Mongolia Brief January 15, 2015
President
of Mongolia to Pay State Visit to Czech Republic from January 18, 2015
January 15
(infomongolia.com) President of Mongolia Mr. Tsakhia ELBEGDORJ will be paying a
state visit to the Czech Republic upon an invitation of the President Mr. Milos
Zeman on January 18-20, 2015.
Following the
visit, President of Mongolia will attend the 45th annual meeting of the World
Economic Forum in Davos, Switzerland on January 21-24, 2015.
During the
state visit to the Czech Republic, President Ts.Elbegdorj will have an official
talk with his counterpart Milos Zeman and to meet with the Czech Prime
Minister, the President of the Senate and the Chair of the Chamber of Deputies.
He will address the Mongolia-Czech Business Forum and visit the Center for
Mongolian Studies at the Charles University of Prague. The President will also
meet with Mongolian citizens living and studying in the Czech Republic.
The visit is
coinciding with the 65th anniversary of the establishment of diplomatic
relations between Mongolia and the Czech Republic and it will give impetus
towards deepening and expanding the bilateral relations and cooperation, namely
the cooperation in the field of economics, trade, investment, social welfare
and infrastructure as well as intensifying cooperation in the multilateral
fora.
During the
World Economic Forum 45th annual meeting, President Ts.Elbegdorj will attend
Mining Metal Governors Meeting, Events of Partnering Against Corruption
Initiative, the 2015 World Water Program and participate an informal gathering
of World Economic Leaders.
On the
sidelines of the Forum, President of Mongolia will have bilateral meetings with
some Heads of States.
Related:
President
Ts.Elbegdorj to visit Czech Republic – Montsame,
January 15
President to attend World
Economic Forum – news.mn, January
15
Bank
of Mongolia raises its policy rate
January 15
(news.mn) Bank of Mongolia announced that it raised its policy rate by 1.0
percentage point to 13 percent on Wednesday.
The monetary
policy committee of Bank of Mongolia held a meeting on Wednesday and reached
the decision above with majority votes in a poll.
All 14 members
of the committee and President of the Bank of Mongolia agreed on the decision
to raise its policy rate.
The monetary
policy committee raised its policy rate by 1.5 percentage points to 12.0
percent in July 2014.
In the past two
years there had been positive signs in term of inflation and inflation measured
by CPI which fell to 11 percent.
Due to the
exchange rate of the MNT against foreign currencies, and consumer price
increases with government regulations, the nation's core inflation is high, at
12.6 percent.
The flow of
foreign currency to the economy has not recovered, and foreign direct
investment fell for the third year.
The Bank of
Mongolia reached the decision to support the trade balance of the economy until
the state of foreign trade has improved and the flow of foreign exchange has
increased.
Allowances
for children and mothers will not be cut
January 15
(news.mn) The DP caucus held a special meeting on Wednesday to review the issue
of removing monthly allowances for children, mothers, and recipients of the
Mongolian Mother's Glory Order 1st and 2nd class in the scope of cuts to the
government budget.
At the meeting,
MPs agreed to continue granting allowances for children and the Mongolian
Mother's Glory Order 1st and 2nd class at least.
MPs also agreed
to find resources for increasing public employees’ salaries and pensions.
The government
decided to grant the allowances for children only to targeted groups and to cut
allowances for mothers with the Mongolian Mother's Glory Order whose children
have reached 18 years of age, and not to increase pay and pensions in the
government budget revision bill for 2015. However, parliament has decided to
continue some of the social welfare programs that were considered for cuts.
Public
transportation workers to demonstrate
January 15 (news.mn)
The Mongolian Transport, Communications and Petroleum Workers Union will hold a
press conference today to announce that the Ulaanbaatar Public Transport
Service is calling for a demonstration in order to have their salary and social
welfare issues resolved.
The removal of
allowances granted to Public Transport Service employees from the Ulaanbaatar
City Budget motivated Ulaanbaatar Public Transport Service employees to
demonstrate.
Bus drivers and
conductors of Public Transport Service will report about the decision against
pay increases for employees.
The press
conference is being held at the Confederation of Mongolian Trade Unions today.
Capital
City School Children Will Be Given Smart Pupil’s ID Card
January 15
(infomongolia.com) The City Department of Education in collaboration with the
Union of Mongolian Secondary Schools' Students have decided to issue a smart ID
card, relied on latest technology and complies international standards, to 138
thousand pupils of the capital city schools.
According to
officials, a Pupil’s Card of the City will cost 1,400 MNT (Tugrug), which is
effective three years from the date of allocation and will be given to pupils
from January 27, 2015.
The Pupil’s
Card will not only include a complete information, but also can be used as an
ID to enroll any training centers or public events at discounted prices or free
as well as present in public transportations for free ride being implemented
under “Smart School” Program.
Moreover, City
Department of Education and Union of Mongolian Secondary Schools’ Students have
been partnering with Urgoo Cinema that allows pupils with new ID card to have
20-50% discounts on each movie.
Besides,
“Khaan” and “Monre” insurance companies pledged to install for free the Pupil’s
Card reader machines at all schools designated and “Kewiko” company, a wireless
internet service provider, provides with a free access to any on-line trainings
and at discounted prices to other internet services.
MP
meets IFC resident representative
By B.
Amarsaikhan
Ulaanbaatar,
January 15 (MONTSAME) A member of Parliament J.Batzandan received Thursday the
resident representative of the International Financial Corporation (IFC) to
Mongolia Mr Tuyen Nguyen, at the latter’s request.
Mr Nguyen
informed that the IFC and the Ministry of Justice of Mongolia has signed a
Memorandum of Understanding on Technical Assistance for creating the virtual
environment for legal enforcement in case of the adoption of the draft law on
Immovable property and Intangible asset mortgages. He also noted that over 30
countries adopted such laws and the results are satisfactory.
Mr Batzandan MP
said he is putting his efforts on the development of the draft law on Immovable
property and Intangible asset mortgages and shared his opinion on the
cooperation with the IFC on the enforcement of law, if adopted.
The draft law
was submitted to the Parliament in June, last year, on the motives that
Mongolia faces an urgent need to promote through mortgage loans the economic
circulation of immovable and transferable intangible assets such as stocks,
treasury bills, receivables, intellectual properties, and to facilitate such
relations with an adequate legal environment in Mongolia.
Irregular
cabinet meeting runs
By B. Khuder
Ulaanbaatar,
January 15 (MONTSAME) At its irregular meeting on Thursday decided to withdraw
a draft amendment to the law on budget stability which submitted to parliament
on Monday, and reflect a clause in it about minimizing the total amount of debt
in the GDP in several phases.
The amount of
both domestic and foreign debt expressed a current value will not exceed 60% of
the GDP in the budgetary year of 2015, 55%--in 2016, 50%--in 2017, and 40%--in
2018, in accordance with the amendment to the law.
“Drunk
Drivers and Children’s Lives” discussion held
By B.
Amarsaikhan
Ulaanbaatar,
January 15 (MONTSAME) Such discussion was held at the State House on January 15
organized by the women members of the Parliament. Representatives of the
Ulaanbaatar Traffic Police Department, the Traffic Police Department, the
Transport Prosecutors’ Office, the University of Law Enforcement, the Ministry
of Justice, and of the Society for Traffic Safety attended the discussion to
voice their views.
A member of
Parliament L.Erdenechimeg mentioned in her opening remarks that the
ever-increasing number of vehicles results in increased number of traffic
accidents, and that the number of such accidents reported in Ulaanbaatar in
2014 amounted to 26678, which indicated increase by 76.5 percent against the
previous year. She also noted that the administrative accountability is too
light towards the “drinking and driving” offenders.
Present at the
discussion were M.Batchimeg, D.Sarangerel, Ts.Oyungerel, G.Uyanga,
Z.Bayanselenge and S.Odontuya MPs.
Ms D.Sarangerel
MP suggested raising more awareness and information access, providing targeted
trainings rather than tightening up the accountability systems, whereas
M.Batchimeg MP presented about the renovation of the script of the Law on
Traffic Safety, and gave brief information on the amendments to be made.
Other lectors
included the Colonel E.Bokhbat, the head of the Ulaanbaatar Division for Crime
Preventions, and D.Bayarmagnai, a prosecutor at the Transport Prosecutors’
Office.
Vice
Speaker of Turkey visits Mongolian Embassy
By B. Khuder
Ulaanbaatar,
January 15 (MONTSAME) Vice Chairman of the Grand National Assembly (parliament)
of the Republic of Turkey Mr Sadik Yakut Wednesday legged the Embassy of
Mongolia in Turkey.
The Ambassador
Extraordinary and Plenipotentiary of Mongolia to Turkey Mr B.Batkhishig briefed
about a policy of the newly formed cabinet of Mongolia and goals of the
Mongolia-Turkey relations for this year, and then asked the Vice Speaker to
augment investments to be made to Mongolia and to tackle an issue of a soft-loan.
Mr Sadik Yakut
expressed his satisfaction with a sustainable development of the
inter-parliamentary ties, and said he will convey requests of the Mongolia to
his country’s parliament and to seek an opportunity to realize them.
Visited
Mongolia several times, Mr Sadik Yakut is one of the Turkish influential
politicians to focus big attention to the Mongolia-Turkey ties and cooperation
and increasing loans and assistance for Mongolia.
Academician
D.Tserensodnom receives prize
By B. Khuder
Ulaanbaatar,
January 15 (MONTSAME) Director of the Research Center for “Secret History of
Mongols” at the Institute of Linguistics of the Academy of Sciences and
academician Ts.Tserensodnom has received a gold medal of the Permanent
International Altaistic Conference.
The medal
granting ceremony took place on Wednesday in the Presidium’s Department of the
Academy of Sciences. Mr Tserensodnom became the second Mongolia to be awarded
with the gold medal. Before him, the award went to late B.Rinchin.
English
language Olympiad concluded
By B. Khuder
Ulaanbaatar,
January 15 (MONTSAME) The 12th English language Olympiad named after “Hobby”
school was concluded on Wednesday.
The Olympiad’s
main purposes are to challenge English language knowledge and skills of school
pupils and their teachers, and to bring the English language training quality
into international standards in times of increasing number of people to learn
English.
The contestants
took English tests in grammar, writing and speaking modules, and the tests were
checked by the organizers together with the Education Assessment Center, using
an automatic machine.
This year’s
Olympiad added a new division of teachers, attracting 24 teachers from 19 urban
and local schools. Moreover, the Olympiad brought together 1,049 pupils from 78
state-owned and private schools.
Mongolian
population rises by 2.2 percent
By B.
Amarsaikhan
Ulaanbaatar,
January 15 (MONTSAME) In 2014, the population of Mongolia reached 2995949,
which indicates an increase by 65672 people or 2.2 percent compared to the
previous year, reports the National Statistics Office.
Out of 82839
children born in 2014 at the national level, 1124 or 14 percent were born
overseas. A total of 81228 mothers delivered children and the number of live
births amounted to 81715, in 2014. The number of the mothers increased by 1857
or 2.3 percent and that of the children showed increase of 1935 or 2.4 percent,
compared to the previous year.
Infant
mortality rate reached 1251 deaths, increasing by 85 children or 7.3 percent,
and mortality rate for children under the age of five reached 1505, increasing
by 67 or 4.7 percent, compared to 2013.
Mongolia
received its two-millionth citizen on July 11 of 1988, and expects the
three-millionth citizen in 2015.
Authority
of Mineral Resources to Grant Exploration License for 20% of Total Territory of
Mongolia
January 15
(infomongolia.com) The Authority of Mineral Resources announces to accept
paper-requests for exploration licenses starting from January 26, 2015.
According to
statement, exploration licenses will be allocated to 19.9% of total territory
of Mongolia or 31 million ha, of which 13.4% or 20.9 million ha will be issued
by accepting applications and the rest of 6.5% or 10.1 million ha will be
issued under selection.
Applications
for licenses will be received and dealt with “One Window” service and order
numbers will be given on-line.
The second
option of selecting applicants will be conducted under competitive procedure,
which is common in international practices. In other words, bidders will be
selected under 100-point criteria, where the highest bidder will be given up to
50 points and remaining 50 points will be considered the developed project to
execute on the land as well as staff skill and experience and how well equipped
with techniques and equipment, etc.
Related:
License
proposals to be received soon – Montsame,
January 15
MP
G.Batkhuu asked to investigate S.Zorig's murder case
January 15
(news.mn) In Wednesday's meeting of the Standing Committee on Security and
Foreign Policy MP G.Batkhuu was re-elected as head of the sub-committee of the
Standing Committee.
At the meeting,
MP S.Oyun asked G.Batkhuu to pay attention to the still unsolved assassination
of Mongolian Member of Parliament Sanjaasuren Zorig, which occurred under
circumstances that strongly suggested a political or financial motive.
Sister of
Sanjaasuren Zorig, MP S.Oyun said that there had been a working group to focus
on the case organized by the sub-committee under the previous parliament.
Mongolia
and France to Collaborate Closely in Energy Sector
January 15
(infomongolia.com) On January 14, 2015, Minister of Energy Mr. Dashzeveg ZORIGT
received in his office the Ambassador Extraordinary and Plenipotentiary of the
French Republic to Mongolia, Mr. Yves Delaunay.
At the
beginning of meeting, Ambassador Yves Delaunay mentioned there are plenty works
to celebrate the 50th anniversary of the establishment of diplomatic relations
between the two countries that marks in 2015, and said the second
Mongolia-France intergovernmental working group meeting focused on economic
partnership was successfully held in Ulaanbaatar last year, where French
leading companies in energy industry had attended. In this regard, French
Ambassador invited the Energy Minister D.Zorigt to participate in the third
working group meeting to be hosted in France in the second quarter of this
year.
Minister
D.Zorigt noted that the GDF Suez S.A., a French multinational electric utility
company, won the bid to construct the Thermal Power Plant No.5 in Mongolia and
expressed his hope the project would be successfully accomplished. In addition,
the GDF Suez is participating in the "Tavan Tolgoi Power Plant" mega
project, a 450 MW coal-fired power plant in the Tavan Tolgoi area in Umnugovi
Aimag.
Furthermore,
Energy Minister D.Zorigt expressed his interest to collaborate with France to
receive short and medium term scholarships on preparing engineers and technical
staff in energy sector, besides, to involve French public and private entities
in new projects to implement in Mongolia as well as to acclimatize modern and efficient
cost techniques and technology in renewable energy industry.
In response,
Ambassador Yves Delaunay pledged to consider proposals and work closely with
the Ministry to undertake above mentioned issues.
Mongolian
Photographer to Display “A Land of Nomads” Photo Exhibition in Buryatia
January 15
(infomongolia.com) Starting from January 17, 2015, a photographer from
Mongolia, Mr. Balgantseren BAYAR is opening his photo exhibition “A Land of
Nomads” at the National Museum of the Republic of Buryatia.
B.Bayar is a
well-known photographer in his country and displayed his solo exhibitions in
Tokyo, Saitama and Yokohama cities of Japan.
In his
interview in Buryatian press, the photographer said, “I have journeyed across
the Mongolian territory since 2000 and then I understood that the most
beautiful places and moments must be saved on camera and I purchased my first
“Nikon” camera in 2007. In the past eight years I have been and shooting in 27
countries.
While being
here I have pictured the beauty of Baikal Lake and architectural structure in
Ulan-Ude city. The natural environment in Buryatia reminded me my country’s
Khuvsgul Lake. Nevertheless, many relatives of mine are living here and hope to
meet them during my staying and the reason to exhibit is considered as the
Republic of Buryatia as my second home country”.
Mayor
Meets “Smart Bus” Project Group
By B. Amarsaikhan
Ulaanbaatar,
January 15 (MONTSAME) Mayor and the Governor of Ulaanbaatar Mr E.Bat-Uul
received Thursday a delegation led by the president and CEO of “Korea Smart
Card” Co.,Ltd. Mr Dae Sung Choi, and representatives of a Mongolian-S.Korean
joint “Data Card” consortium.
The Consortium
inked an agreement with the Ulaanbaatar Administration last September, for introducing
an online information system into the public transport of the city. In a scope
of this framework, the company intends to start the implementation of a project
on renovation of the public transport, informed the delegation to the Mayor and
gave status report on the preparation, future plans and system structure of the
project.
The project
consists of three main categories: development of monitoring system, reporing
system and automated ticket system. Mongolian “Top” Group, “Nama Och”, “Data
Card Service”, “G-Mobile”, and Trade Development Bank, and Korean “Korea Smart
Card”, “Zeus”, “Amola”, “Fores” KSCC Companies have jointly formed the consortium.
The Mayor said
at the meeting that the adequate development of the public transport is
necessary in relieving the expected pressure in the city traffic due to the
increased number tourists, especially Russians, to visit Ulaanbaatar.
Budget
Stability Law Draft Amendments Passed to First Discussion
By B.
Amarsaikhan
Ulaanbaatar,
January 15 (MONTSAME) A renewed version of the draft amendments to the law on
Budget Stability is transferred to its first discussion by the Parliament, with
an approval vote of 79.7 percent on Wednesday plenary meeting of the State
Great Khural. The draft was presented to the Speaker on January 14 by the head
of the Cabinet Secretariat S.Bayartsogt MP.
Earlier, the
same day, the Standing committee on Budget supported submitting the draft to
the Parliament. The Minister of Finance J.Erdenebat presented the introduction
of the draft on the plenary meeting. He informed that the draft offered changes
to reach a debt level of GDP 40 percent by 2018, through a certain sequence of
measures towards reducing the level of State debt. This was developed on the
motives that the debt is estimated to reach 55 percent of the country’s total
GDP, assumed by current values. The draft also outlines special regulations
aimed to limit the balanced deficit in the Master budget, which is estimated to
reach five percent of the total GDP of 2015, within four percent in 2016, three
percent in 2017 and within two percent or less of the total GDP to be produced
in 2018.
Recommendations
and suggestions by the Standing committee on Budget were presented by
D.Gankhuyag MP, which was followed by Q&A. After this, the Minister of
Finance J.Erdenebat said he intends to send the latest detailed report on the
debts of Mongolia to the political factions and independent members of the
Parliament.
Prime Minister
Ch.Saikhanbileg said that the Government will no longer take short-term
commercial credits, and suggested the Parliament t discuss obtaining of the
10-40 year-term loans. He also noted that the Government will issue guarantee
in cases of the private sector investments to State-led programs and
activities.
CPI
Increases
By B. Khuder
Ulaanbaatar,
January 15 (MONTSAME) The national consumer price index increased by 0.8 per
cent in December 2014 from the previous month, by 11.0 per cent against
beginning of the year.
An increase of
0.8 percent was mainly due to increases of 1.1 percent in food and
non-alcoholic beverages, and 1.5 percent in clothing, footwear and cloth.
Bank
of Mongolia Reports
By B. Khuder
Ulaanbaatar,
January 15 (MONTSAME) Loans outstanding 2014 amounted to MNT 12.5 trillion at
the end of December, decreasing by MNT 145.8 billion or 1.2% from previous
month, and increasing by MNT 1.7 trillion or 16.1% against the previous year.
Principals in
arrears reached MNT 269.5 billion at the end of December2014, going down by MNT
175.2 billion or 39.4% from previous month, whereas it went up by MNT 151.1
billion or 2.3 times against the previous year.
At the end of
December 2014, the non-performing loans over the bank system reached MNT 625.7
billion, increasing by MNT 5.7 billion or 0.9% from the previous month, by MNT
59.9 billion or 10.6% against the previous year.
52.2 million
shares were traded valued at MNT 196.3 billion in the stock market. The
securities trading declined by MNT 202.8 billion or 50.8% and shares decreased
by MNT 13.9 million shares or 21.0% against the previous year.
Stock
Exchange News for January 15
By B. Khuder
Ulaanbaatar,
January 15 (MONTSAME) At the Stock Exchange trades on Thursday, a total of 20
thousand and 151 units of 18 JSCs were traded costing MNT eight million 936
thousand and 914.
"Remikon”
/10 thousand and 213 units/, “Khokh gan” /5,010 units/, “Genco tour bureau”
/1,601 units/, “Germes center” /1,237 units/ and "State Department Store”
/1,047 units/ were the most actively traded in terms of trading volume, in
terms of trading value were "Darkhan nekhii” (MNT four million 447
thousand and 940), "Gutal” (MNT 950 thousand), “Remikon” (MNT 919 thousand
and 170), “Mongol makh expo” (MNT 650 thousand) and "State Department
Store” (MNT 596 thousand and 790).
The total
market capitalization was set at MNT one trillion 412 billion 997 million 953
thousand and 408. The Index of Top-20 JSCs was 14,611.31, decreasing 109.54
units or 0.74% against the previous day.
Unemployment
Rate and Number of Students
By B. Khuder
Ulaanbaatar,
January 15 (MONTSAME) The number of unemployed reached 37.0 thousand at the end
of December 2014, showing a decrease of 5.8 thousand people or 13.6 per cent
compared with the same period of the previous year.
As of the
beginning of 2014/2015 academic year, the number of students and pupils in all
levels of educational institutions reached 933.5 thousand people, increasing by
25.9 thousand people 2.8 per cent against to the previous year.
Livestock
Population Reaches 52 Million
By B.
Amarsaikhan
Ulaanbaatar,
January 15 (MONTSAME) As of the end of 2014, 52.0 million livestock were
counted at the national level, of which three million horses, 3.4 million
cattle, 349.3 thousand camels, 23.2 million sheep and 22 million goats.
The total
number of livestock increased by 6.8 million heads or 15.1 percent compared to
the previous year, in specific, the number of horses -- by 376.4 thousand or
14.4percent, of cattle – by 504.4 thousand or 17.3 percent, of camel -- by 27.8
thousand or 8.6 percent, of sheep -- by 3.1 million or 15.7 percent, and of
goat by 2.8 million or 14.5 percent.
In 2014, 401.4
thousand heads of full-grown livestock had been lost, which amount equals to
0.9 percent of total livestock as counted at the beginning of the year.
Social
Insurance Sector
By B. Khuder
Ulaanbaatar,
January 15 (MONTSAME) Last year, the Social Insurance Fund’s (SIF)revenue
amounted to MNT 1,387.2 billion, reflecting an increase of MNT 120.0 billion or
9.5% and the SIF’s expenditure reached MNT 1,301.1 billion, increasing by MNT 246.9
billion or 23.4% against the previous year.
Total of MNT
142.5 billion was granted to 208.5 thousand people for pensions and welfare benefits
from the Social Welfare Fund. The number of people who received pensions and welfare
allowances increased by 9.9 thousand or 5.0%, and an amount of pensions and allowances
increased by MNT 0.6 billion or 0.4% against the previous year.
MNT 238.4
billion was granted from the Human Development Fund to 994.1 thousand children
aged below 18 as a cash benefits.
World
Bank conference on mining infrastructure support
By G. Orkhon
January 15
(Mongolian Economy) The majority of Mongolian mines are located in the Gobi
region. To operate, the mines use non-renewable groundwater. Tuesday the World
Bank held a conference on mining support infrastructure for the region in Ulaanbaatar.
During the
conference, project coordinator B.Enkhbaatar emphasized the water supply issue
in Mongolia’s mining sector development, describing the importance of creating
a water circuit basin in order to reuse the used water. A World Bank senior
social development specialist in charge of the urban, rural and social
development, Dr Warren Paul Mayes Evans said: “In the world, the mining sector
receives many complaints related to earth and water. That’s why raising matter
should be cleared by related regulation and information should be widely given”
The conference
stressed the need for the government, private enterprise and citizens to
actively participate in mining infrastructure development. Companies and
organisations presently leading extraction are to provide genuine information
to citizens. S.Bayantsetseg, a specialist at the department of environmental
evaluation and auditing at the Ministry of Environment, explained that the
evolution of environmental evaluation should be reported as well. Any lack of
participation among mining sectors actors, results in issues like
misinformation and inefficiency.
The World Bank
granted Mongolia a USD 25 million development loan for mining infrastructure in
2011. The majority of the loan goes toward mining infrastructure preparation
work: design, feasibility and environmental studies. In addition, Baganuur coal
mine, the main energy supplier for the mining sector, is to increase its coal
reserve to 6 million tonnes. A research study financed by the World Bank loan
concluded the former mine reserve of about 3 million tonnes to be out of date,
as the last evaluation occurred in 1978. Shuren Water Power Plant, which will
use the Selenge River to run, and the Orkhon River project are now in
preparation process.
Bank
of Mongolia: Monetary Policy Statement, January 15, 2015
January 15
(infomongolia.com) On January 14, 2015, the Monetary Policy Committee (MPC) of
the Bank of Mongolia (Mongol Bank) announced to increase the policy interest
rate by 1.0 percentage point to 13%, which is effective from January 15, 2015.
So, today, the
Bank released the official Monetary Policy Statement and it cites, “Although,
annual inflation measured by CPI declined to 11.0% nationwide at the end of
2014 owing to sustainable positive change in the composition of inflation over
the last two years, core inflation remains high at 12.6% due to impacts of
exchange rate fluctuation and increase in administered prices. In addition,
foreign exchange inflows remain muted and foreign direct investments have been
deteriorating for the third consecutive year.
Therefore, the
MPC took this policy action to support external macroeconomic balance through
increasing MNT (Tugrug) yield until signs of improvement on terms of trade
condition and foreign exchange inflows are noted.
The decision
shall positively affect reducing aggregate demand and current account deficit
in the short term, maintaining inflation at low and stable level, and promoting
macroeconomic and financial stability”.
Monetary Policy
Committee
Bank of
Mongolia
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