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Foreign exchange reserves reaches USD 3.7 billion, eight months of imports www.montsame.mn

Ulaanbaatar /MONTSAME/. On November 20, the Parliamentary Standing Committee on Economy conducted the first discussion of a draft resolution on approval of the State Policy on Monetary Policy for 2020. The state policy is aimed at strengthening economic and financial system stability and supporting financial market development. In 2020, an annual inflation rate is projected at 8 percent and mid-term targeted inflation rate is set at 6 percent.

Some measures of legislative reforms in the bank and financial sector and improvement of risk management of the banking sector were also reflected in the draft. The Bank of Mongolia’s operations will be focusing on ensuring economic stability and making its activities more accessible to the public, maintaining positive changes happening in the Mongolian economy and preventing from potential risks.

During the meeting, some statistical information was provided. As of September 2019, the total credit of Mongolia’s the banking sector increased by 10 percent compared to the same period of last year. Indicating that the economic recession period of Mongolia has ended to move forward to period of growth, the actual growth of the economy was at 7.3 percent in the first half of this year and the total foreign exchange reserves held by a central bank was USD 3.7 billion, which is enough to cover imports of 8-9 months.

After reflecting suggestions and proposals from the standing committee members, the draft resolution was forwarded for the parliamentary plenary meeting's discussion.



Published Date:2019-11-21