Mongolia reported 55 new cases of COVID-19 infection, including 45 in Ulaanbaatar and 10 in regions, the Health Ministry said on March 24.

93 hospital patients are in mild condition, 253 are in moderate condition, 57 are in serious condition and 19 are in very serious condition.

No new deaths from COVID-19 were reported in the country during the past day. The death toll stands at 2,108.

The Cabinet discussed how the Russia-Ukraine crisis has been affecting Mongolia's economy at its regular meeting on March 23, reported Minister of Finance B.Javkhlan.

“At each of the Cabinet meetings, corresponding ministries have been presenting possible ways to keep the negative effect caused by the Russia-Ukraine conflict at a minimum. Sanctions that have been imposed against Russia are also indirectly affecting the situation in our country to a certain extent.

As it may affect our economy through several channels, the first issue at hand is foreign trade. Petroleum makes up 75 percent of the products being imported from Russia.

Rosneft is currently supplying petroleum products according to the agreement. From our side, importers have been making their payments without any issue. As USD 180 million worth of petroleum has been purchased since February 24, we will put in efforts into continuing to keep this amount.

In terms of foreign policy, Mongolia continues to keep the same stance as when we voted to abstain during the recent UN resolution.

Furthermore, the policy on maintaining foreign exchange reserves and supporting exports will continue to be implemented."

At a regular meeting of the Cabinet on March 23, Minister of Health S.Enkhbold did a presentation on the preparations underway for the works to be carried out to involve citizens in early-detection checkups from May 1.

Adults will be involved in 19 types of medical checkups.

The medical checkups that are being planned include the diagnosis of cardiovascular disease, diabetes, and tuberculosis, assessment of mental and general physical health, blood and urine tests, glucose, pap smear, hepatitis B and C, rapid tests for syphilis and HIV, electrocardiogram, endoscopy, gastroscopy, and ultrasound tests for the chest and abdominal areas as well as thyroid.

As for children up to the age of 18, they will be involved in six types of medical checkups. This will include diagnosis of non-infectious diseases, mental health assessment, dental checkup, eye exam, and tuberculosis test.

While an average of MNT 11.2-12.3 million is spent for the treatment of a single patient, it is estimated that costs are able to be significantly saved by annually involving citizens in MNT 150 thousand worth of tests and diagnosis.

The iron ore price rose on Wednesday despite the decision by top steelmaking city Tangshan to implement a temporary lockdown.

The Tangshan government implemented the lockdown on Tuesday to avoid further cases of covid-19 as infections surged, the local government said in a statement.

“Although consumption for steel products are relatively sluggish, production is also falling,” analysts with Huatai Futures wrote in a note.

The situation of tight raw materials inventories has not been reversed yet, which could further sustain steel prices, analysts added.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $145.49 a tonne on Wednesday, up 1.4% compared to Tuesday’s closing.

Steelmaking ingredients on the Dalian Commodity Exchange were mixed after falling more than 3% during the night session, with benchmark iron ore edging up 0.4% to 823 yuan a tonne.

“Due to transportation disruptions, most steel mills face raw material shortages … and there’s even possibility for production halt,” said Huatai Futures, noting that iron ore demand will be dampened.

($1 = 6.3743 Chinese yuan renminbi)

(With files from Reuters)

The economic ramifications of Russia's invasion of Ukraine and the West's imposition of heavy sanctions on Moscow in response to it are starting to unsettle Mongolia.

Four days after Russia invaded Ukraine on February 24, the governor of the Bank of Mongolia (BoM), Lhagvasuren Byadran, told reporters that the national lender boasted $4.3bn in reserves as of the start of 2022, and that the reserves were more than enough to cover seven to eight months. Yet there have been instances of bank customers blocked from making foreign payments of more than Mongolian tughrik (MNT) 4mn (less than $1,700) and prevented from obtaining more than $1,000 per day.

Customers were informed by their banks that the central bank had set limits on foreign exchange transactions. However, on March 21, BoM provided a statement to Ikon, a local news agency, in which it said that there was no limit placed on FX. It stated: "The Bank of Mongolia has not imposed any limits on foreign exchange transactions. It is misleading for the managers of these banks to convince their clients that the Bank of Mongolia has placed such limits. The Bank of Mongolia will send a warning to the banks that have decided to restrict foreign exchange."

BoM suggested that individuals banks may have set their own limits on the amount of dollars that can be withdrawn, taking account of their internal reserves.

Whatever the facts here, there is no doubt that the Ukraine crisis is putting Mongolia's economy to the test. Inflation has hovered around 13% since January and in February it topped 14%. The central bank said in early January that inflation would move down as soon as exports picked up again, but China’s strict “zero-covid” policy continues to make it difficult for Mongolia to ship minerals and coking coal to its giant neighbour, putting a big dent in the country's economic performance.

Since the start of the Ukraine war, the MNT has dramatically depreciated from 2,842 to the USD to 2,910. Given global price hikes, the central bank is now examining the next step it could take to ensure that the national currency does not depreciate further. It remains adamant that it does not want to deploy reserves to strengthen the tughrik. But the situation is worsening. Some FX outlets have stopped selling dollars or are selling for at least MNT 3,100.

There are also tales of people swapping huge sums of rubles for USD.

At a press conference called to address public anxiety over inflationary pressures, Lhagvasuren said: “Uncertainty has arisen in the economy. In 2021, the balance of payments showed a deficit of $220mn. This year we started out in the first month with a $500mn deficit. This was due to a growth of imports, post-Covid economic growth. And with this war it is certain that the balance of payments will be in deficit by the end of the year.”

After the conflict broke out, and Russia's ruble sank in the face of the sanctions response, some Mongolian economists called for the exchange of rubles to be stopped, but BoM did not issue an ordinance. The central bank, though, has made it clear that the exchange of rubles in the country has increased since the invasion. It said: "If we look at the average amount of ruble transactions from 2019 to the present, a maximum of $30mn in rubles has been used for payments and exchanges in the country [on a monthly basis]. A total of $92mn worth of ruble transactions were made from the beginning of this year till March 18. Also within this time, the amount of rubles purchased amounted to $4.2mn. This shows that the amount of rubles bought by banks on the domestic market is much lower than the amount sold."

To preserve the reserves, BoM is working on limitations—one restriction could see limits placed on the importing of luxury goods including cars—and will monitor certain transactions. “Only by supporting exports will we be able to have certain foreign exchange reserves. Steps need to be taken to bring mining products to the market. At today's auction, banks applied for $162mn, but we submitted $50mn,” the central bank noted on March 22.

Banks, the central bank said, used to send in information on FX payments once a month. “However,” Lhagvasuren added, “we now receive daily information on any transactions worth more than $50,000, to exercise control over the purposes for which [hard] currency is transacted to abroad. A contingency plan is required if the MNT continues to depreciate."

Lhagvasuren also suggested that for Mongolia to maintain steady economic progress, the government must postpone some of its objectives. “Some of the state budget investment needs to be postponed this year,” he said. “There is a need to reduce costs that can't be borne, [such as with] construction work that has not yet been commissioned.”

BY Anand Tumurtogoo in Ulaanbaatar

March 23 (Xinhua) -- From 2018 to the end of February 2022, a total of 364,000 tonnes of fruits and vegetables were exported from China to Mongolia via the border port of Erenhot in north China's Inner Mongolia Autonomous Region, according to the Erenhot Customs.

The total trade value of fruit and vegetable exports to Mongolia through the port reached 423 million yuan (about 66.4 million U.S. dollars).

In 2018, a green channel for agricultural products was launched, which has since been putting more than 30 kinds of fruit and vegetables, including apples, oranges, lemons, onions, peppers and cucumbers, on the tables of Mongolian people.

Thanks to this green channel, the average customs clearance time for fruit and vegetable exports has been reduced to 30 minutes.

Erenhot, the largest land port on the China-Mongolia border, supplies about 80 percent of Mongolia's fruit and vegetables.

Deputy Prime Minister of Mongolia S.Amarsaikhan received ADB Country Director for Mongolia Pavit Ramachandran, ADB Senior Urban Development Specialist A.Heckmann and Ger areas development project coordinator D.Avirmed.

Over the past 28 years, the Asian Development Bank has issued a total of USD 3.9 billion in funding to Mongolia by providing substantial support in wide range of areas including education, health, society, economy, infrastructure, urban planning, and green development aside from the assistance during COVID-19 pandemic.

Commending the timely implementation of appropriate measures in the fight against the pandemic taken by Government of Mongolia and National Emergency Commission Agency, which made it possible to move back to normal life, recovering its economy, ADB Country Director for Mongolia Pavit Ramachandran expressed commitment to expand the cooperation with Mongolia and promote the ‘New Revival Policy’ being implemented by the Government.

ADB expressed an interest to cooperate in projects and programs including Satellite city to be established in Khushig Valley, public transport modernization, as well as ‘Green growth recovery’ and 'Urban and rural revival' to be implemented in the framework of the ‘New Revival Policy’.

“With the establishment of the Bayankhoshuu and Selbe Sub-Centers, some works reflected in the affordable housing program are planned to be realized and its construction work will be launched this spring. I am pleased to inform that Bayankhoshuu and Selbe Sub-Centers project being implemented within the framework of the ‘Ulaanbaatar Urban Services and Ger Areas Development Investment Program’ (GADIP) has become international benchmark. Further, the feasibility study for the ‘Rural development’ project to be implemented in 8-9 aimags was approved and its financing was resolved. Within the framework of the project, small and medium-sized enterprises, including processing plants, will be promoted, creating more jobs in the local areas. Therefore, it should be decided by the Government in which aimags the project will be implemented,” said ADB Senior Urban development Specialist A.Heckmann.

Deputy Prime Minister of Mongolia S.Amarsaikhan noted “We became able to move into ‘Yellow’ level thanks to the five-phase strategy measures implemented by the Government and the support of people during Covid-19 pandemic. I would like to express my appreciation to the ADB for making valuable contribution in overcoming the Covid-19. We fully agree with suggestions put forth by the ADB on the successful implementation of projects and programs of the ‘New Revival Policy’. In particular, the development of satellite cities is a priority to reduce the centralization and traffic congestion of Ulaanbaatar city. Therefore, we are willing to co-implement the projects and programs towards the establishment of infrastructure, affordable housing and free economic zone.”

In February, The Bank of Mongolia (BoM) purchased 795.3 kg, raising the BoM’s total precious metal purchase of 2022 to 2.4 tons. The figure shows an increase of 464.6 kg as compared with the same period of the previous year. The average price of BoM’s purchase of 1 gram of gold is MNT 180,905 this month.

In China, discounts widened to between $4 and $6 an ounce over global benchmark spot rates from $2 to $4 the previous week.

In Hong Kong, gold was sold at anywhere between on par with the benchmark rates to $4 discounts, versus $3 discounts last week.

Indian gold prices jumped to 55,558 rupees per 10 grams earlier this month, not far from the all-time high of 56,191 rupees hit in August 2020.

Regional physical demand is patchy, given the COVID-19 situation in China and the massive discounts in India and there is no question that the physical demand in Europe and Asia that propped the market up has weakened, said independent analyst Ross Norman.

But demand from institutional buyers continues to be robust, Norman said. Gold in Singapore, meanwhile, continued to trade at premiums of about $1-1.80 an ounce. While businesses and retail investors have started purchasing gold as prices pull back from recent highs, “we’ve seen a lot more selling” since prices are still comparatively elevated,” said Brian Lan, managing director at dealer GoldSilver Central.

With a unique value proposition to tourists, Mongolia’s tourism sector has substantial growth potential, but faces key constraints in air transport and sector coordination, according to the World Bank’s new study on Mongolia’s tourism sector. The study, entitled Fostering Inclusive Tourism Development in the Aftermath of COVID-19, analyzes the performance of the Mongolian tourism sector, its regulatory environment, and policy options based on a data-driven economic modeling approach.

“Mongolia’s tourism sector has been severely impacted by the COVID-19 pandemic and its full potential is yet to unfold. The country has an abundance of strong niche products for leisure tourism linked to its diverse nature, nomadic lifestyle, culture, and historical legacy,” – said Andrei Mikhnev, World Bank Country Manager for Mongolia. “This new study aims to help the government identify policy priorities for a more inclusive and sustainable tourism sector.”

Tourism is an important contributor to Mongolia’s economy and accounted for 7.2% of GDP, 6.8% of total exports, and 7.6% of total employment in 2019, which was the best year ever, before collapsing in 2020 due to COVID-19. Relative to comparators in Eurasia as well as to countries outside of Eurasia with similar geographic features and/or tourism offerings, Mongolia has been losing market share over the last decade. However, leisure tourism has continued to expand while business travel has declined. Leisure tourists spent less time in Mongolia comparing with similar tourist markets.

The government aims to develop sustainable and inclusive tourism and make Mongolia “the international destination for nomadic culture and tourism”. This may require prioritizing segments and markets with highest value potential before increasing the number of foreign tourist arrivals, the report points out.

The lack of resources allocated for infrastructure development and a protectionist aviation policy impede sector development, according to the enterprise survey of tourism companies conducted in the beginning of 2021. Furthermore, the tourism industry representatives acknowledged policy and sector coordination issues to be among the top issues facing the sector, including the lack of centralized marketing support, national tourism policy implementation, and coordination.

Mongolia’s tourism sector has suffered a loss of MNT 1.5 trillion due to COVID-19 with around 1,600 companies and 88,000 jobs put in risk.

March 22 (Xinhua) -- Mongolia's foreign-exchange reserves fell to 4.3 billion U.S. dollars as of Tuesday, down 2 million dollars from the beginning of this year, according to the country's central bank.

The decrease shows that imports have exceeded exports, Byadran Lkhagvasuren, governor of the Bank of Mongolia, said at a press conference.

Mongolia's imports have increased by more than 40 percent since the start of this year, Lkhagvasuren said, adding that COVID-19 restrictions have prevented the country from exporting much of its coal, its main export product, despite the high prices of raw materials in the world market.

Therefore, the balance of payments was in deficit and foreign exchange reserves declined.

According to Lkhagvasuren, the central bank could propose restricting imports of luxury goods.

Mongolia has spent 1.37 billion U.S. dollars on imports since the beginning of this year, with almost half on luxury cars, according to the bank.