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ECONOMY
BANK OF MONGOLIA RAISES POLICY RATE BY 0.50 PERCENTAGE POINTS TO 6.5 PCT
The Monetary Policy Committee (MPC) of the Bank of Mongolia held an unscheduled meeting on January 28, 2022. Taking into consideration the current state of the economy and financial markets as well as outlook and risks to the domestic and foreign economic environment, the MPC decided to:
1. Increase the policy rate by 0.5 percentage point to 6.5 percent;
2. Raise the reserve requirement on liabilities in domestic currency by 2 percentage points to 8 percent;
3. Modify financing conditions of long-term repo issued to non-mining exports and manufacturing sectors.
Outlook for global economic growth has been revised downwards mainly due to the intense spread of Omicron variant of COVID-19, while cost-push inflation has been surging in many countries owing to prevailing transportation & logistical restrictions and supply chain disruptions. Prices of imported goods have also risen in our country given the continued transportation restrictions in foreign trade.
Source: Bank of Mongolia
MONGOLIA’S EXPORTS TO INCREASE WITH EXTENSION AND RENEWAL WORKS AT CHINA’S ERLIAN BORDER CHECKPOINT
On January 27, Head of ‘Ulaanbaatar Railway’ JSC Kh.Kherlen was informed by the side of China that works to extend and renew the Erlian border checkpoint and the Erlian-Jinin autoroad will be launched after the Lunar New Year.
Currently, freight transported by 14 trains are being handed over to the side of China through the border checkpoint each day due to the decision to have goods and products only be transported in containers. However, with the increased capacity of the Erlian border checkpoint, it becomes possible to increase the amount of exports from Mongolia.
The issue concerning the extension of the Erlian border checkpoint was one of the suggestions put forth during the virtual meeting that took place between the two countries’ railway authorities.
The two sides affirmed their willingness to comprehensively cooperate in order to make contributions to the development of railway transport in the two countries.
Source: Montsame
EU PROJECT ON SUPPORTING FOREIGN TRADE TO CONTINUE TO BE IMPLEMENTED
The European Union funded ‘Trade Related Assistance for Mongolia’ (EU TRAM) project will continue to be implemented, informed project leader, trade expert George Myrogiannis during a meeting held with officials of the Mongolian National Chamber of Commerce and Industry (MNCCI).
The European Union will support amendments being made to further improve Mongolia’s legal environment for trade and customs.
The project will carry out works including the following:
• provide support in drafting a bill on foreign trade, assess the bill from the viewpoint of World Trade Organization (WTO),
• provide support in fulfilling the obligations reflected in Category C of the WTO’s Trade Facilitation Agreement, and assist in making amendments to the Law on Customs,
• increase Mongolia’s export in the framework of the EU’s Generalised Scheme of Preferences Plus (GSP+),
• cooperate in the certification and registry of products to be exported to the European market.
Source: Montsame
PENSION ABOVE MNT 500 THOUSAND TO BE INCREASED BY 15 PCT
On January 27, G.Zandanshatar, the Speaker of the Parliament, issued an order to hold a non-regular meeting of the cabinet on January 28 to February 1, 2022.
L.Oyun-Erdene, the Prime Minister of Mongolia, reported:
According to the instruction of U.Khurelsukh, the President of Mongolia, the Government of Mongolia has worked promptly and submitted the budget amendment of Mongolia to the Parliament.
It was reflected to raise the minimum amount of the pension to be MNT 500 thousand and to increase the pension above MNT 500 thousand by 15% in the budget amendment.
It is a challenge for the government to raise more than MNT 637 billion to increase pensions and during the current economic period of Mongolia. I hope that citizens will respect and accept this decision, which supports their elders.
S.Byambatsogt, Member of Parliament, said:
I support the decision to increase pensions…
Source: GoGo News
See also: "Average pension increases by 29.7 percent to MNT 548.4 thousand"
CHINA COKING COAL IMPORTS DOWN 25 PER CENT DUE TO AUSTRALIA, MONGOLIA ‘GAP’ CAUSED BY UNOFFICIAL BAN, BORDER CLOSURE
China’s imports of coking coal plummeted in 2021, as the country strived to diversify its sources amid an unofficial ban on Australian coal and coronavirus pandemic-hit Mongolian imports, analysts said.
China imported 54.7 million tonnes of coking coal – an essential ingredient in the production of steel – last year, down by 24.6 per cent from 2020, according to official data.
“Even though demand for non-Australian seaborne coal imports was strong, it still could not make up for the gap left by Australian and Mongolian coal [imports],” said Jia Na, a coal analyst with the Shanxi-based Today Think Tank, on Monday.
Among the coking coal imports, 11.3 per cent or 6.17 million tonnes, was imported from Australia since October, when China started to allow Australian coal that had been stranded at its ports in the wake of Beijing’s import ban which started in October 2020.
Source: TheStar.com.my
See also:
PREPARATIONS UNDERWAY TO OPEN TAVAN TOLGOI-ZUUNBAYAN RAILROAD IN MARCH
The test ride for the 416.1 km-long railroad en route Tavantolgoi-Zuunbayan is planned to be launched on March 15 this year, informed CEO of ‘Mongolian Railway’ State-owned Joint Stock Company O.Batnasan during the working visit of Minister of Road and Transport L.Khaltar at the company.
The Minister became acquainted with the operations of ‘Mongolian Railway’ State-owned JSC, and ‘Tavantolgoi Railway’, ‘Zuunbayan Railway’ LLC as well as the current project being implemented, and tasked the companies to ensure preparations for the launch of railway transport in the route of Tavantolgoi - Zuunbayan. Noting that a technical commission of the Ministry assessed the construction of the railroad as good quality, he highlighted the importance of commissioning the railroad on schedule.
The Minister tasked the corresponding officials to open the Tavantolgoi-Zuunbayan railroad and complete the construction of the Tavantolgoi-Gashuunsukhait railroad on time.
Source: Montsame
OVERVIEW OF MONGOLIA’S SOCIAL AND ECONOMIC DEVELOPMENT FOR 1991 TO 2021 - EDITORIAL
During the 50 years between 1940 to 1990 Mongolia’s economy grew 10,4 times while for the 24 years period between 1990 to 2014 it saw the growth of 20 folds. While for the period of 1990 to 2004 the economy doubled for 2004 to 2014 it grew about 10 times.
In accordance with the prevailing contemporary definition in philosophy development is understood as forward driven progressive movement of both matter and consciousness from simple to complicated or from primitive low state to sophisticated highly organized system. Although certain schools of philosophy do not agree with this definition the concept is widely accepted.
At present researchers and scholars define three following categories of human development:
1. Material development
Body development (strength, endurance, growth and etc.,)
Technical development (agriculture, industry, information and etc.,)
Financial development (personal, household, cooperative, state, public and etc.,)
2. Spiritual development (spiritual thinking, spiritiual satisfaction, self expression and etc.,)
3.Moral development (Morality and etc.,)
4.Societal development (social status, hierarchy)
Source: Baabar.mn
DIGITAL CONNECTION IN MONGOLIA: EXPLORING OPPORTUNITIES AND ALUMNI HIGHLIGHTS - INTERVIEW
As technology advancements and virtual project options continue to grow around the world, we want to highlight three different virtual projects in Mongolia that have enabled us to reach a broader group of people. We’ll also explore tips and tricks for engaging participants with virtual games, including an interview with Bud Bayndalai ’20 (Erdenet, Mongolia / Otsego, MI).
Each alumnus led a session related to a course from their university or to their area of study. Participants learned the basics of economics, such as international trade and inflation; delved into science and technology; and learned the basics of coding and innovation. The workshop wrapped up with the participants studying international relations and politics.
Each session focus had several interesting tasks and prompts to solve. For example, after the coding lesson, each participant created a small three-minute animation coded video. Participants gained knowledge and skills to become successful technology users in the 21st century, such as critical thinking, logic, and leadership.
Source: BradleyHerald.org
DO FAMILIES WITH MORE CHILDREN MAKE LESS MONEY? - EDITORIAL
Any parent will tell you that having children is expensive. Raising children takes large quantities of clothes, food, education, toys, and the most costly thing of all, time.
Those same parents will also probably tell you their children are the best things they have made in their lives. As my wife has started saying, once you have children, you make every decision in your life with them in mind.
Women in Mongolia tend to have more children than in Western countries. In 2019 there were 2.8 children born per woman in Mongolia, significantly lower than the peak in 1965 of 7.5 children born per woman.
Let’s put this trend in perspective and compare Mongolia’s fertility rate with other countries.
We can see that it is a widespread trend for birth rates to have gone down over time since 1960. Yet around 2005, the trend in Mongolia started going up again. Mongolia today has a similar birth rate to China’s in 1979.
Source: Mongolian Data Stories
POLITICS
IRREGULAR SESSION OF THE PARLIAMENT OPENS TO DISCUSS AMENDMENT TO STATE BUDGET 2022
State Great Khural (Parliament of Mongolia) opened its irregular session today on January 28 to discuss amendments to State Budget 2022.
"Mongolia's economy revived in 2021, with the export reached USD 9.2 billion and the foreign trade balance was in surplus of USD 2.4 billion. Despite these positive indicators, one of the problems facing the world is the increase in commodity price. Retired citizens who make a living from their pension and citizens who are in need of welfare are suffering the most due the increase in commodity prices. Therefore, in accordance with the President's directions, the Cabinet made a decision to amend the law on State Budget for 2022 to increase the amount of pensions and submitted the bill today," the Speaker said.
Following the directions given by President U.Khurelsukh, the Government reflected on the amendment bill the minimum pension to be MNT 500 thousand.
Source: Montsame
SEC URGES PEOPLE TO CELEBRATE TSAGAAN SAR AT THEIR HOMES
Deputy Prime Minister of Mongolia S.Amarsaikhan presented current situation of the pandemic and responsive measures being taken during today’s cabinet meeting.
According to the latest data, the positive percent in coronavirus tests reached 29.5 percent nationwide. Furthermore, the infection rate of children in positive test results increased to 22 percent. As of January 30, 2,153 children who are diagnosed with COVID-19 are undergoing hospital treatments.
Considering the current COVID-19 situation in the country, the Government and the State Emergency Commission urged people to continue to adhere to infection control regimes and celebrate Tsagaan Sar at their homes.
Since COVID-19 vaccination rollout launched, 75.1 percent of the citizens in the capital city have received the first dose of the vaccine, while 72 percent have been fully vaccinated and 52.4 percent have received their third jabs. In addition, 5.1 percent were vaccinated with the fourth dose.
Source: Montsame
See also: President extends Lunar New Year greeting
LAW ON RAISING PENSIONS OF ELDERLY APPROVED
During today’s session of the State Great Khural, the amendments to 2022 state budget was approved.
In particular, the Government submitted the relevant draft laws to raise pensions of the elderly in the budget to the State Great Khural on January 28. With the approval of the laws, MNT 637 billion will be spent for the following activities:
- Social welfare pension will be increased to MNT 288 thousand from MNT 188 thousand until the end of this year;
- Minimum reduced pension in proportion will be raised from MNT 300 thousand to MNT 400 thousand;
- Minimum full pension will be increased from MNT 350 thousand to 500 thousand;
Moreover, the pension will be raised by 15 percent for those who receive more than MNT 500 thousand.
Source: Montsame
LATEST ON COVID-19 IN MONGOLIA
Below are headlines from the past week concerning Covid-19 in Mongolia:
Source: Various
MONGOLIA READY TO COOPERATE WITH RUSSIA ON RARE-EARTH METAL DEPOSITS — PRESIDENT
Mongolia is ready to cooperate with Russia in the exploration of rare-earth metal deposits, President of Mongolia Ukhnaagiin Khurelsukh said on Monday in an interview with the Rossiya-24 TV Channel.
"I would like to express our readiness to cooperate with different countries of the globe, including the Russian Federation, for geologic prospecting of rare-earth metal deposits and for their further use," their head of state said. Russia and Mongolia "have the good tradition of cooperating in the mining sphere exactly" and hundreds of Mongolian mining specialists were educated in Russia and are successfully working in this segment, the Mongolian leader said.
Mongolia is among the top twelve countries of the world in terms of natural riches, Khurelsukh said. "The mining industry is very well developed in our country. We are exporting our products to Russia and to China. We have very good gold, coal, iron ore, and rare-earth metal deposits. Our geologists discovered four deposits of rare-earth metals.”
Source: TASS
MONGOLIA NOW HAS A RECORD NUMBER OF WOMEN AMBASSADORS
Last year, Mongolia celebrated its 110th anniversary as an independent country. Along with that, modern Mongolia has notched 110 years of national diplomacy. Amid the task of foreign policymaking, the foreign ministry has also made developments in diversifying its workforce. The current office of the foreign ministry appointed the highest number of female ambassadors in the history of modern Mongolia.
Male figures have often carried out state and foreign affairs throughout Mongolia’s history. Historians and international relations scholars enjoy an abundance of literature on male Mongol leaders, dating back to the 13th century and Chinggis Khan. “The Secret History of the Mongols” illustrates the political and personal cult of male leaders, one generation after another. In modern Mongolia (starting from the Mongolian Revolution in 1911) literature on past rulers Bogd Khan, Choibalsan Khorloo, and Tsedenbal Yumjaa, followed by the six democratically elected presidents, is also abundant.
Source: The Diplomat
See also: Mongolia: Women increasingly at the center of foreign diplomacy
MONGOLIAN GOV'T TO PROMOTE WINTER SPORTS, PM
The Mongolian government will promote the development of winter sports through its policies, the country's Prime Minister Luvsannamsrai Oyun-Erdene has said.
Oyun-Erdene made the remarks during a virtual meeting with athletes and coaches who will participate in the upcoming Beijing 2022 Winter Olympics and Paralympics on Friday, the government's press office said in a statement.
Mongolia has every chance to succeed in the Winter Olympics, he said, noting that the government plans to support the development of winter sports through policy and do a lot to improve the material base and environment.
Three skiers of Mongolia have qualified for the 2022 Olympic Winter and Paralympic Games, according to the Mongolian National Olympic Committee.
The Mongolian government has decided to award 10 million Mongolian Tugriks (3,500 U.S. dollars) to each of these athletes.
Source: China.org.cn
MONGOLIA, CHINA SHARE BROAD POTENTIAL TO DEVELOP COOPERATION, CONDUCT JOINT TRAINING IN WINTER SPORTS: MONGOLIAN ENVOY TO CHINA - INTERVIEW
The Beijing 2022 Winter Olympics will kick off on Friday, with the world awaiting this grand sports event to unleash potential for countries to foster cooperation and connectivity under the Olympic spirit. In an exclusive interview with the Global Times, Mongolian Ambassador to China Tuvshin Badral shared his views on the upcoming Winter Olympics and how the winter sports may find its roots in boosting bilateral ties.
GT: What is your current plan on participating in the Beijing 2022 Winter Olympic Games?
Badral: Prime Minister of Mongolia Luvsannamsrai Oyun-Erdene has expressed Mongolia's solidarity and confirmed his participation in relevant activities of the Beijing 2022 Winter Olympic, as Olympic Games are an event that symbolizes unity and friendship among mankind. I will take part in the Prime Minister's visit and will attend the opening ceremony of the Beijing Winter Olympics. I also hope that we will have the opportunity to enjoy some of the games.
Source: GlobalTimes.cn
See also: Chinese, Mongolian FMs hold phone call on bilateral ties
BETWEEN THE BEAR AND THE DRAGON: MONGOLIA NEEDS US HELP – OPED
Presidents Xi Jinping and Vladimir Putin are autocrats on a roll. Russia is threatening to invade and dismember Ukraine for a second time and its “peacekeeping” troops have returned from Kazakhstan after propping up a corrupt government dedicated to one-party rule. China is accelerating its military buildup at an alarming rate posing a direct threat to Taiwan and using its advanced weaponry, economic weight, and diplomatic bullying to become the hegemon of the Asia-Pacific region—over 20% of the global land area. As NATO countries scramble to implement a plan for pushing back on Putin and the U.S. works with allies to counter Chinese aggression, it’s time for the U.S. to double down—supporting democracy in Mongolia.
Despite sitting between two giant, aggressive neighbors, Mongolia has emerged with a political independent streak and serves as a regional conveyor belt for democratic ideals. The country has good relations with North Korea and remains an open window on an alternative political and economic process for visiting North Koreans.
Source: Eurasia Review
BUSINESS
MNT 100 BILLION SOFT LOAN PROGRAM GEARED TOWARDS SMES ANNOUNCED
Within the framework of public-private partnership, Ulaanbaatar City’s SMEs Support Center and Bogd Bank have announced that a MNT 100 billion soft loan with be granted to the SMEs operating in Ulaanbaatar city. Specifically, soft loans with a monthly interest rate of 1.3-1.5 will be provided to SMEs. SMEs will be offered flexible and favorable conditions, and the partner companies will focus on further improving loan and deposit conditions.
D.Sumiyabazar, Governor of the Capital City and Mayor of Ulaanbaatar, G.Gangamurun, Director of Ulaanbaatar City’s SMEs Support Center, and G.Saruul, Executive Director of Bogd Bank made statements regarding this on January 20.
During the press conference, D.Sumiyabazar, Governor of the Capital City and Mayor of Ulaanbaatar said “Within the framework of the Capital City’s new legal environment, city authorities are working to provide support to our SMEs. We are working to expand the public-private partnerships to improve the economy, create more job opportunities in all sectors to make Ulaanbaatar a more employment-friendly city.”
Source: Montsame
JADE GAS SPUDS TWO CBM WELLS IN MONGOLIA
Sydney-listed coalbed methane (CBM) producer Jade Gas on February 1 announced that the second and third wells in its six well drilling programme in Mongolia have spudded.
Red Lake-3 and Red Lake-4 are part of the company’s flagship TT CBM project in the Tavantolgoi basin in Mongolia. The first of the six wells, Red Lake 1, was spudded in November.
Jade is targeting CBM across the central core area of the permit, which has an independently assessed prospective resource of 1 trillion ft3.
Red Lake-3 is currently drilling ahead at a depth of 457 m. It is anticipated that it will take four weeks to drill. Red Lake-4 will be cored to a depth of around 1,000 m, Jade said.
Source: NaturalGasWorld.com, Stockhead.com.au
MONGOLIA PLANS DIRECT FLIGHT TO THE US IN 2023
The Civil Aviation Authority of Mongolia held the second meeting with the relevant officials to discuss a launch of direct flight between Mongolia and the US.
The online meeting was attended by S.Munkhnasan, Director General of the Civil Aviation Authority, B.Munkhtamir, Executive Director of MIAT Mongolian Airlines and other experts, as well as U.Batbayar, Ambassador of Mongolia to the United States of America, and S.Sukhbold, Director of the International Treaty and Law Department.
The meeting discussed the process of establishing air services between the two countries, concluding air transport agreements, and the requirements and preparations of other countries for direct flights from the US Federal Aviation Administration. MIAT JSC also introduced the options of direct flights between Mongolia and the US.
Source: GoGo News, Montsame
See also: Minister of Environment and Tourism holds meeting with airline representatives
AUSTRALIAN FIRM TARGETS MONGOLIA FOR GREEN HYDROGEN PROJECT
Adelaide-headquartered Elixir Energy has announced it has achieved progress on multiple fronts for its proposed Gobi H2 green hydrogen project in Mongolia, including the signing of a memorandum of understanding (MoU) to support project finance.
ASX-listed Elixir, whose strategy rests on the view that the Gobi region is one the of best locations in the world for producing and exporting green hydrogen, given its renewable resources and immediate proximity to likely hydrogen markets, said it had executed a memorandum of understanding (MoU) with the Mongolia Green Finance Corporate (MGFC) as it seeks to progress its renewable energy ambitions.
Under the MoU, the two entities will work together to identify carbon offset opportunities to reduce exploration and appraisal stage scope 1 and 2 carbon emissions, develop larger scale forestry and nature related offsets, and work with international financial institutions over the project financing of Gobi H2.
Source: PV Magazine Australia
See also: Elixir Energy : Quarterly Activities Report and Appendix 5B Dec 2021
MONGOLIA APPROVES GURVANTES CBM PROJECT EIA
Australia’s Talon Energy and Telmen Resource, its partner in the Gurvantes XXXV coalbed methane (CBM) project in Mongolia, have received government approval for the project’s environmental impact assessment (EIA), Talon said on February 3.
As a result of the EIA approval, Telmen will mobilise to site within the coming weeks to complete final site preparations, with the maiden Gurvantes XXXV drilling programme is expected to start in late February - early March.
The drilling programme will include the completion of four fully tested cored holes within the western por |
