Guidance from the financial stability board

GUIDANCE FROM THE FINANCIAL STABILITY BOARD

2022.02.28                No. 6              Ulaanbaatar

         The Financial Stability Board of Mongolia held a special session on February 28th, 2022 and discussed Mongolia’s economic outlook, risks in foreign environments, and uncertainty, and issued a guidance statement in accordance with the following objectives with the intent to contribute to macroeconomic stability and to continue economic intermediation:

1. In light of the economic circumstances that have arisen as of recently in foreign environments, to continue the international payment processes without pause.
2. Urgently finish the fortification of the border controls and the expansion of borders cited in the “New Revival Policy”, which will increase business volume. Additionally, come to agreements with the PRC in order to coordinate border planning and organization and revert back to standard processes.
3. Strengthen antiviral protection practices around the border, improve border entry arrangements, and increase exportation through the introduction of transportation terminals and technologies (eg. AGV) that eliminate the need for direct human involvement.
4. Increase the supply of imported goods and decrease transportation costs through the study and usage of the Zamiin-uud, Bulgan, Bichigt, Gashuunsuhait, and Shiveehuren borders, as well as other new transportation routes for imported goods.
5. Implement policies and processes related to the stabilization of the inflation rate at the State Bank’s medium-term target fund ratio, as outlined in the objectives of the monetary policy that was newly ratified by the Mongolian National Parliament, in order to decrease the inflation rate that has increased due to various external and internal factors.
6. Support foreign payment capabilities in order to promote macroeconomic stability and coordinate with the implementation of policies and projects dedicated to the increase of the currency fund.
7. Support international payment capabilities and implement projects, monetary policy, processes and financial arrangements to increase the currency fund in order to contribute to macroeconomic stability.