BoM expects MNT exchange rate to remain stable www.zgm.mn

Loan grants may intensify in the upcoming months as the Bank of Mongolia (BoM) estimates a potential MNT 2 trillion worth credit source in the banking system through central bank’s securities, informs Gan-Ochir Doojav, Director General of Research and Statistics Department of BoM. Mr. Gan-Ochir remarked that the source of credit will mostly be directed at businesses. Statistics show that business loans have activated in the last 2-3 months, while consumer loans declined. The trend is expected to continue for the upcoming months. Business loan, one of the pillars of economic diversification, grew 15.7 percent year over year in the first half. In July, the monetary policy committee of the BoM decided to set the limit of debt-to-income of consumer loans at 70 percent of household income, which take effect on September 1. As a reminder, Mongolia’s benchmark interest rate reached 9-year low following the BoM’s decision to cut interest rate to 10 percent last March.

State harvest doubles last year's amount www.zgm.mn

During the Cabinet’s regular session yesterday, the Minister of Food, Agriculture and Light Industry Batzorig Batjargal presented the preliminary balance of state harvest. The Minister reports that about 497,000 hectares of land have been sowed, of which 367,000 hectares account for grains, 13,000 hectares - potate, 8,300 hectares - vegetables, 69,800 hectares - oil herbs and 38,800 hectares - fodders. Compared to the previous year, the preliminary balance of state harvest grew by 1.2-1.8 times. Mr. Batzorig highlighted that it is necessary to ensure that the harvesting is done according to technology as the maturity of crops was uneven with lots of area under blossoming stage and crops are growing partially due to high precipitation in August. The Ministry of Food, Agriculture and Light Industry plans to harvest 450,000 tons of grains, 425,000 tons of wheat, 151,000 tons of potatoes, 95,000 tons of vegetables, 30,000 tons of oil herbs and 86,000 tons of fodder. Mr. Batzorig informed that wheat potatoes can be fully supplied domestically unless weather and other complications hinder harvest.

Mongolia exports 20 thousand tons of meat as of first seven months www.montsame.mn

Ulaanbaatar /MONTSAME/ As of the first seven months, Mongolia have exported a total of 22971.6 tons of meat including 10735.4 tons of heat-treated meat, 10319.7 tons of horse meat, 775.6 tons of mutton and goat meat, 642.5 tons of beef and 498.4 tons of by-products, earning income worth USD 50.6 million or MNT 124.9 billion.

Mortgage loan financing at over 155 billion MNT since the beginning of 2018 www.gogo.mn

In July, the Bank of Mongolia provided 15.9 billion MNT in mortgage loan financing to commercial banks for 231 mortgage requests, bringing the number of mortgage loan borrowers in 2018 to roughly 2,050.

Coal truck logjam stretches over 85 kilometers at the Chinese border www.gogo.mn

Bayan Zam Transportation Union reported that the logjam of coal trucks at the road from the Tavan Tolgoi mine to the Gashuunsukhait border crossing has created a long queue.

Economic circulation of Tavan Tolgoi under preparation www.montsame.mn

Ulaanbaatar/MONTSAME/ At its regular meeting, the Cabinet was briefed about parliamentary resolution on intensifying actions to be taken for putting Tavan Tolgoi coal deposit into economic circulation and government resolution on the measures to be taken in regard with the 'Erdenes Tavantolgoi (ETT)' JSC.

Mongolia-Russia trade turnover increased by 40 percent www.montsame.mn

Ulaanbaatar /MONTSAME/ On August 28, E.Oyuntegsh, Secretary General of the Mongolian National Chamber of Commerce and Industry (MNCCI) and Ye.V.Averina, Deputy Head of the Chamber of Commerce and Industry of Tyumen Region of the Russian Federation, signed cooperation agreement during the meeting with business people of Tyumen region, co-organized by MNCCI and the Mongolian National Association of Food and Agriculture.

Belt and Road debt trap spreads to Central Asia www.asia.nikkei.com

MOSCOW -- As Beijing bankrolls projects in Central Asia to promote its Belt and Road Initiative, countries in the region are at risk of granting China valuable concessions to ease their heavy debt burdens.

Turkmenistan faces an economic crisis, with reports leaking from the country of long queues snaking outside of grocery stores, one-month waits for flour and road closures by housewives demanding food.

The country's currency is officially quoted at about 3.50 to the dollar, but the manat has weakened rapidly on black markets to 18 or 19, local sources say. In addition to a shortage of daily necessities, the government forced hefty price increases on gas and water. Inflation has hit 300% by one estimate.

Some think the current crisis is worse than the turbulence that immediately followed the Soviet Union's collapse.

Turkmenistan relies on natural gas exports for 70% of its revenue. The nation's drift toward China accelerated in 2009 when it opened a pipeline to the Asian power through Uzbekistan and Kazakhstan while relying on funds from Beijing to fund gas field development and infrastructure construction. The loans total about $8 billion, according to the CIS Institute think tank, with money for repayment coming from gas export proceeds.

But Turkmenistan's revenue from natural gas exports last year was reportedly half the level of 2015 as Russia halted shipments from the country and Iran suspended imports due to a contract dispute. Lax spending on infrastructure and corruption have contributed to the decline in the nation's finances as well. Some predict that Turkmenistan will have to hand over gas fields to China as repayment for its debts.

Central Asian countries are bolstering relations with Beijing as they vie for a piece of the Belt and Road Initiative, which stretches from China to Europe. Borrowing from Beijing has ballooned in all but Kazakhstan, which receives direct investment from various countries, and Uzbekistan.

Neighboring Tajikistan handed over a gold mine to China in April as remuneration for $300 million in funding to build a power plant.

Kyrgyzstan reportedly has a contract with a state-run Chinese bank for a power plant in the capital of Bishkek that includes a clause giving Beijing control of wide-ranging assets if the country defaults on its repayments. China is also thought to be demanding concessions in negotiations for railway construction funding.

Hidden risks in Belt and Road projects came to light after Sri Lanka in 2017 gave China the operating rights to the Hambantota port for 99 years as the island nation struggles to repay debts.

China aims to become the dominant force in Central Asia in order to drive down the price of acquiring resources, said Andrei Grozin, who heads the Central Asia department at the CIS Institute.

Beijing also plans to invest in infrastructure and agriculture projects in former Soviet states like Ukraine that seek integration with the European Union, increasing its influence in Eastern Europe as antagonism between Moscow and Washington grows.

Ukraine and China agreed to $7 billion in joint projects at an intergovernmental commission in late 2017. Construction of highways and grain export bases is progressing.

"A pro-China faction is quietly rising," said a high-ranking Ukrainian official, as investment from the U.S. and Europe slows due to a virtual state of war between Kiev and Moscow.

China is targeting Ukraine's military technology, a field in which Kiev has excelled since the Soviet era. After a Chinese company took a 41% stake in Motor Sich, a manufacturer of engines for military transport vehicles and helicopters, Ukrainian courts froze the deal.

Beijing signed a free trade agreement with Georgia last year and is investing in ports and transportation projects there. The Caucasus republic, along with Ukraine, has a free trade agreement with the EU. Georgia recently opened a railway from Azerbaijan to Turkey that is expected to serve as a vital artery for China's Belt and Road, connecting China and Central Asia with Eastern Europe while bypassing Russia. China is negotiating a free trade agreement with pro-Western Moldova as well.

Moscow seems to tolerate China's growing clout in Russia's sphere of influence. Some think Moscow prefers China to democratic and economic reforms promoted by the U.S. that emphasize transparency and rule of law. Concern exists that more Chinese money will stall Western reforms in these countries.

Aspire to develop low ash coking coal project in Mongolia www.spglobal.com

Singapore — Aspire Mining Wednesday announced plans to develop a new low ash coking coal project in Mongolia.

Mongolia: Riding Reindeer And Hunting With Eagles In East Asia's Most Fascinating Destination www.forbes.com

Let’s start with getting there. Which is no easy feat. (Pro tip: book your flight through Hong Kong and take advantage of the great lounges there. Hello, Cathay Pacific’s six lounges.).

Once you’ve finally arrived in Ulaanbaatar, the country’s capital and the starting point for pretty much all the best adventures, get your last fill of life’s little luxuries – maybe hit the spa, or indulge on Korean barbeque, because life outside of the city is much simpler, but that’s exactly what you’re there for.

And while it’s common that Mongolians in the city speak English, don’t expect much of that once you get outside of the capital. Traveling with a translator is certainly not a bad idea, but you just might surprise yourself with how much communicating you can actually do with simple hand gestures and a few key phrases.

And even though you’ll want to travel here in June, July and August, keep in mind that unexpected changes in the weather, like blizzards in the far north, aren’t out of the question.

So, what makes Mongolia one of the most fascinating destinations in East Asia? Well, these adventures, to start.

Visit the Tsaatan Tribe

Spending time with the Tsaatan Tribe, the last nomadic tribe that herds and rides reindeer in the world, is like something out of a fairy tale. Besides a landscape that goes from beautiful rolling steppe to treacherous bogs and rocky mountainsides in minutes, there’s just something magical about seeing someone ride up to the teepee you’ve made home for a few days on a reindeer. Getting there is no small feat – my journey included a flight from Ulaanbaatar to Mörön, two-days of off-roading in a UAZ-452 Russian furgon, and two-days on horseback. But once you’re there, you’re a part of the tribe. Drinking reindeer milk tea, making noodles, herding in the reindeer at night, milking them in the morning, riding them to visit the neighbors or forage for juniper – it’s one of those experiences that will have you pinching yourself every few minutes.
Go to the Kazakh Eagle Hunters

Wolf-skin cloaked nomads wielding beautiful golden eagles and 4,000 years of tradition – that’s just the beginning of what’s so fascinating, and alluring, about paying a visit to the Kazakh people in the western part of the country. Not to mention, watching as an eagle soars through the air at speeds upwards of 200 mph is pretty bucket list-worthy. Once a year, in the Bayan-Ulgii Province located in the Altai Mountains of Western Mongolia, the Golden Eagle Festival brings out the best Kazakh hunters from the area, pitting them against one another in competitions that test the speed, agility and accuracy of their golden eagles. It’s an experience you won’t find anywhere else in the world.

October’s Golden Eagle Festival (October 6th – 7th, 2018) is an ideal time to visit.

There are plenty of ways to live in Chenggis Khaan’s footsteps (or as we call him in the west, Genghis Khan). You can do a day tour from Ulaanbaatar and get an idea of the history, economy and political climate of Khaan’s day, which is an easy introduction to Mongolia’s past.

But, for those looking for a little bit more (okay, a lot more) adventure, do it right and travel back to the 13th century and take on the steppe by horse. Horses played an integral role in Khaan’s success, thanks to his supply point route messenger system (called the Yam system), which acted as a relay messenger system for horses. Every 14 to 40 miles riders can switch horses (or pass on documents and goods to a fresh rider), eat and find shelter. This is the system that helped Khaan conquer the largest contiguous empire in history, from Eastern Europe to Southeast Asia and China, in his prime.

From Khentii National Park, where the steppe meets the forest, to visiting with a nomadic family in the valley of Jargalant River, trekking through the country this way is certainly one of the coolest (and most bragworthy) ways to experience Mongolia.

Companies like Discover Mongolia offer ‘Follow in the Steps of Genghis Khan’ horse treks.

Cross the Gobi

One of the greatest parts about visiting Mongolia is the diversity that you can find in the terrain across the country. The steppe and the mountains in the north are one thing to experience, but the Gobi Desert in the south is something completely different, and just as spectacular.

The fifth largest desert in the world, and the largest in Asia, the Gobi isn’t all sand – there’s plenty of exposed bare rock here as well, making it one of the most unique (and challenging) terrains you’ll find anywhere. Set off by horseback to cover the most ground and discover wild Bactrian (two-humped) camel, horses and wild gazelle along the way, along with the last desert-inhabiting bear, the Gobi bear.

Stay in traditional gers during your journey (and keep in mind that desert nights can get cold), meeting with nomadic families all along the way, learning about the history and culture of the country firsthand.

You can also take on the desert by van, if horses aren’t exactly your thing.

Nomadic Expeditions leads tours from Ulaanbaatar to the Gobi and back by van.

Travelers interested in visiting the Gobi Desert can cross it by either horse or van. (Credit: Shutterstock)

Motorbike or Road Trip Across the Country

Whether you want to follow the trail of Chinggis Khaan, hightail it across the steppe or set off through the Gobi, there’s no wrong way to see Mongolia. And each of these trails are wildly different – just remember: the only thing you can ever count on here is the unexpected. From the weather to the bumpy terrain across the flatlands of the steppe, barren and unforgiving dessert in the Gobi, and everything in between along the Chinggis Khaan route, this will certainly be an unforgettable adventure for one reason or another.