Foreign exchange reserves declined by 12.5%

2017-04-05 14:15 GMT+8

Foreign exchange reserves of Mongolia is declining. Volume of foreign exchange reserves of the country amounted to US$ 1.05 billion at the end of Feb, 2017 reports Central bank of Mongolia.

The report of the Central bank says that the foreign exchange reserve reduced by 12.5 percent compared to same period of last year. 

Foreign exchange reserves peaked at US$ 1.3 billion in Nov 2016.

The Central bank was raising the reserves by monetizing gold purchased from individuals and entities. Moreover, sharp rise in international coal price in the last months of 2016 contributed to increasing currency reserves. 

The agreement between Mongol Bank and the People’s Bank of China to swap MNT for RMB has been extended by three years, which considered to declining external debt burden due to it enables a backup plan to attract foreign sources if needed. 

According to the projection made by the Central bank and the International Monetary Fund, the volume of foreign exchange reserves is able to reach US$ 4.1 billion by 2022. 

Increase in currency reserves will bring positive changes in economy and boost investor confidence in Mongolia.

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