Ulaanbaatar
Foreign Currency Reserves of Mongolia Reach USD 4.9 Billion
Economy
Ulaanbaatar, January 2, 2025 /MONTSAME/. At its December 2024 meeting, the Monetary Policy Committee of the Central Bank of Mongolia presented a report on the implementation of monetary policy, the current state of the economy, the banking sector, economic prospects, and recent market changes.
The report highlighted that the coal export revenue of Mongolia reached USD 8.1 billion as of November 2024, an increase of approximately USD 200 million compared to the same period the previous year.
The bonds issued by Ulaanbaatar City and Golomt Bank in the capital market supported the inflow of foreign currency. On the other hand, increased imports of machinery, equipment, passenger vehicles, and services have led to a rise in outflows, resulting in a net foreign currency outflow decrease of approximately USD 570 million compared to the same period last year.
As of November 2024, Mongolia's foreign currency reserves reached USD 4.9 billion, sufficient to cover 4.9 months of imports.
Regarding monetary market operations and interbank market transactions, the report indicated that the total assets of the banking system increased by 26.7 percent in the third quarter of 2024, reaching MNT 62.4 trillion. The total liabilities of the banking system reached MNT 55.7 trillion, a 27.4 percent increase compared to the same period last year, primarily driven by growth in demand and savings deposits. As of the third quarter of 2024, non-performing loans accounted for 5.1 percent of total loans, and watch-list loans were at 3.6 percent, marking the lowest levels since 2015.
Inflation reached 8.1 percent in November 2024, an increase of 1.1 percentage points from the previous month. The report emphasized that a 1.3 percentage point increase in inflation could be attributed solely to the rise in household electricity prices. Regarding future inflation prospects, the report showed that inflation is expected to intensify due to the direct and indirect impacts of price increases in government-regulated services, such as electricity, water, and heat, as well as increased demand associated with government spending and economic activity. Consequently, inflation is projected to exceed the target upper limit next year.
