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BCM HIGHLIGHT
2022 MONGOLIA ECONOMIC FORUM TO BE HELD APRIL 7-8
The Mongolia Economic Forum is back after not being held during the Covid-19 pandemic. The 2022 conference will highlight the “New Recovery Policy” of the government.
The New Recovery Policy aims to strengthen Mongolia’s economic independence, reduce the negative impact of COVID-19 pandemic and geopolitical instability on the economy, and promptly address development barriers. This policy is a medium-term target program for up to 10 years intended for creating the basic conditions for effective realization of Mongolia’s long-term development policy and improving the economy, infrastructure and public productivity.
To view the agenda and to register, please visit the official website meforum2022.mn.
See also:
ECONOMY
CENTRAL BANK RAISES POLICY RATE TO 9 PERCENT TO FIGHT CURRENCY SLIDE
Today (24 March), Mongolia’s central bank has lifted the country’s key interest rate by 2.5 percentage points to 9 % in a desperate move to halt the home currency’s decline amid Russia-Ukraine crisis.
Four days after Russia invaded Ukraine on February 24, the governor of the Bank of Mongolia (BoM), B.Lhagvasuren, told reporters that the national lender boasted USD 4.3 billion in reserves as of the start of 2022, and that the reserves were more than enough to cover seven to eight months. Yet there have been instances of bank customers blocked from making foreign payments of more than MNT 4 million (less than USD 1,700) and prevented from obtaining more than USD 1,000 per day.
Customers were informed by their banks that the central bank had set limits on foreign exchange transactions. However, the BoM suggested that individual banks may have set their own limits on the amount of dollars that can be withdrawn, taking account of their internal reserves.
Source: News.mn
See also: Government to support central bank’s policy on maintaining foreign exchange reserves
INFLATION REACHES 14.2 PERCENT IN FEBRUARY 2022
In February 2022, consumer price index at the national level increased by 1.1 percent from the previous month, by 3.1 percent from the end of the previous year and by 14.2 percent from the same period of the previous year.
The inflation rate was 6.9 percent in February 2019, 6.4 percent in February 2020, 2.6 percent in February 2021 and reached 14.2 percent in February 2022, increased by 11.6 percentage points from the same period of previous year.
The price of 373 items was collected for the consumer goods and services basket at the national level and prices of 344 items collected for goods and services basket in Ulaanbaatar. Out of 373 selected items of goods and services, 200 items were imported goods and services, which accounts for 45.5 percent of the total weight.
In February 2022, 50.7 percent of 14.2 percent inflation rate was mainly contributed by an increase in prices of imported goods and services.
Source: Montsame
See also: National currency in circulation reaches MNT 1.0 trillion
Deposits in foreign currency decreased by 6.2 percent
MONGOLIA'S FOREX RESERVES DROP TO 4.3 BLN USD
Mongolia's foreign-exchange reserves fell to 4.3 billion U.S. dollars as of Tuesday, down 2 million dollars from the beginning of this year, according to the country's central bank.
The decrease shows that imports have exceeded exports, Byadran Lkhagvasuren, governor of the Bank of Mongolia, said at a press conference.
Mongolia's imports have increased by more than 40 percent since the start of this year, Lkhagvasuren said, adding that COVID-19 restrictions have prevented the country from exporting much of its coal, its main export product, despite the high prices of raw materials in the world market.
Therefore, the balance of payments was in deficit and foreign exchange reserves declined.
According to Lkhagvasuren, the central bank could propose restricting imports of luxury goods.
Mongolia has spent 1.37 billion U.S. dollars on imports since the beginning of this year, with almost half on luxury cars, according to the bank.
Source: Xinhua
MINING AND QUARRYING GROSS OUTPUT DROPS BY 36 PERCENT
According to the National Statistics Office of Mongolia, in the first 2 months of 2022, the gross industry al output reached MNT 2.3 trillion, decreased by MNT 729.2 billion (24.2 percent) from the previous year. This decrease was mainly due to MNT 784.3 billion (36.1 percent) decrease in mining and quarrying gross output.
In addition, the manufacturing production output increased by MNT 31.2 (5.8 percent), electricity, thermal energy and water supply production output increased by MNT 19.7 billion (7.1 percent) and the water supply, and sewerage, waste management, and remediation activities production output rose by MNT 4.3 billion (18.1 percent) from the previous year.
By preliminary results, in the first 2 months of 2022, the mining and quarrying gross output reached MNT 1.4 trillion, dropped by MNT 784.3 billion (36.1 percent) from the same period of previous year. This decrease was mainly due to declines in mining of coal and lignite by 752.2 billion (75.5 percent)…
Source: Montsame
MONGOLIA PLANS TO RESTART TAVAN TOLGOI-TSAGAAN KHAD COAL DELIVERY ON APR 1
Mongolia plans to restart the transportation on Apr 1 from its largest coal deposit Tavan Tolgoi to the customs stockyard Tsagaan Khad, which is 23 km away from the largest Mongolia-China coal artery Gashuunsukhait/Ganqimaodu border crossing, according to B.Javkhlan, the Minister of Finance.
The medium-haul transportation had been stopped since May last year due to the outbreak of pandemic.
Mongolia added 85 new local COVID-19 cases over the past 24 hours, according to data released by the country's health ministry on March 23, far lower than over 2,000 daily increment in early February.
Erdenes Tavan Tolgoi, a subsidiary of the state-run Erdenes MGL, which is the owner of the deposit, will further increase production from April 1, according to B.Javkhlan.
There were about 5.4 million tonnes of coal stocked at Tsagaan Khad, halving the volume of 12 million tonnes when the pandemic hit the border last year.
Source: SXCoal.com
MONGOLIA COAL RAILINGS UP 3.56 PCT YOY IN FEB; IRON ORE SHIPMENT SLUMPS 52.7 PCT
Mongolia's coal railings came in at 942,800 tonnes in February, up 3.56% year on year but down 19.11% month on month, showed data from the National Statistical Office of Mongolia.
In the month, railway shipment of iron ore was 275,400 tonnes, slumping 52.71% from a year ago, but soaring 601.2% from January.
Coal railings totaled 2.11 million tonnes during the first two months of 2021, up 10.84% year on year, and iron ore shipment was 314,600 tonnes, down 74.55%.
Source: SXCoal.com
MONGOLIA EASES ENTRY REQUIREMENTS – WHAT TRAVELERS SHOULD KNOW
One more country has joined the worldwide clamor to remove entry requirements in the past few days, with Mongolia now completely removing its entry rules for travelers.
In doing so, Mongolia – located in Asia – has become the 17th country around the world to remove Covid-19 related restrictions, and return to ‘normal’.
Compared to last year, 2022 has been a much brighter one for travelers, with a growing number of worldwide destinations taking steps to make it much easier for travelers to visit once again.
Located between Russia and China, Mongolia is a melting pot of culture and history that travelers heading to the country can experience at every corner of its vast expanse – and it’s suddenly become extremely easy for travelers to be able to enter.
Mongolia has now joined the ever-growing list of countries to completely remove their Covid-19 related entry requirements, making visiting the country a much more affordable and attractive proposition.
Source: News.mn
MORTGAGE REPAYMENT DEFERRAL SUPPORT EXTENDED
At its plenary session, the State Great Khural has extended the effective period of the Law on Prevention, Combat, and Reduction of Social and Economic Impacts of the COVID-19 until the end of December 31, 2022.
In order to ensure effective implementation of the law and provide support to households amid the pandemic, the Bank of Mongolia in cooperation with corresponding organizations and banks decided to make deferrals on the subsidized mortgage loans’ principal and interest repayment again until the end of December 31, 2022.
With a view to alleviate the financial hardship posed by COVID-19 pandemic on businesses and individuals, who have been falling behind their loan dues, the government of Mongolia together with the Bank of Mongolia and commercial banks started fulfilling mortgage payment deferral requests in April 2020, regarding the borrower's request, and to extend the loan agreement term without increasing the amount of the remaining payment.
Source: Montsame
ADULTS TO BE INVOLVED IN 19 TYPES OF MEDICAL CHECKUPS, WITH CHILDREN INVOLVED IN SIX
At a regular meeting of the Cabinet on March 23, Minister of Health S.Enkhbold did a presentation on the preparations underway for the works to be carried out to involve citizens in early-detection checkups from May 1.
Adults will be involved in 19 types of medical checkups.
The medical checkups that are being planned include the diagnosis of cardiovascular disease, diabetes, and tuberculosis, assessment of mental and general physical health, blood and urine tests, glucose, pap smear, hepatitis B and C, rapid tests for syphilis and HIV, electrocardiogram, endoscopy, gastroscopy, and ultrasound tests for the chest and abdominal areas as well as thyroid.
As for children up to the age of 18, they will be involved in six types of medical checkups. This will include diagnosis of non-infectious diseases, mental health assessment, dental checkup, eye exam, and tuberculosis test.
Source: Montsame
See also: Minister of Health worked in Bulgan province
ADB EXPRESSES INTEREST TO COOPERATE IN REALIZING ‘NEW REVIVAL POLICY’
Deputy Prime Minister of Mongolia S.Amarsaikhan received ADB Country Director for Mongolia Pavit Ramachandran, ADB Senior Urban Development Specialist A.Heckmann and Ger areas development project coordinator D.Avirmed.
Over the past 28 years, the Asian Development Bank has issued a total of USD 3.9 billion in funding to Mongolia by providing substantial support in wide range of areas including education, health, society, economy, infrastructure, urban planning, and green development aside from the assistance during COVID-19 pandemic.
Commending the timely implementation of appropriate measures in the fight against the pandemic taken by Government of Mongolia and National Emergency Commission Agency, which made it possible to move back to normal life, recovering its economy, ADB Country Director for Mongolia Pavit Ramachandran expressed commitment to expand the cooperation with Mongolia and promote the ‘New Revival Policy’ being implemented by the Government.
Source: Montsame
THE EU-FUNDED ‘SUSTAINABLE PLASTIC RECYCLING IN MONGOLIA’ PROJECT IS HELPING TO IMPROVE WASTE MANAGEMENT IN MONGOLIA
Waste is not only harmful for the environment and human health but it also creates an economic loss. In Mongolia, we do not have a recycling system in place, therefore, almost all waste is collected and dumped at unofficial and uncontrolled landfills, after which it is burned.
“Аbout 300 million tonnes of plastic waste is produced every year. That’s nearly equivalent to the weight of the entire human population. This is why the EU-funded project is helping to reduce the harmful effects of plastics and focusing on establishing an effective waste management system in Mongolia" says H.E. Ms. Axelle Nicaise, the Ambassador of the European Union to Mongolia during the high-level mission meeting in Bulgan province.
A mission team consisting of EU Ambassador Ms. Axelle Nicaise, Czech Ambassador Mr. Jan Vytopil and Polish Ambassador Mr. Krzysztof Bojko is traveling to Bulgan province. The purpose of the mission is to visit the sites of the project “Sustainable Plastic Recycling in Mongolia” (SPRIM)…
Source: The UB Post
CHINA-MONGOLIA BORDER PORT SEES ROBUST FRUIT, VEGETABLE EXPORTS
From 2018 to the end of February 2022, a total of 364,000 tonnes of fruits and vegetables were exported from China to Mongolia via the border port of Erenhot in north China's Inner Mongolia Autonomous Region, according to the Erenhot Customs.
The total trade value of fruit and vegetable exports to Mongolia through the port reached 423 million yuan (about 66.4 million U.S. dollars).
In 2018, a green channel for agricultural products was launched, which has since been putting more than 30 kinds of fruit and vegetables, including apples, oranges, lemons, onions, peppers and cucumbers, on the tables of Mongolian people.
Thanks to this green channel, the average customs clearance time for fruit and vegetable exports has been reduced to 30 minutes.
Erenhot, the largest land port on the China-Mongolia border, supplies about 80 percent of Mongolia's fruit and vegetables.
Source: News.cn
RENOVATION OF NATIONAL AMUSEMENT PARK TO BE INTRODUCED TO PUBLIC
A regular meeting of the capital city authorities was held on March 21.
- Land acquisition is 36-77 percent complete
- 32.1 percent of children at Family Health Centers were diagnosed with influenza
- Public transport upgrade planned
- Buildings no taller than six-story to be built in the city center
- Specialized Inspection Department of capital city B.Batshagai
- The partial general plan of Sonsgolon and Yarmag to be introduced
Source: Montsame
MONGOLIA RANKS 68TH IN WORLD HAPPINESS REPORT
The World Happiness Report 2022 has been released by the United Nations Sustainable Development Solutions Network. In the report, Mongolia has been ranked 68th out of 146 countries.
In particular, Mongolia was listed at 82nd by GDP, 22nd by access to community services, 104th by healthy lifestyle, at 118th by freedom to make life choices, 27th by generosity and 29th by corruption.
The World Happiness Report looks at the state of global happiness in 156 countries, ranking countries using the Gallup World Poll and factors such as levels of GDP, life expectancy, generosity, social support, freedom and corruption income. The World Happiness Report was originally launched in 2012.
Finland was once again crowned as the world’s happiest country, extending its lead over Denmark and Iceland.
World's happiest 10 countries of 2022:
Source: Montsame
MONGOLIA'S CENTRAL BANK CIRCLES WAGONS AROUND RESERVES AS UKRAINE CRISIS PUTS ECONOMY TO THE TEST - EDITORIAL
The economic ramifications of Russia's invasion of Ukraine and the West's imposition of heavy sanctions on Moscow in response to it are starting to unsettle Mongolia.
Four days after Russia invaded Ukraine on February 24, the governor of the Bank of Mongolia (BoM), Lhagvasuren Byadran, told reporters that the national lender boasted $4.3bn in reserves as of the start of 2022, and that the reserves were more than enough to cover seven to eight months. Yet there have been instances of bank customers blocked from making foreign payments of more than Mongolian tughrik (MNT) 4mn (less than $1,700) and prevented from obtaining more than $1,000 per day.
Customers were informed by their banks that the central bank had set limits on foreign exchange transactions. However, on March 21, BoM provided a statement to Ikon, a local news agency, in which it said that there was no limit placed on FX.
Source: Xinhua
POLITICS
MULTI-STAKEHOLDER COUNCIL FOR SUSTAINABLE DEVELOPMENT OF MONGOLIA LAUNCHED
The Sub-Committee on the SDGs of the Parliament of Mongolia officially launched and convened the first meeting of the Multi-stakeholder Council for Sustainable Development (MCSD) in Mongolia.
The main objective of MCSD is to support the country in fulfilling its commitments to realize the 2030 Agenda for Sustainable Development.
The MCSD will support the SDG sub-committee of the State Great Khural in its role to:
- monitor and analyse the implementation of SDGs
- promote decision-making that supports sustainable development
- ensure effective coordination between the government, development partners, private sector and other key stakeholders in their efforts to implement and achieve the SDGs
- provide the Government with recommendations on the planning, financing, implementation and monitoring of SDGs
- increase awareness of SDGs issues
Source: UN Mongolia
See also: Opening Remarks by Tapan Mishra, UN Resident Coordinator in Mongolia at the Launch of the Multi-stakeholder Council for Sustainable Development
VICE MAYOR: MNT 2.7 TRILLION IN ECONOMIC DAMAGE DUE TO TRAFFIC CONGESTION IN 2020, 8 PCT OF GDP
“Solution of Traffic Jam” forum was held on March 17.
B.Odsuren, Deputy Governor of Ulaanbaatar, said, “Most of the migrants to Ulaanbaatar come from Tuv, Uvurkhangai, Arkhangai, Uvs and Selenge provinces.
The number of cars in Mongolia increases by 80,000. The term full-day traffic jam or chronic traffic jam will happen in the future.
Ulaanbaatar has 3 million daily traffic movements, 50 percent go to work and 25 percent to schools and kindergartens.
In 2020, Mongolian citizens lost time equal to MNT 2.7 trillion in traffic jams. This is eight percent of GDP. If no action is taken, it is likely to reach MNT 6.8 trillion by 2025. One person spends 35 days a year in his car. USD 100 million a year in fuel is wasted on traffic jams.
Nationwide, USD 1.5 billion worth of equipment is purchased annually. Of that, USD 460 million is spent on cars”.
Source: GoGo News
See also: Discussion takes place on ‘Solution to the traffic congestion’
THE REVISED LABOR LAW (PART 2)
Changed key provisions
- REGULATION ON COLLECTIVE DISMISSAL
The Revised Labor Law regulates the issue of collective dismissals in detail and specifies the conditions to be considered as a collective dismissal.
If an employer: …within 90 days shall be considered as a collective dismissal.
- with 10-50 employees terminating the employment with 5 or more employees,
- with 51-499 employees terminating employment with 10 percent or more of the total number of employees,
- with 51-499 employees terminating the employment with 50 or more employees.
In the event of collective dismissal, the employer must:
1. negotiate with employee representatives to reduce the number of employees to be laid off,
2. to transfer an employee to vacant positions,
3. to create new jobs,
4. to hire in the first place when the number of employee increases, and
5. termination benefits.
Source: Mongol Advocates
ENERGY MINISTRY TO CARRY OUT 22 PROJECTS
Mongolia aims to transform from an energy importer to an exporter and become energetically self-sufficient. Unfortunately, the country remains unable to meet even its domestic needs and still buys electricity from its two neighbors due to its lack of infrastructure. In connection with this, within the framework of the New Revival Policy, a Pre-Forum on Energy Revival was held on Monday ahead of the 2022 Mongolian Economic Forum. Starting this week, a series of meetings are being organized in preparation for the Mongolian Economic Forum, which is set to take place on April 7 and 8.
During the event, economists, energy sector specialists, researchers and experts discussed financing and investment for development projects, public-private partnerships, the current tariff system being implemented in the sector, and the sector’s contribution to Mongolia’s green development.
Minister of Energy N.Tavinbekh highlighted that it is impossible to revive the country’s economy while ensuring the stability of the energy sector.
Source: The UB Post
LATEST ON COVID-19 IN MONGOLIA
Below are headlines from the past week concerning Covid-19 in Mongolia:
Source: Various
EUROPEAN DIPLOMATS URGE MONGOLIA TO CONDEMN RUSSIAN AGGRESSION AGAINST UKRAINE
Op-Ed by the Ambassadors of the European Union and its 27 Member States, and the Ambassadors of Norway and the United Kingdom
The war of aggression against Ukraine and its implications
24 February 2022 will be marked in history books as the day when Russia brought war back to Europe. Russia’s unprovoked and unjustified invasion of Ukraine grossly violates international law and the principles of the UN Charter and threatens world peace as well as European and global security and stability. It is inflicting unspeakable suffering on the Ukrainian population.
Russia has violated
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