Ulaanbaatar
J.Erdenebat: “We succeeded to stop sharp rise in exchange rate and protected purchasing power”
Economy
Ulaanbaatar /MONTSAME/ On June 30, Prime Minister J.Erdenebat delivered a report to the parliament regular session on measures taken and their results within the framework of Extended Fund Facility (EFF) of the International Monetary Fund in response to questions by MP O.Enkhtuvshin.
"The Government started the EFF implementation on May 24, when the IMF Executive Board approved the financial arrangement for Mongolia. The program has three-year term and IMF has provided USD 38.6 million out of total USD434.3 million for support of payment balance" PM noted.
“- We have succeeded to stop the economic fall and laid a foundation for sustainable growth. The economy started to shrink with economic growth slowdown that reached -1.6 percent in the third quarter of 2016 from the top growth of 17 percent in 2012. However, due to immediate actions to revive it, the economy has been gradually recovering, with a 1.2 percent economic growth in the end of 2016 and with 4.2 percent growth in the first quarter of 2017. We have achieved to end the economic decline and make it grow back within three quarters” underlined PM J.Erdenebat.
“- We succeeded to stabilize the exchange rate and protect the purchasing power of citizens. The market exchange rate of USD against Tugrug reached MNT 2600, intervention was no longer available, as having no currency reserve to maintain exchange rate further. The Government realized a policy to improve currency inflow, increase currency reserve, improve budgetary discipline, stabilize macro economy, reduce payment balance burden and restore investors’ confidence. As a result of the actions, exchange rate of Tugrug against USD decreased to MNT 2350, as of 29 June. The purchasing power of the national currency has been improved”, PM highlighted.
"The Government started the EFF implementation on May 24, when the IMF Executive Board approved the financial arrangement for Mongolia. The program has three-year term and IMF has provided USD 38.6 million out of total USD434.3 million for support of payment balance" PM noted.
“- We have succeeded to stop the economic fall and laid a foundation for sustainable growth. The economy started to shrink with economic growth slowdown that reached -1.6 percent in the third quarter of 2016 from the top growth of 17 percent in 2012. However, due to immediate actions to revive it, the economy has been gradually recovering, with a 1.2 percent economic growth in the end of 2016 and with 4.2 percent growth in the first quarter of 2017. We have achieved to end the economic decline and make it grow back within three quarters” underlined PM J.Erdenebat.
“- We succeeded to stabilize the exchange rate and protect the purchasing power of citizens. The market exchange rate of USD against Tugrug reached MNT 2600, intervention was no longer available, as having no currency reserve to maintain exchange rate further. The Government realized a policy to improve currency inflow, increase currency reserve, improve budgetary discipline, stabilize macro economy, reduce payment balance burden and restore investors’ confidence. As a result of the actions, exchange rate of Tugrug against USD decreased to MNT 2350, as of 29 June. The purchasing power of the national currency has been improved”, PM highlighted.
B.Ooluun
