The draft of “The state's monetary policy guidelines for 2025" has been submitted to The State Great Hural (The Parliament)

The Governor of the Bank of Mongolia, B.Lkhagvasuren, submitted the draft of the State’s monetary policy guidelines for 2025 to the Speaker of the Parliament, D.Amarbayasgalan. On this occasion, he emphasized that "the monetary policy for the next year will primarily focus on stabilizing the economy and controlling inflation in the medium term."

Mongolia has successfully navigated economic challenges exacerbated both by the pandemic and geopolitical tensions. As the financial market and the economy is showing signs of recovery, the 2025 Monetary Policy guidelines include the implementation of monetary and financial policies designed to sustain this recovery in the medium term.

More specifically, to support stable economic growth and protect citizens' real income, the monetary policy will focus on stabilizing inflation around 5 percent (with a +/- 2 percentage point interval) in the medium term, guided by market principles. In implementing this policy, the inflation target is set to be reduced to 5 percent beginning 2027. The monetary policy guidelines emphasize that the exchange rate of the national currency (MNT) against foreign currencies shall adhere the principles of flexible stabilization in alignment with macroeconomic fundamentals which includes creating a regulatory environment aimed at increasing foreign investment in the banking sector, strengthening the system for gathering data for sustainable and green financing in the banking sector, and conducting climate risk analysis and stress testing. The 2025 monetary policy guidelines also focuses on the support of the payment systems and new credit information services, as the objectives include enhancing the coordination of supervision and regulation in line with the pace of technological developments, improving the legal environment for creating a system that protects the interests of financial consumers, and implementing strategies to enhance financial literacy. The policies and activities of the Central Bank will aim to ensure that these implementations are open and transparent to the public.

The Bank of Mongolia held its public open discussions with representatives from international organizations, non-governmental organizations, university faculty, researchers, and economists while developing the draft for the government's monetary policy guidelines for 2025.