The Business Council of Mongolia’s (BCM) Monthly Meeting for September 2021 was held on September 17th in collaboration with the Central Bank of Mongolia under the theme of “The Government’s Monetary Policy Guidelines for 2022.” The meeting was held in-person at the Bank of Mongolia’s G Complex Conference Hall with Vice Chairman B.Byambasaikhan hosting for a combined in-person and online audience of over 100 people.

BoM Deputy Governor G.Enkhtaivan began the meeting with a brief introduction to the BoM’s current situation, emphasizing that mitigating the economic stresses of the pandemic is the main goal. Target inflation will be 6 percent +/- 2 percent. The BoM is working to maintain stability in the banking and finance sector. Any monetary policy decisions will be made in accordance with market principles, keeping an eye on indirect effects of supply-side inflation.

The BoM is also working with the Financial Regulatory Commission for the upcoming IPOs of large banks. Recent amendments to the Banking Law require commercial banks to go public and conduct IPOs in 2022. One stakeholder cannot own more than a 20 percent stake in a bank.

Mongolia’s central bank is also going to look into whether or not to create a digital currency. However, this is in the early pre-study stage, and nothing is concrete yet.

Deputy Governor Enkhtaivan in closing expressed appreciation to the private sector, which has bared the heaviest burden in these trying times, as well as the BoM’s partners, foreign investors in Mongolia, and international organizations.

B.Bayardavaa, Director General of the BoM’s Monetary Policy Department, continued with a more in-depth presentation covering the Deputy Governor’s introduction.

The BoM’s 2022 Monetary Policy Guidelines features 7 aspects:

1. Implement policies to overcome economic difficulties arising from the pandemic, supporting the economy and promoting equitable benefits of economic growth.
2. Cooperate with international finance organizations and the private sector to promote non-mining exports, supporting financial infrastructure and sustainable finance
3. Implement the national program on combatting money laundering and terrorism financing, and prepare for the FATF evaluation coming in 2023.
4. Support the creation of a long-term, sustainable home mortgage system. Transfer the state mortgage program to be fully under the guise of the government by 2023, continuing with the current program until then.
5. Take steps to implement the “Strategy for lowering interest rates” approved by parliament in 2020 (Parliamentary Resolution No. 21).
6. Develop and implement a sustainable finance policy and strategy based on recommendations from regional and international organizations in order to address the impact of climate change on the economy and financial sector.
7. Continue with implementation and oversight of the MNT 10 trillion plan addressing the pandemic and economic recovery (Government Resolution No. 42 of 2021).

Afterwards, a panel discussion was held, with BCM Vice Chairman B. Byambasaikhan serving as the moderator.

Panelists:

• Mr. G.Enkhtaivan, Deputy Governor, Bank of Mongolia
• Mr. D.Jargalsaikhan, Founder at Young Researcher Supporting Foundation
• Mr. N.Ariunbat, Director General of Banking Restructuring and Policy Department, Bank of Mongolia
• Mr. A.Enkhjin, Director General of  Reserve Management Financial Markets Department, Bank of Mongolia
• Mr. E.Anar, Director General of Payment Systems Department, Bank of Mongolia
• Mr. Bayardavaa, Director of the Monetary Policy Department, Bank of Mongolia

Sentiments from the panel discussion and the Q&A portion can be found in the Editor’s notes from the meeting.

Links:

1. Editor's notes (English)
2. Presentation by B.Bayardavaa: Monetary Policy Guidelines (Mongolian)
3. BoM News: МБЗ-ийн гишүүдэд “Төрөөс мөнгөний бодлогын талаар 2022 онд баримтлах үндсэн чиглэл”-ийн төслийг танилцуулав