Bank of Mongolia is not to prioritize currency intervention

2016-09-29 16:59:06

Ulaanbaatar /MONTSAME/ Governor of the Bank of Mongolia (Central Bank) N.Bayartsaikhan expressed his position on exchange rate fluctuations. He said: “Foreign currency reserves have gone down due to the interventions over the past years. Thus, the central bank will no longer prioritize currency intervention as key principle in stabilizing the national currency rate”.

“Henceforth, the Bank of Mongolia has utilized an old approach of increasing the policy rate, which has unpleasant impact on the individuals on the surface but brings general stability to the overall economy. The Bank will take gradual steps toward reducing the policy rate once the flow of export and import begins to rise”, he said.