On April 28, G.Enkhtaivan, Deputy Governor of the Bank of Mongolia (BoM), addressed a press conference to outline new measures aimed at supporting commercial banks that successfully attract long-term external resources.
During the briefing, G.Enkhtaivan noted that foreign funding within the banking sector has been increasing, though these resources were previously excluded from mandatory reserve calculations. Following a recent decision by the Monetary Policy Committee, the central bank will now actively support banks in securing long-term foreign funding. This policy is intended to alleviate potential pressure on the tugrik exchange rate and the balance of payments, both of which remain vulnerable to volatility in international markets.
The move comes amid heightened global uncertainty, with Enkhtaivan citing Middle East instability and Brent crude oil prices hitting $110 per barrel this morning. Currently, foreign assets make up 25 percent of commercial bank resources, and the BoM aims to stabilize these holdings to ensure systemic financial health over the coming years.
To support this initiative, the central bank will facilitate currency swaps and assist in converting foreign resources with maturities exceeding 360 days into tugriks.
On April 28, G.Enkhtaivan, Deputy Governor of the Bank of Mongolia (BoM), addressed a press conference to outline new measures aimed at supporting commercial banks that successfully attract long-term external resources.
During the briefing, G.Enkhtaivan noted that foreign funding within the banking sector has been increasing, though these resources were previously excluded from mandatory reserve calculations. Following a recent decision by the Monetary Policy Committee, the central bank will now actively support banks in securing long-term foreign funding. This policy is intended to alleviate potential pressure on the tugrik exchange rate and the balance of payments, both of which remain vulnerable to volatility in international markets.
The move comes amid heightened global uncertainty, with Enkhtaivan citing Middle East instability and Brent crude oil prices hitting $110 per barrel this morning. Currently, foreign assets make up 25 percent of commercial bank resources, and the BoM aims to stabilize these holdings to ensure systemic financial health over the coming years.
To support this initiative, the central bank will facilitate currency swaps and assist in converting foreign resources with maturities exceeding 360 days into tugriks.