Today, Minister Ministry of Finance and Mongolbank signs agreement on interest rate of the State Fund reserve at Mongolbank. According to the agreement, Mongolbank will pay as much interest as commercial banks to the State Fund active.
Officials says that “”Agreement will help revive the integrity between fiscal and monetary policy of Mongolia and increase the effectiveness of monetary policy in the economy. As the result, this agreement will bring extra revenue to the state budget and decrease the possible interest at the Mongolbank.
Another provision states that Ministry of Finance of Mongolia shall sell its currency reserve only to Mongolbank.This arrangement will help to increase the currency reserve of Mongolia and stabilize the Mongolian tugrug (currency) rate.
The agreement shall be effective from January 1st 2018.
Shortly after the signature of the agreement MinFin of Mongolia sold $360 million to Mongolbank, which will drive the Mongolian currency “tugrug ₮ gain against US$.