Ulaanbaatar
BoM announces its return to normal operations
Economy
Ulaanbaatar /MONTSAME/ The Bank of Mongolia (BOM) announced that the economy has stabilized and getting back to normal, introducing the report of 2017. In 2017 Mongolia's macroeconomy stabilized and the rise was observed with inflation being kept at the central bank's target and indicators such as GDP growth, credit rating, external debt sustainability, budget and balance of payments shows restored confidence in economy and improved macro environment, the report notes.
The BOM made a profit of MNT 176.6 billion last year and its accumulated deficit lowered to MNT 2.8 trillion, according to PricewaterhouseCoopers (PwC), an independent auditor of the report. Although the main objectives of the BOM are stability of tugrug and financial stability, not profit or loss, the international experience proves that due to high accumulated deficit the central bank would be at risk of losing its independency and fulfilling its main objectives.
The stable economic environment leads to increase of private sector investment, employment, wages and salaries and creation of the basis for sustainable and inclusive growth.
The BOM made a profit of MNT 176.6 billion last year and its accumulated deficit lowered to MNT 2.8 trillion, according to PricewaterhouseCoopers (PwC), an independent auditor of the report. Although the main objectives of the BOM are stability of tugrug and financial stability, not profit or loss, the international experience proves that due to high accumulated deficit the central bank would be at risk of losing its independency and fulfilling its main objectives.
The stable economic environment leads to increase of private sector investment, employment, wages and salaries and creation of the basis for sustainable and inclusive growth.
B.Misheel
