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Exciting news from the Mongolian film scene! The film “If Only I Could Hibernate” is set to nominate for an Oscar, despite the Mongolian Film Council's decision not to support its nomination. Passionate citizens have rallied together, gathering over 8,000 electronic signatures to advocate for the film’s participation in this prestigious ceremony. ❤️‍🔥

Today’s newsletter in 3 sentences:

• ⤴️ ADB revises Mongolia’s GDP growth forecast for 2024.

• ⛏️ One day to go until Mining Week!

• 🙄 Where is the Bank of Mongolia’s monetary policy heading in 2025?

Deep dive 👇

MARKET

• BOM: The government submits a draft of the main direction for monetary policy in 2025.

• OTC: Last week, the OTC market recorded trades worth ₮34 billion and $5 million, with ₮9.5 billion traded in the primary market.

• ADB: The Asian Development Bank revises its growth forecast for Mongolia’s GDP to 5.5% for 2024, a notable increase from the previous projection of 4.1% made in April.

⛏️ Minerals To Millions: Don’t Miss Mongolia's Major Mining Event!

With just one day remaining, "Mining Week & MinePro 2024" is set to be Mongolia’s most significant mining event of the year. This year, the event will feature the renowned “MinePro,” an international mining exhibition, elevating the event's global focus and expanding participation.

Event Highlights

The event will host over 50 Mongolian companies alongside international giants such as the British Export Finance Agency and the London Stock and Metal Exchange. Building on last year's success, which saw 300+ representatives from 20 countries and over 5,000 attendees, this year’s program will feature a 90,000-square-meter open-field exhibition in the Nalaih district. Additionally, more than 10 pavilions and 6 international media organizations are expected to attend.

Investment Alert!

The agenda for days 2 and 3 includes in-depth speeches on global procurement and supplier trends, followed by a dedicated mining finance day featuring supplier showcases from 21 provinces. A key highlight to occur on October 5, during the closed investment session titled "Invest in Minegolia!" to provide mining projects the opportunity to pitch directly to prospective investors. Additionally, experts from the “Big 4” audit firms will be on hand to offer valuable insights into the mining sector. During the "Invest in Minegolia!"

• 🤵💼 Who Will Attend? More than 20 investors from over 5 countries, alongside 20 experienced domestic investors, will gather for this unique opportunity.

• 🐂 Financial Giants: Among the distinguished foreign investors, notable financial institutions, including the Taiwan and London Stock Exchanges, Sprott Family Office, ALLULA Composites, Lion Selection Group, EY, and the European Bank for Reconstruction and Development.

Conclusion

As "Mining Week & MinePro 2024" approaches, it represents an unparalleled opportunity for investors to explore and engage with dynamic mining projects within Mongolia's burgeoning market. 

🔜 BOM’s Monetary Policy Directions Draft For 2025

The Bank of Mongolia (BOM) unveils its draft for the government's monetary policy directions for 2025, outlining a framework aimed at fostering sustainable economic growth. Let’s explore the key components and implications of this draft. 🔍

• 🔑 3 Main Directions of Monetary Policy: As the economy continues to recover from the challenges posed by the Covid-19 pandemic, evidenced by a 5.6% growth in the first half of this year, the BOM anticipates a further increase to 7.3% in 2025. To support this trajectory, the central bank is implementing monetary and financial policies that focus on 3 primary areas.

🎯 Inflation Targeting and Exchange Rate Flexibility 

The current inflation target is set at 6% (±2), with plans to lower this target to 5% by 2027. Additionally, the BOM emphasizes the importance of a flexible exchange rate for the Mongolian MNT in alignment with core economic conditions. This approach enhances the country’s ability to respond swiftly to external shocks. Notably, the Bank withdraws a total of $238 million from the foreign exchange market in the first half of the year to mitigate the volatility of the MNT exchange rate.

🏦 Support for the Banking Sector

The BOM aims to ease restrictions on the ownership of shares in commercial banks by international financial institutions. Specifically, the draft suggests that systemically important banks will be able to conduct IPOs without the previous limitation that prevents any single shareholder from owning more than 20% of total shares. This change is expected to attract more foreign investment in the banking sector.

💁‍♂️ Enhancing Conditions for Foreign Investment

A crucial aspect of the draft policy is the initiative to create favorable conditions for both foreign and domestic investors to invest in MNT. To facilitate this, proposed changes to the law on bank deposit certificates will allow for trading in traditional, callable, and secondary markets. Currently, Mongolian banks primarily issue traditional deposit certificates that are less liquid and come with fixed interest rates.

Conclusion

The draft of the monetary policy directions for 2025 from the Bank of Mongolia introduces several significant measures aimed at stabilizing the economy and fostering growth. As these proposals are further discussed and refined, the focus will be on implementing strategies that not only support economic recovery but also enhance investor confidence in Mongolia's financial landscape.

⭐ Selected for you

ECONOMY & BUSINESS

• UK-Listed Player Targets ‘Significant Resource Potential’ With New Mongolia Well. (Upstream)

• Over ₮1 Trillion Loaned For Mortgages This Year. (iKon)

• Capital Markets Mongolia LLC Announces Mongolia Investment Forum: Singapore 2024. (Yahoo!Finance)

• Mongolia To Launch Open International Bid To Select Management For Coal Giant. (IntelliNews)

POLITICS

• U.Khurelsukh: Let's Create A World Free Of Nuclear Threats. (President)

• 8 Types Of Incentives For IT Companies Registered In Virtual Zones. (MDDC)

• Health Unit To Be Established For Mongolians In Turkey. (TheUbPost)

• The Initiative To Supply Affordable, High-Quality Medicines To Begin Next Month. (MOHS)

• Renaming Of “The Agency For Fair Competition and Consumer Affairs” To “Anti-Monopoly Agency.” (eagle.mn)

• UAE Ambassador Presents Credential To President Of Mongolia. (President.mn)

URBAN TRENDS

• License Plate Trading Flourishes In UB. (TheUbPost)

• Chinese Speech Contest Held For Mongolian Middle School Students. (People’sDailyOnline)

• World Boxing Cup Kicks Off In Ulaanbaatar. (ANN)

• 2026 Diversity Visa Program To Launch Next Eeek. (U.SEmbassyinMongolia)

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ch.Battseren

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.