OTC MARKET | TRAVEL GUIDE | EXPORT MONGOLIA

Hey there! We are happy to announce that from now on you’ll be enjoying a special section named “Export Mongolia” in our newsletter, which we will be preparing in cooperation with The Export International Trade Center. Scroll down for more info. 👇

  📌 DID YOU KNOW?

Love rankings?

• Mongolia ranks 68th out of 146 countries in the World Happiness Report 2022, faring comparably low on healthy life expectancy. (WHR)

• By the Human Development index we place 99th out of 189 nations, between Suriname and Botswana. (UNDP)

• Mongolia’s the 78th out of 149 countries on the Good Country Index Report that measures what nations contribute to the world outside their own borders, and what they take away. (Goodcountry)

• By area Mongolia is the 19th largest country in the world, and the 2nd biggest - among landlocked nations. (WorldAtlas)

📈 MONGOLIA'S NEW OTC MARKET

It’s been half a year since the introduction of an Over-the-Counter (OTC) Market in Mongolia’s investment world. This has unlocked new opportunities in investing and financing for both individuals and companies. 

OTC explained: Compared to trading securities on exchanges, trading on the OTC Market can provide a higher yield along with higher risk. Moreover, the OTC Market saves securities issuers time and money, attracts short-term financing, creates a secondary market for privately placed issuances for professional investors, improves liquidity, and provides transparency.

The Mongolian bond market features two types of corporate debt instruments. They may be publicly offered (referred to as open) or privately placed (referred to as closed). All publicly offered debt instruments are required to be registered with the Financial Regulatory Commission (FRC), deposited at the Mongolian Central Securities Depository (MCSD), traded on an exchange, and transferred electronically. With the start of the OTC market, however, more and more privately placed bonds are being issued and companies are able to raise capital through bond issuance rather than through bank loans which have less favorable terms and higher interest rates.

How much was raised? 

Since the establishment of the OTC legal environment, 28 companies have issued privately placed bonds. In just 6 months, 68 securities worth $239.4 million (MNT 700 billion) have been registered, of which $119.7 million (MNT 350 billion) has been successfully raised to date. The average annual interest rate on these bonds is 14.5% (MNT). 

Getting Involved 

The OTC trading platform, which has digitized the whole process of registration, issuance, trading, and settlements of securities, is available to professional investors through respective security brokers at otc.mn. 

• Direct participants: These are securities companies licensed to operate in the securities market, and only they are allowed to trade.

• Indirect participants: Individuals or companies that meet the general regulations of the FRC and OTC will trade through brokers.

• Trading: No price is displayed on the OTC platform. Requests will be negotiated between the two parties through a Market maker (Securities Company)

• Trading Fees: The OTC platform charges no fees. However, brokerage firms may charge a service fee.

In the big picture 

The development of the Over-the-Counter market will help companies issue bonds domestically, raise low-cost financing in the short term, and open up more options for investors to raise capital. As more privately placed bonds with higher yields than deposit rates are issued and the number of investment options in Mongolia expands, be sure to look out for good, low-risk companies to invest in. 

📢 ​FIRST MORIN KHUUR FESTIVAL IN EUROPE

First things first, what’s morin khuur? 

The morin khuur, a.k.a the horsehead fiddle, is a traditional bowed stringed instrument that’s regarded as a cultural symbol of Mongolia and is one of the Masterpieces of the Oral and Intangible Heritage of Humanity identified by UNESCO.

👂🎵👀:

• Morin Khuur solo by N. Jigjiddorj

• Mongolian State Morinkhuur Ensemble

• Actual horses listening to the morin khuur for the first time in their lives

The festival: 

After having been postponed for 2 years due to Covid-19 restrictrictions, the festival will finally be held in Europe this May. The agenda includes various activities, such as masterclasses, talks, concerts etc. There will also be a competition among amateur morin khuur players. So, if you happen to be learning the horsehead fiddle, don’t hesitate to register HERE to compete.  

Event details: 

• When: May 28-29, 2022

• Where: Volkshochschule Hallstrasse 5, 85055, Ingolstadt, Germany

• More info: HERE

🧳 THE GO TO TRAVEL GUIDELINE

There’s almost an infinite amount of websites about traveling to Mongolia on the internet, but it can be a real challenge to find what’s actually necessary. So, our team at Inside Mongolia sat down and came up with an array of essential information an average tourist needs. Here’s the wrap-up. 

First and foremost

• Visa: Visas are mostly online now, so apply here if you do actually need one. In case your country is not included in the online form, you’ll have to visit one of the diplomatic missions of Mongolia, the list of which is available on the website of the Foreign Ministry’s Consular Department.

• Covid-19: Mongolia fully opened its borders to international travel from February 14, 2022. No negative PCR or rapid test results, and obligatory quarantines are required before and after your departure. However, keep in mind that China’s still keeping its borders to Mongolia closed - even though you can enter Mongolia hassle free, you have to make sure you can also leave unproblematically. 😅

• Plane or train: Flights are run all year round by MIAT Mongolian National Airlines to and from a number of cities globally. Foreign airlines such as Aeroflot, Air China, Korean Air etc. also operate flights connecting Ulaanbaatar with the rest of the world. The full list of available airlines you’ll find on the website of the Chinggis Khaan International Airport. If you’re into traveling by train, there’s the Trans-Mongolian railway which connects Moscow and Beijing and passes through Ulaanbaatar.

• Packing essentials: Various lists are available on different websites, but one indispensable item that most of them don’t mention is sunscreen. Regardless of the season, the weather in Mongolia is brutal. If you don’t want red spots, burns, or weird pigmentation, don’t forget to grab the sunscreen that fits your skin.

During the trip

• Know where to search: The primary social media Mongolians use is facebook. There are many travel groups, but most of them have become quite inactive due to the pandemic. If you can’t get help from these groups contact the Tourist Information Center, or any travel agency. 

• Get local: Find new friends at the BlaBla Language Exchange event where you might as well bump into a local who speaks your mother tongue. 😉 If you want to get acquainted with other foreigners who are in the city, go to Millie’s Cafe, or The Green Zone.

• Commuting: For transportation within Ulaanbaatar download UBCab and UB Smart Bus. In fact, everything in the city is pretty much within walking distance. So, considering the traffic, we recommend using your feet. 

• Accommodation: If you’re not sure where to stay visit iHotel.mn, a website that offers housing both in and outside Ulaanbaatar. Airbnb is also available!

• Internet: Unless you’re in the countryside, wi-fi can be found almost everywhere - from supermarkets to hotels. Just ask!

In the end

• Google is your friend.

• Google translate is your best friend.

• Not into planning at all? Choose a travel agency. There’s a myriad of them on Google.

• The countryside is a whole different world. Don’t expect anything, be prepared for everything.

• Horses are cute, but can be dangerous. Same goes to camels.

• Don’t worry much, things will work out. 

🔔 EXPORT MONGOLIA

This section will be covering exclusive news about the international business of Mongolian companies, information about partnerships, projects, and other relevant topics that we will be preparing with the help of The Export International Trade Center (EITC).

About the partner: The EITC is a non-profit organization that aims to support the expansion of Mongolian companies abroad by offering logistic services, assisting in setting up online trade opportunities, holding educational seminars, and organizing international business events.

Upcoming EITC events include: 

• Mongolia-Japan Business Forum and Exhibition in Ulaanbaatar

• Forum for Trade, Investment, and Cultural Heritage of Mongolia in North America that will be organized in Toronto and Washington, D.C.

• “Export Mongolia - 2022” International Business Forum and Exhibition in Ulaanbaatar

• China International Import Expo 2022 in Shanghai

The most important: Due to the pandemic the EITC business forums had been held online for the past two years, but this year they are finally going “offline”. We’ll report about the event details a little later. The only thing you have to know now is that the EITC forums are a great chance to:

• Get familiar with Mongolia’s business sector

• Find your next partner

• Unlock investment opportunities

• Discover new business frontiers

• Network

So, wait for the next editions! 😉

*This article was prepared in partnership with EITC.

🏃 QUICK STORIES

📌 Ministry of Foreign Affairs sent a note verbale to the Russian Embassy protesting the post addressed “To the attention of the Mongolian Democratic Party members and supporters of the US liberal monarchy" on the official FB page of the Russian Embassy in Mongolia. Regular citizens also gathered before the Embassy's building in peaceful protests, holding "NO WAR" banners. 

📌 Central Bank of Mongolia sets policy rate at 9.0%, a 2.5% hike. Due to recent Tugrik depreciation, rising geopolitical tension and supply chain disruptions, commodity and food prices have increased sharply. Monetary policy stance is being tightened and the forecast of economic growth was lowered from 5% to 2.6% for 2022, given the risks of higher inflation expectations. 

📌 UN names 2026 as the International Year of Rangelands and Pastoralists. The relevant resolution was initiated and spearheaded by Mongolia, and supported by 61 Member States representing all regions of the world. The International Year of Rangelands and Pastoralists aims to raise awareness and advocate for the value of healthy rangelands and sustainable pastoralism.

📌 Tracking system of origin and quality of livestock raw materials developed by the Swiss Agency for Development and Cooperation was received by the Ministry of Food, Agriculture, and Light Industry with its intellectual property rights. The system allows to track domestic dairy sourcing and production, employ herd management, pasture monitoring and more.

📌 Mortgage payments deferred until the end of 2022. Mortgage payments were initially deferred in April 2020 and have been extended as the effects of the pandemic haven't fully subsided. No principle or interest will be paid during the deferred loan period and the loan classification will remain unchanged. It is up to the borrower whether to defer or not.

📷 A GLIMPSE OF MONGOLIA

About: A paiza or gerege is a metal tablet that was carried by the Mongol Empire’s ambassadors to  signify their authority among ordinary citizens. Gereges were also issued to foreign merchants and envoys, enabling them to easily navigate within the empire. 

Use case: Famous explorer of the 13th century Marco Polo was once given a paiza by Khubilai Khan, which was inscribed with the words: “By the power of eternal heaven, this is an order of the Great Khan. Whoever does not show respect to the bearer will be guilty of an offense.” It wouldn’t be a lie to say that it was thanks to the gerege that Marco Polo safely returned to Venice after his journey through the Mongol Empire. 

Want to know more? 

• The First Universal Token known in the World as a Foreign Passport 👉 (Link)

• The golden gerege gifted to the UN by the Mongolian Government in 2000 👉 (Link)

ESSENTIAL LINKS

• Not sure where to eat in Ulaanbaatar? Food and drink reviews in English. (Dodddo0)

• What Genghis Khan's Mongolian sounded like? (NativLang)

• Food security snapshot of Mongolia. (FAO)

• Are the Mongolian stereotypes true? (Real Mongolia)