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16th of January 2018

Mongolia



Parliament discusses key issues before the end of the year

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The American Chamber of Commerce in Mongolia

2017-12-25 14:59 GMT+8 the Governor of the Bank of Mongolia N. Bayartsaikhan

Parliament established a Budget Sustainability Council during its December 22 plenary session.

The council will mainly focus on researching and analyzing the coherence of the state budget and its amendments, drafting recommendations for legislators, reviewing mid-term budget announcements, and developing the economy and society with amendments to the Law on Fiscal Stability.

Amendments to the law will be focused on ensuring the sustainability of the state's budget and financing, as well as the efficacy of the state budget. The council will consist of chairman and eight staff members. Parliament supported proposed customs and value-added tax exemptions for certain energy imports upon their first review.

The exemptions will reduce import costs for state-owned Western Energy System's energy imports from China and Russia through January 1, 2021. During the session, the Governor of the Bank of Mongolia N. Bayartsaikhan spoke about reducing the foreign currency exchange rate and strengthening the purchasing power of the tugrug.

The BoM stated that it agreed with MP T. Ayursaikhan about disabling foreign exchange accounts except for those held by entities, individuals, banks, and non-banking financial institutions that have forex income, but the BoM noted that the process should be carried out through market mechanisms rather than a direct ban.

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