 80,000-150,000 MNT. International chains including Shangri-La Ulaanbaatar and Best Western Premier Tuushin Hotel price rooms at 250,000-450,000 MNT, with significant discounts available during winter when tourism drops by approximately 75%. Outside the capital, ger camps constitute the primary accommodation infrastructure across the countryside. These tourist camps charge 80,000-150,000 MNT per person per night including three meals, with prices peaking during Naadam Festival in July when advance bookings become essential. Budget travelers can arrange homestays with herder families for 30,000-50,000 MNT per night through local intermediaries, though this requires language skills or guide assistance. In secondary cities like Mörön, Bayankhongor, and Choibalsan, Soviet-era hotels offer spartan rooms for 25,000-45,000 MNT, frequently with intermittent water supply and heating failures during winter months when temperatures drop below -30°C.
Food expenses depend entirely on dining location and cuisine type. Mongolian canteen meals in Ulaanbaatar cost 5,000-8,000 MNT for substantial portions of buuz (steamed dumplings containing mutton and onion, typically six pieces per order) or khuushuur (fried meat pastries, three pieces). A bowl of guriltai shul (noodle soup with mutton and vegetables) runs 6,000-9,000 MNT in local restaurants, while chanasan makh (boiled mutton served plain) costs 2,500-4,000 MNT per kilogram when purchased at markets and cooked in guesthouses with kitchen access. Mid-range Mongolian restaurants serving khorkhog (mutton barbecued with heated stones in a sealed milk can) charge 15,000-25,000 MNT per person for group meals requiring advance orders. International cuisine commands premium pricing—Korean restaurants along Seoul Street charge 18,000-35,000 MNT for entrees, while Western-style cafes near Sükhbaatar Square price pasta and burgers at 22,000-40,000 MNT. Coffee culture has expanded dramatically since 2015, with espresso drinks costing 6,000-10,000 MNT at chains like Tom N Toms Coffee and indie shops in the capital. Supermarkets including Nomin and Orgil stock imported goods at prices 150-300% above equivalent items in origin countries—Australian beef sells for 18,000 MNT per kilogram while local mutton costs 9,000-12,000 MNT. In countryside areas, food options narrow to ger camp meals (included in accommodation rates) or purchases from small shops selling instant noodles (1,500-2,500 MNT), boortsog (fried dough cookies, 3,000-5,000 MNT per bag), and aaruul (dried curds, 2,000 MNT per 200g package). Travelers avoiding meat face significant challenges—vegetable availability drops precipitously outside Ulaanbaatar, and traditional cuisine centers almost exclusively on mutton, beef, and dairy products.
Local transportation within Ulaanbaatar operates through an extensive but crowded bus network. City buses charge flat fares of 500 MNT per ride regardless of distance, accepting cash from conductors who circulate through packed vehicles during rush hours. Trolleybuses running on fixed routes cost the same 500 MNT but operate less frequently. Taxis dominate practical transportation for foreigners—official metered cabs start at 3,000 MNT and charge approximately 1,000 MNT per kilometer, while unofficial taxis negotiated on the street typically demand 1,500-2,000 MNT for trips within central districts and 3,000-5,000 MNT for longer hauls to outlying neighborhoods. Ride-hailing apps including UBCab and Messenger have gained adoption since 2020, offering transparent pricing approximately 20% below street negotiation rates. Between cities, public buses provide the cheapest overland option—Ulaanbaatar to Erdenet (374 km) costs 25,000-30,000 MNT on standard buses departing from Dragon Bus Station, with journey times of 6-8 hours depending on road conditions and breakdown frequency. Ulaanbaatar to Kharkhorin (370 km) runs 22,000-28,000 MNT with similar timing. Shared taxis (mikrs) charge per seat rather than per vehicle—Ulaanbaatar to Darkhan (220 km) costs 15,000-20,000 MNT per person with departures when four passengers accumulate, reducing travel time to approximately 3 hours but requiring flexible scheduling. Private vehicle rental through companies like Juulchin Tourism starts at 350,000-450,000 MNT per day for 4WD vehicles including driver and fuel, essential for reaching remote areas where public transport doesn't operate. The Trans-Mongolian Railway connects Ulaanbaatar to Beijing and Moscow—hard sleeper berths to the Chinese border at Zamyn-Üüd (750 km) cost 45,000-65,000 MNT with departures twice weekly, while routes north to Sükhbaatar on the Russian border run similar prices.
Domestic flights connect Ulaanbaatar with 15 provincial centers through Hunnu Air, Aero Mongolia, and Eznis Airways. One-way tickets from Ulaanbaatar to Ölgii in western Mongolia range 180,000-280,000 MNT with flight times of 2.5 hours compared to 3-4 days by road. Ulaanbaatar to Khövsgöl Nuur via Mörön costs 150,000-220,000 MNT, cutting overland travel from 18-24 hours to 90 minutes. These provincial flights operate small propeller aircraft seating 20-40 passengers, with schedules heavily dependent on weather conditions and frequent cancellations during winter storms. Booking 2-4 weeks ahead yields prices 30-40% below walk-up fares, though summer flights (June-August) sell out entirely weeks in advance during peak tourism season. Baggage allowances restrict travelers to 15 kg checked plus 5 kg carry-on, with excess charges of 10,000 MNT per additional kilogram making these flights impractical for camping equipment without advance baggage purchase.