At the bank the other day I saw a flyer for their deposit rates. Interestingly, Mongolia has a situation where a large portion of their banking system accepts deposits in USD; a sort of parrallel, less prone-to-inflation currency. So having those two yield curves allows for two interesting comparisons, as per the chart below.
One is the between the two yields offered by the same bank, in different currencies. The yield in Tugriks is higher, and the margin increases a little over time. Some IMF economists did a working paper on Mongolia’s inflation; it’s been a while since I read it, but one thing I do remember is that there’s a regular shock (winter) to food prices, which is unsurprising given how difficult transport must get.
The other comparison is with the US yield curve, taken off the Bank of America CD rates. The fact that the curve is so much higher here suggests that there’s a substantial risk of default in the banking system (or perhaps less trust in the authority’s ability to bail them out).