Friday, June 20, 2014

Mongolian foreign exchange reserves decline to worrying level

Analysts of Morgan Stanley financial services cooperation, Desmond Lee and Gaurav Singhal reported that Mongolia’s foreign exchange (FX) reserves reached 1.7 billion USD by the end of April. However,


Mongolia’s FX reserves were at nearly 2.2 billion USD at the end of February, according to Mongol Bank.

Mongol Bank has not officially published its April report yet. The analysts highlighted that if the FX reserves stay in decline for a few more months, Mongolia will come closer to the two-month import cover, the same point where Mongolia received International Monetary Fund assistance in 2009.

The analysts also pointed out that during this time, when the OyuTolgoi project dispute is not fully resolved and the FX reserves are very low, the Government of Mongolia will have a hard time getting credit again.

Short URL: http://ubpost.mongolnews.mn/?p=10025

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