FOREIGN EXCHANGE RESERVES REACH USD2.9 BILLION

Ulaanbaatar /MONTSAME/ This year, the Central Bank’s foreign exchange reserves have surged to USD 2.9 billion. The reserves are cruicial factor to sustain value of domestic currency and stability of financial and macro economic sector. It is also significant to improve asset liquidity in a time of economic crisis, reassure and provide confidence to foreign investors, ensure that the country meets its external obligations and most importantly, guarantees national security. “In the beginning of this year, foreign reserves barely passed minimum level – the amount was enough to cover only 3.1 months’ import of products and services. Now, in December, it has risen to 6.1 months. While the reserves had deficit of USD 400 million last year, it has a surplus of USD 520 million as of the begginning of December. The future looks promising as well”, said Director of Finance Department of the Bank of Mongolia D.Bayanzul. The official foreign currency reserves have grown by USD 1 billion compared to the beginning of 2018. Economists emphasize that Mongolian Gold project, “Khuraldai” and “Gerege” bonds played a major role in the hike. The rise was additionally leveraged by 8.2 percent increase in gold purchase this year. O.Onon