US Dollar are often accepted, especially in Ulaanbaatar, but it is also useful to carry some cash in the local currency, Mongolian currency is Tugrik that costs 1 dollar 3450 Tugrik in any banks in Mongolia will be more than happy to exchange your currency, as will most of the hotels you will stay in.
Mongolia is the best place to buy cashmere product, sweaters, gloves, scarves, dresses, blanket, etc. As the country is one of the world’s producers of raw cashmere it offers very competitive prices as well as good design and quality. Variety of art crafts and souvenirs attract to foreign travelers. Mongolia has unique nomadic culture and arts.