Preliminary balance of payments for 12 months of 2014

Ulaanbaatar /MONTSAME/ It was released on Tuesday by the Bank of Mongolia (BoM). Current account deficit stands at USD 985.0 million which is decrease of 69 per cent from the previous year. This is due to USD 2,322.7 million or 176 per cent decrease in deficit of trade in goods, thus showed surplus of USD 1,002.0 million. Even though capital and financial accounts showed surplus of USD 813.1 million, this is a decrease of 43 per cent or USD 625.0 million from 2013. This was caused mainly by reduction of 74 per cent of foreign direct investment to Mongolia which equals to USD 1,556.3 million. While, portfolio investment showed surplus due to Samurai bond, decline in deficit of other investment was triggered by swap agreement between BoM and People’s Bank of China, external borrowings of Development Bank of Mongolia and higher enterprises’ trade credit assets.