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ECONOMY
EXPORT PERFORMANCE OF MINERAL PRODUCTS REACHES 108 PCT
Between December 24-30, 1.011.5 thousand tons of coal were exported by 7.776 trucks, and 1.646 wagons across the border of Mongolia, which is six times higher amount than the same period of 2021.
In 2022, Mongolia exported a total of 30.295.5 thousand tons of coal. The figure shows the increase of 90 percent compared with the same period of 2021.
Copper: In 2022, 1.409.6 thousand tons of copper concentrate were exported, which is an 11.3 percent growth compared to the same period of 2021.
Iron ore: 10 trucks and 919 wagons, or a total of 4.607.2 thousand tons of concentrate were exported in 2022, which decreased by 35 percent from the same period of 2021.
The total export of mineral products averaged 108 percent. Specifically:
- Coal 168.3%
- Copper concentrate 116.2%
- Iron 91.1%
- Gold 112.5%
- Petroleum 73.5%
- Zinc 137.6%
- Fluorspar 55.9%
Source: Montsame, News.mn
FOREX RESERVES RISE TO 3.4 BLN USD
Mongolia's foreign exchange (forex) reserves rose to 3.4 billion U.S. dollars at the end of 2022, Minister of Economy and Development Chimed Khurelbaatar said Wednesday.
"As of Dec. 31, Mongolia's forex reserves reached 3.4 billion dollars. Therefore, our country was able to avoid a big risk of entering into a program with the International Monetary Fund and declaring default," Khurelbaatar told a press conference.
Due to the deepening of a current account deficit caused by external and internal economic conditions, the Central Asian country's forex reserves had shrunk to 2.6 billion dollars at the end of August, hitting the lowest level since 2017, according to the country's central bank.
Mongolia must make sovereign bond payments in the coming two years, Byadran Lkhagvasuren, governor of the central bank, has said, stressing the necessity to increase the forex reserves as Mongolia will have to repay sovereign debts worth 1.3 billion dollars in 2023 alone.
Source: Xinhua
CENTRAL BANK PURCHASES 22.9 TONS OF GOLD IN 2022
Mongolia's central bank purchased a total of 22.9 tons of gold in 2022 from legal entities and individuals, up 10 percent from the previous year.
As of December, the central bank's average gold purchase price had been 207,625 Mongolian tugriks (60 U.S. dollars) per gram, the Bank of Mongolia said in a statement on Wednesday.
Purchasing gold is one of the key ways for the central bank to ensure economic stability by consistently increasing foreign currency reserves, it said.
Mongolia's foreign exchange reserves stood at 2.9 billion dollars at the end of November, up 5.3 percent from a month earlier, but down 29.5 percent from a year earlier, said the bank.
Central banks across the world typically hold gold as part of their foreign exchange reserves.
Source: China.org.cn
2022 – A YEAR WITH HIGH INFLATION AND PUBLIC BITTERNESS
Highlights:
- State visits symbolize peace and tranquility
- Series of mass protests
- Law amendments allow more ministers to put on ‘double deel’
- Khuvsgul National Park put under UNESCO protection
- Hustle and bustle of education sector
- Fraud of Development Bank, misappropriation of coal exposed
- MSE becomes open joint stock company
- New railways laid after 67 years
- Policy interest rate reaches its highest level in 4 years
- Post-pandemic ‘assessment’
Source: The UB Post
MINIMUM WAGE INCREASED TO MNT 550,000/MO
The National Tripartite Agreement on labor and social consensus has set the national minimum wage to be MNT 3,273 per hour and MNT 550,000 per month from January 1, 2023.
The minimum wage was increased by 31% or MNT 130,000 from MNT 420,000. This decision will be implemented from January 1, 2023.
As of November, 2022 a total of 73,235 people in Mongolia were paid the minimum wage. They are only 9.7% of the total workforce. In January, 2022, the average pension became MNT 550,000. Therefore, citizens criticized the minimum wage is lower than the average pension.
Source: GoGo News
MONGOLIA EYES HIGHER COAL SELLING PRICES FROM FEB 1
Mongolia is looking to sell coal at ex-border prices instead of mine-mouth prices starting from February 1, a move partly to increase its revenue, local media Gogo Mongolia reported.
Erdenes Tavan Tolgoi JSC (ETT) will sell coal at border prices from the start of February, according to J. Ganbat, special representative of the company.
The state-run miner currently sells coal at mine-mouth prices and buyers are responsible for transportation from coal mines to destinations.
The new system is expected to increase sell prices and revenue, help to maintain transportation costs steady, improve the utilization of railway and port infrastructures as well as contribute to the government budget.
From 2021 to now, ETT earned $4.9 billion through coal selling and it could have earned an additional income of $4.2 billion if it sells at border prices, Gogo Mongolia reported.
Source: sxcoal.com
See also: China to re-impose coal import tariffs from Apr 1
OPENING OF NEW LOGISTICS CENTER TO ALLOW 700 TRUCKS TO CROSS BORDERS EVERYDAY
In the framework of the Mongolian government's “New Revival Policy'', the old Zamiin-Uud border checkpoint in Dornogobi aimag is under renovation to meet international standards with the funding of the Chinese government’s non-refundable aid.
As of today, the street lighting, interior, and exterior constructions, and subsurface utility engineering services have been completed in the passenger transport area. Moreover, the facilities, substructures, walkways and driveways, exterior landscaping, underground utility work, and gravel roads have been completed in the 19.72 hectares of passenger transport area. The remaining 14.95 hectares of freight transportation area are currently under construction.
Once the new logistics center is commissioned this July, the capacity of the border checkpoint will be increased by 5 times and over 700 trucks will be able to go through it everyday.
“Zhongmei engineering group” LLC is working as a contractor by order of the Ministry of Finance and the “Development Guide-Infrastructure” project.
Source: Montsame
A NEW ECONOMIC PILLAR: CULTURAL AND CREATIVE INDUSTRY
The cultural and creative industry is described as a big market which generates USD 2.2 trillion and employs over 29 million people in the research report by UNESCO.
It means that this industry is 6.4 times bigger than the mining industry by its export. Therefore, industry specialists believe that we can also benefit from our cultural creative industry by making use of it as one of our economic pillars.
The global art market is shared by North America, Europe, and Asia, according to Deloitte’s Art and Finance report. Especially, in Asia, China is leading the market with its architecture, cinemas, and ceramic arts, while South Korea is also considered one of the leaders by its singers, bands, movies, and television industry.
For Mongolia, the cultural and creative industry has generated USD 481.4 billion, accounting for 1.4 percent of GDP, and created 33 thousand of employment opportunities. Therefore, industry specialists believe that we can also benefit from our cultural creative industry by making use of it as one of our economic pillars.
Source: Montsame
INTEGRATED SOLUTIONS TO RANGELAND DEGRADATION IN MONGOLIA
The Mongolian rangelands have been identified as among the most sensitive to climate change and variability, and degradation has been alarming. Over 70% of the rangelands have changed from their natural state. Figure 1 shows a comparison of the proportions of the rangelands by degradation level in 2014 and 2016. In the 2014 survey, over half of the monitoring sites were observed as healthy, and over 10% were slightly degraded. However, in the following 2016 survey, the number of moderate, heavy, and fully degraded sites had increased.
There are many drivers of rangeland degradation in the literature. Climate factors (precipitation and temperature) are the leading cause of degradation, human activity, and grazing pressure. In such circumstances, herders compensate for their vulnerability, losses of livestock and income due to extreme climate events, and decreases in vegetation by expanding their herds. Losses force herders to compensate by increasing livestock numbers, creating a vicious cycle.
Source: IndraStra.com
MONGOLIA’S POPULATION STANDS AT 3.45 MILLION AT THE END OF 2022
According to B.Batmunkh, Chairman of the National Statistics Office, Mongolia’s population growth has been slowing down since 2020.
The population of the country had grown by an average annual rate of 2.2 percent from 2010 to 2020. However, the average annual growth rate has decreased to 1.5 percent since 2020, due to the slowdown is mainly related to the COVID-19 pandemic and economic difficulties.
On average, 200 to 240 children are born each day, while over 40 people die.
Mongolia’s population stood at 3.45 million at the end of 2022. Back in January 2015, Mongolia’s population hit 3 million.
Mongolia, with a land area of 1,564,116 square km, is the most sparsely populated country in the world.
Source: News.mn
See also: Mongolia's population growth slows down since 2020
GREEN URBAN PLANNING: LESSONS FROM MONGOLIA ON CLIMATE PROOFING CITIES IN COLD REGIONS - PAPER
In cold climates, urban design needs to take into account local topography, standards of living, and microclimatic conditions of the built environment. This paper highlights ways of integrating climate-sensitive design into urban centers to promote resilience, infrastructure efficiency, and livability.
Source: ADB
IS ECONOMIC GROWTH OUT OF THE QUESTION THIS YEAR? - EDITORIAL
Economists say that last year was “burdensome” both financially and economically. For instance, economist G.Batzorig explains that the pandemic and the Russia-Ukraine war contributed to the current bottlenecks but since the opening of the border, the tugrug and the country’s policy rate have strengthened. In general, he pointed out that the profits of enterprises have decreased, the salaries of citizens have not raised significantly and inflation has not gone below 15 percent. Even the government reported that the post-pandemic economic crisis continued last year, causing stagflation in the economy. But it is crucial to consider whether these economic difficulties will continue or improve this year. Therefore, let’s take a look at how the state of our country’s economy has been projected for 2023.
The government announced that it will follow the policy of growing the economy by 5 percent and keeping inflation at a single digit or about 8 percent.
Source: The UB Post
POLITICS
CITIZENS OF 34 COUNTRIES EXEMPTED FROM TRAVEL VISAS TO MONGOLIA FOR NEXT 3 YEARS
In relevance with the government's announcement of 2023, 2024, and 2025 as "Years to visit Mongolia", citizens of 34 foreign countries who will visit Mongolia for up to 30 days are exempted from visa requirements during these three years.
These countries include 32 highly developed countries in Europe, and Australia, and New Zealand. They are the leading countries in terms of the number of citizens who visit Mongolia, and they are the countries that receive Mongolian visas online through www.evisa.mn, which was introduced in October, 2021.
It is considered that visa exemption is important for the development of the tourism industry in Mongolia, the recovery of the economy, and the travel conditions of Mongolian citizens.
Source: GoGo News
MONGOLIA MUST DO MORE TO FIGHT CORRUPTION AFTER PROTESTS: MINISTER
Mongolia must do more to tackle corruption in the wake of claims that officials stole billions of dollars worth of coal, the country's justice minister told AFP, after thousands took to the streets furious over the scandal.
As Mongolians buckle under deepening inflation caused by the pandemic and neighbouring Russia's war in Ukraine, the political class face a reckoning over allegations that a faction of politicians and executives misappropriated coal.
This month, thousands of protesters braved sub-zero temperatures in Mongolia's capital Ulaanbaatar to demand they be punished -- and that the "big fish" encouraging a culture of impunity be called out.
Following those rallies, justice minister Khishgeegiin Nyambaatar told AFP that greater steps must be taken to battle corruption that many Mongolians feel has robbed their country of the vast profits from a mining boom.
Coal is one of Mongolia's biggest earners, with state media reporting in October that the country exports an average of 1,304 trucks of the fossil fuel a day.
Source: Barron's
OVER 100 SCIENTISTS TO CONVENE TO SHAPE NATIONAL CONSULTATIVE POLLING
On December 22, 2022, the Parliament of Mongolia issued a Resolution No.80 "Conducting a Consultative Poll".
Therefore, it was decided to organize a national consultative poll "Let’s consult and decide together". According to this, the academic conference "Let's find a solution" was held today at the Parliament House, and more than 100 scientists and researchers discussed the problems facing Mongolia.
Furthermore, a political discussion will be organized with the participation of political parties and NGOs on January 18.
Source: GoGo News
ISSUES OF SECURED TRANSACTIONS AND PLEDGES OF MOVABLE PROPERTY
The International Finance Corporation of the World Bank Group, in cooperation with the Mongolian Bank Association, has been implementing a program to enhance the supply chain finance market, especially focusing on the increase of loans and financing secured by moveable assets. For Mongolia, the "Law on Pledge of Movable Property and Intangible Property" was enacted and has been in effect since 2015 becoming one of the most frequently discussed legal relations.
Understanding the legal regulations of such relations and application of the law are essential for the growth of loans and financing secured by movable assets. In particular, this law is an economically significant law that provides a mechanism for securing valuable movable property while maintaining the basic concept of ownership in the Civil Code of Mongolia, thereby providing a mechanism for small and medium-sized businesses to obtain the necessary financial needs. In this regard, the concepts and issues of secured transactions and movable property collateral are outlined herein.
Source: Mondaq.com
MEETING HELD ON ZAMIIN-UUD ERLIAN PORT OPENING
An online meeting was held in relevance with the passenger traffic opening at the Zamin-Uud-Erlian road port on the border of Mongolia and China from January 8, 2023.
The online meeting was chaired by N.Ankhbayar, the State Secretary of the Ministry of Foreign Affairs, and presented the situation of work progress to restore passenger traffic at Zamiin-Uud-Erlian road port. The Embassy of Mongolia in China, the diplomats of General Councils of China in Khukh Khot, Erlian and Manjuur cities gave detailed information on the actions taken to open passenger traffic at the border ports of Mongolia and China.
During the meeting, the border inspection agencies paid special attention to the border crossing of passengers at Zamiin-Uud-Erlian road port and actively cooperated with the Chinese party at the local level to organize the border crossing in an orderly, fast and easy way for the public.
Source: GoGo News
AMBASSADOR KATIE SMITH: 30TH ANNIVERSARY OF OUR AUSTRALIA AWARDS PROGRAM WILL BE OUR KEY THEME FOR 2023 - INTERVIEW
We had interview with Ms Katie Smith, Ambassador of Australia to Mongolia. She was appointed as an ambassador to Mongolia in June 2022. The passing year 2022 was a very special year for both countries. Because this year marks the 50th anniversary of the establishment of diplomatic relations. Here enjoy our interesting interview on remarkable end of the year and beginning of the new year.
- More than 60 Australian companies operate in Mongolia, and most of them work in the mining sector. Is it possible to increase this number in the future?
- One of my key jobs is to expand the Australia-Mongolia economic linkages. Our trade and investment relationship is in a good shape and I'm pleased that we have a strong contribution here to the mining sector in terms of our companies bringing new technologies and working to strengthen skills and create employment as well.
Source: GoGo News
TRUST LAW CONCEPT CHALLENGING CIVIL LAW SYSTEM: MONGOLIAN EXAMPLE - PAPER
This article aims to demonstrate that law trust concept can contribute to the improvement of property law as a comprehensive device external to the tradition of the civil legal system. At the same time, an incorrect or incomplete understanding of trust principles may give rise to problems such as the defrauding of creditors, the circumvention of laws prohibiting certain activities or the unfair distortion of the fabric of existing law. While trust law concept originated in common law systems plays an important role in property management system all over the world, especially in financial and banking sectors, the civil law system with its absolute ownership concept and remedial structure based on obligation law still challenge in receipt of the trust law rules. Therefore, this article will cover the standards applicable to trust relationships in the legal systems of the United States of America and Japan, for the purpose of identifying norms that may help in the further development of the property relationship in Mongolia from a legal and economic point of view.
Source: Scientific Research Publishing
GUEST POST: SINO-MONGOLIAN RELATIONS: A NEW ERA? - EDITORIAL
On November 28, Chinese President Xi Jinping held a ceremony in the Great Hall of the People to welcome the state visit of Mongolian President Ukhnaagiin Khurelsuh. A 21-gun salute was fired on Tiananmen Square, and Khurelsuh, accompanied by Xi Jinping, reviewed the honor guard of the Chinese People’s Liberation Army. China welcomed the President of Mongolia with the highest ceremony. The two sides stressed their intention to build the bilateral relations into a “model of state-to-state relations” in the “new era”. It is interesting to note that there were some changes in the definition of the southern neighbor or the state of bilateral relations by the current leaders of Mongolia in post-pandemic time. The Prime Minister of Mongolia emphasized that China is a “golden neighbor,” while the President of Mongolia stressed that the friendship between China and Mongolia is a “steel friendship.”
Source: Mongolia Focus
See also: Mongolia Focus 2022 in Review
MONTSAME NEWS AGENCY NAMES THE MOST SIGNIFICANT VISITS OF 2022 - VIDEO
Montsame News Agency's year-end review of key events from 2022.
Source: Montsame
INDIA-MONGOLIA BILATERAL RELATION RECAP JAN-DEC 2022 - VIDEO
Indian Embassy in Mongolia: India-Mongolia Bilateral Relation recap Jan-Dec 2022
Source: Embassy of India in Mongolia
DIPLOMAT INTERVIEW: MONGOLIAN MINISTER OF CULTURE NOMIN CHINBAT - INTERVIEW
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