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Good morning! We have a special message for basketball lovers. Mongolia is ready to welcome some of Asia’s best basketball teams as Ulaanbaatar hosts the BCL Asia-East Final 4 at UG Arena on May 30–31. It’s a huge moment for basketball fans across the country. Get ready for top-level action right here at home!

Today’s highlights in 3 sentences…

• ❄️ The economy is cooling down

• 🤑 Khan Bank lands a $145 million funding package

• 🙄 5 Reasons to Work in Mongolia

Ready to Dive in?

MARKET

MNG: Mongolia’s economy slows sharply, with growth falling to 2.4% in Q1 2025 from 7.9% in the same period last year.

MFA: Foreign Minister B.Battsetseg is scheduled to pay an official visit to the Philippines from May 19 to 20.

KHAN: Tata Consultancy Services (TCS), an Indian multinational technology company, will deploy its BaNCS Global Banking Platform to modernize Khan Bank’s core banking system.

🌠 Mongolia Switches On 5G Nationwide

Mongolia has officially launched its 5G network, marking a major step forward in the country’s digital transformation. Licenses for 5G deployment have been granted to the 5 major telecom operators, Unitel, Mobicom, Skytel, GMobile, and ONDO.

🚶🏻‍♂️ Unitel Leads the Way

Mongolians first experienced 5G in 2022 when Unitel introduced the country’s very first 5G pilot site in Ulaanbaatar. A year later, the company expanded its efforts by rolling out pilot networks across all 21 provincial centers, laying the groundwork for today’s full-scale nationwide launch. Today, Unitel remains one of the country’s most extensive network operators, with an average of 79% of the population across the 21 provinces using its services in some form.

• 📜 A Vision for the Future: As the leading player in Mongolia’s 5G expansion, the CEO of Unitel Group said, “This launch marks the beginning of a new business ecosystem. 5G isn’t just about speed. It offers low-latency and high-capacity connectivity that opens new opportunities in manufacturing, logistics, healthcare, and education. It enables innovation, reduces costs, and supports broader economic growth.”

✅ Target for 2027

With this rollout, Mongolians now join over 2 billion people worldwide who have access to 5G services. As the technology becomes a key driver of innovation, Mongolia aims to achieve 5G coverage for 70% of its population by 2027.

• 🤲🏻 5G technology promises dramatically faster speeds, lower latency, and greater reliability compared to previous generations. It is expected to revolutionize sectors such as healthcare, education, logistics, and manufacturing by enabling advanced technologies like artificial intelligence, automation, the Internet of Things (IoT), and remote operations.

Overall... Although Mongolia may be a latecomer to 5G compared to more developed nations, the opportunities and advancements following the rollout of this next-generation network promise significant progress and transformation ahead. With this milestone, Mongolia positions itself not just as a technology adopter but as a future-ready, connected nation prepared to harness the full potential of the digital age.

⭐ Selected for you

ECONOMY & BUSINESS

• EBRD Organises $145 Million Package for Mongolia’s Khan Bank. (EBRD)

• Mongolia Has Incurred Losses of Approximately ₮4.3 Billion Due to Forest Fires Since the Beginning of 2025. (iKon)

• EBRD and EU Step Up Support for MSMEs in Central Asia and Mongolia. (EBRD)

POLITICS

• Views Exchanged on Supplying Crude Oil to the Oil Refinery Plant Post-Commissioning. (Montsame)

• President U.Khurelsukh Affirms He Won’t Change Constitution to Run for Third Term. (UBN)

• Mongolian Youth Rally For 5 Days Urging PM To Resign. (InsideMongolia)

• Air India is Using Mongolian Airspace for the US and Canada Flights. (AvaitionA2Z)

• Construction of the Second China-Mongolia Railway Begins After 70 Years. (Ecns)

CULTURE & LIFESTYLE

• New Mammal Species From the Age of Dinosaurs Discovered in the Gobi Desert. (ScitechDaily)

• 5 Reasons to Work in Mongolia. (MTN)

🏦 Bank of Mongolia Ends 5-Year Losses with 2024 Profit

Since 2017, the Bank of Mongolia’s total assets have surged by 150.4%. Yet, despite this significant growth, the central bank experienced consecutive annual losses between 2019 and 2023, totaling ₮3.4 trillion. In 2024, however, it marked a financial turnaround, reporting a net profit of ₮306.2 billion, its first return to profitability in 5 years.

🧐 Why Does Profit Matter?

Although the Bank of Mongolia is not mandated to operate for profit, maintaining profitability carries broader significance. It contributes to economic stability, strengthens public finances, and enhances the country’s international credibility. By law, the central bank must allocate at least 40% of its annual net income to the General Reserve Fund and can contribute up to 60% to the state budget, further reinforcing its role in supporting fiscal resilience.

• 🔍 What Drives Profitability? Several factors influence the Bank of Mongolia’s profitability, including returns on foreign exchange reserves, interest income from loans extended to commercial banks, inflation trends, and policy costs tied to maintaining exchange rate stability. 

• Notably, during the 2019–2023 loss-making period, the policy interest rate remained relatively low, dipping to 6% at one point. While lower rates generally reduce borrowing costs and could support profitability, the prolonged losses during this period raise questions about underlying financial pressures.

• 💸 External Debt: On the external debt front, the Bank has been gradually reducing its liabilities since the fourth quarter of 2021. However, a significant repayment of $1 billion still looms ahead.

📑 Key Takeaways from the Report

The bank successfully reversed a multi-year loss trend. It continues to fulfill its core mandates, price stability, ₮ exchange rate management, and banking sector oversight. In 2024, interbank transaction volumes increased by 45% year-over-year, surpassing the ₮1 quadrillion mark.

Bottom Line… After 5 years of losses, the Bank of Mongolia is back in the black. Looking ahead, the key challenge will be to control inflation and maintain currency stability without triggering new economic imbalances.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

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.