Bank of Mongolia to keep inflation rate stable and increase foreign exchange reserves www.montsame.mn
Ulaanbaatar /MONTSAME/ Governor of the Bank of Mongolia N.Bayartsaikhan presented the parliamentary resolution draft of the Monetary Policy Guidelines for 2019 to the Speaker of the Parliament.
The monetary policy is aimed to reinforce the economic recovery. “To do this, there will be more priority placed on IT and introducing good expertise as well as boosting the development of the financial market,” said Governor of the Bank of Mongolia N.Bayartsaikhan.
“For the past two years, the foreign market has stabilized and the investment in the mining sector has increased. Furthermore, the budget and monetary policy for stabilizing the economy has been successfully implemented as well as the investors’ trust has been restored and the business environment is gradually improving. It can be seen from how the economy growth reached 6.3 percent and employment rates have increased by 3.1 percent in the first half of this year. In the future, to sustain the economic growth and its positive results, policies to stabilize inflation, to increase foreign exchange reserves and improving the risk bearing capacity of banking system must be continued. To increase foreign currency inflow, it is important to realize a comprehensive economic policy that improves the ability of domestically produced goods and products to compete in the market and create an attractive legislative environment for direct investments. For this reason, we reflected in the draft that the Mongolbank would collaborate with other governmental organizations to increase foreign exchange reserves.”
Governor N.Bayartsaikhan also talked on new laws in banking sector planned to be submitted. For instance, the bill on protection of the rights and interests of consumers of financial services has been developed. “It will be a great push in making the banking sector meet the international standards and principles as well as protecting the rights and interests of consumers of financial services. “Furthermore, a macro policy will be run to prevent the risks of losing the sustainability of the financial system. Recently, two major decisions have been made regarding this issue. The Monetary Policy Council made a decision that the time period of a consumption loan should not exceed 30 months, which will be in effect from January 1, 2019,” he said.
A.Munkhzul
Published Date:2018-09-27