Mongol Bank president blames petroleum importers
Mongol Bank President L.Purevdorj spoke at a meeting of the Standing Committee on Economics on Tuesday.
He said Mongol Bank had a foreign currency reserve of USD 2.8 billion, USD 290 million of which has been sold to keep the tugrik from falling further against the U.S. dollar. L.Purevdorj said a combination of factors account for the tugrik’s fall, including Mongolia’s foreign trade imbalance. He said the country’s economy is highly dependent on imported goods. He also said Mongolia has been vulnerable from the global economic crisis.
He added that other nations are economizing while Mongolia has a large budget and inflation. He also said Mongol Bank and international banks have warned that inflationary pressure could be higher in 2012 than it was in 2011.
L.Purevdorj stated that the tugrik’s fall is partly, but not entirely, to blame for rising gas prices. He said a liter of gasoline cost MNT 1,200 when the tugrik was MNT 1,450 against the dollar in 2010. He said gasoline prices in Mongolia are 60 to 70 percent higher than the world average. Besides, he said, petroleum importers did not reduce gas prices when the tugrik rate rose from MNT 1,450 to MNT 1,200 in 2010.
He said Mongol Bank had a foreign currency reserve of USD 2.8 billion, USD 290 million of which has been sold to keep the tugrik from falling further against the U.S. dollar. L.Purevdorj said a combination of factors account for the tugrik’s fall, including Mongolia’s foreign trade imbalance. He said the country’s economy is highly dependent on imported goods. He also said Mongolia has been vulnerable from the global economic crisis.
He added that other nations are economizing while Mongolia has a large budget and inflation. He also said Mongol Bank and international banks have warned that inflationary pressure could be higher in 2012 than it was in 2011.
L.Purevdorj stated that the tugrik’s fall is partly, but not entirely, to blame for rising gas prices. He said a liter of gasoline cost MNT 1,200 when the tugrik was MNT 1,450 against the dollar in 2010. He said gasoline prices in Mongolia are 60 to 70 percent higher than the world average. Besides, he said, petroleum importers did not reduce gas prices when the tugrik rate rose from MNT 1,450 to MNT 1,200 in 2010.
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