Q: How can we get through the world economy recession?
MP: O.Chuluunbat: The situation is changed so much since the last election. Even the situation is changed since the budget discussion. We are facing the situation of to be or not to be in this time of crisis. Therefore, budget modification must be made and investments must be suspended. Also budget debt must be lowered. In last 3-4 months combanks limited their loans and even some of them stopped it. It is obvious that how this crisis affects our economy. Also the train transportation circulation has fallen by 30-40%. Import size is shrunk, leading less income for companies and less tax income to the state. The market has deficit of money and situation is critical for many people’s life.
Q: What measures can be taken from the Bank of Mongolia side?
MP O.Chuluunbat:Bank of Mongolia sold 500-600 million US$ in order to eliminate the US$ deficit. The Bank of Mongolia also withdrew same size of MNT from the market. In such difficult environment, monetary policy must be modified also.
Q: How to modify the monetary policy?
MP O.Chuluunbat: Combanks need money now. Supporting business and increasing production we will increase our domestic demand. Therefore, more money must be provided into the market.
Q: Currency reserve is getting low. How can we increase our reserve?
MP O.Chuluunbat: Of course we have. In order to increase currency income, Bank of Mongolia can draw currency prior to the black market. When I was President of Mongol Bank, I draw gold income in such a way. We can increase our currency income.