Researchers review state of economy

Ulaanbaatar /MONTSAME/ On February 10, forum under the theme “Current state and prespectives of the Mongolian economy" was co-organized by Bank of Mongolia and National University of Mongolia upon the initiative by the Economic Research Institute of Mongolia. 

Opening the meeting, N.Bayartsaikhan, Governor of the Bank of Mongolia said “The today's meeting is divided into two parts, including reports of the economic researchers and the Bank of Mongolia's report on the current situation of the economy. We need joint effort to revive the economy".

The participants of the event noted that the subjects discussed of the meeting are well-timed during the current economic situation. In particular, G.Bumchimeg, researcher at the Economic Research Institute delivered a speech named "Things to focus on the foreign banks in the Mongolia's financial sector". She said that "Economic liberalization is expanding followed by the increasing global integration. In this connection, the percentage and level of foreign investment and participation of foreign banks in the transitional or developing economies have been growing in the past three decades". 

She further noted that it is necessary to pay attention on several issues concerning the legal environment and financial sectors of the country to enable foreign banks to operate in Mongolia. In particular, a term for "foreign bank' included in the Banking law should be clarified, because it is  not clear whether the 'foreign bank' is foreign-invested bank or is a bank established from the 100 percent foreign owned banks. For that reason, it is indispensable to coordinate legal environment and pave the way for the activity"

Afterwards, B.Altantsetseg, Director of NRCC Company made a presentation “Basic survey of determining factors of exchange rate”. In his presentation, she said “The currency fluctuations in Mongolia is higher compared to countries with floating exchange rate and the official reserve fluctuation is greater than countries with fixed exchange rate. This shows that the macroeconomic fluctuations are higher and effects of monetary policy measures to the exchange rates are comparatively lower".

Some other speeches were made during the forum, on topics: Survey on SMEs’ Transaction cost, Large Bayesian Vector autoregressive model: empirical evidence in Mongolia, Coal Market Study, Strees Testing Household Sector in Mongolia, Factors determining exchange rate, Study of Mongolian Middle Class, Mongolian Social Accounting Matrix (SAM) and Policy Analysis, Consideration of foreign bank entry on domestic banking markets and Developing a Dynamic CGE model of the Mongolian Economy. 

Following the speeches, participants of the conference commended the quality of studies made by the lecturers. In conclusion, the participants agreed that the main purpose of the meeting is to show that joint efforts and public-private partnership are the most important features in order to revive the economic growth.