Abstract
Medium- to long-term prospects are promising given Mongolia’s large natural resources.
Fund Relations
(As of January 31, 2015)
Membership Status: Joined: February 14, 1991; Article VIII
General Resources Account:
| SDR Million | Percent Quota | ||
| Quota | 51.10 | 100.00 | |
| Fund Holdings of Currency | 52.88 | 103.49 | |
| Reserve Position in Fund | 0.14 | 0.27 | |
| SDR Million | Percent Quota | ||
| Quota | 51.10 | 100.00 | |
| Fund Holdings of Currency | 52.88 | 103.49 | |
| Reserve Position in Fund | 0.14 | 0.27 | |
SDR Department:
| SDR Million | Percent Allocation | ||
| Net cumulative allocation | 48.76 | 100.00 | |
| Holdings | 42.93 | 88.05 | |
| SDR Million | Percent Allocation | ||
| Net cumulative allocation | 48.76 | 100.00 | |
| Holdings | 42.93 | 88.05 | |
Outstanding Purchases and Loans:
| SDR Million | Percent Quota | ||
| Stand-by Arrangements | 1.92 | 3.75 | |
| SDR Million | Percent Quota | ||
| Stand-by Arrangements | 1.92 | 3.75 | |
Latest Financial Arrangements:
Projected Obligations to Fund (SDR Million; based on existing use of resources and present holdings of SDRs):
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2018 | 2019 | |
| Principal | 1.92 | ||||
| Charges/interest | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 1.93 | 0.00 | 0.00 | 0.00 | 0.00 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2018 | 2019 | |
| Principal | 1.92 | ||||
| Charges/interest | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 1.93 | 0.00 | 0.00 | 0.00 | 0.00 |
Safeguards Assessments:
An update safeguards assessment of the Bank of Mongolia (BOM) finalized in June 2009 found that the BOM has continued to improve its safeguards framework since the previous assessment. The BOM’s financial reporting and audit practices generally comply with international standards. The assessment made recommendations to (i) strengthen certain aspects of the BOM’s oversight mechanism, (ii) remove external audit qualifications caused by lack of access to central bank’s vaults, and (iii) improve the timeliness of audit completion and publication of the bank’s financial statements. The authorities have since confirmed that the auditors were granted access to its vaults since end-2009, and the timing of audit completion has improved.
Exchange Arrangement:
On March 24, 2009, the BOM instituted a foreign exchange auction allowing the determination of the exchange rate mainly by market forces. The de facto and de jure exchange rate arrangements are currently both classified as floating, though the de facto exchange rate arrangement could potentially by reclassified to “crawl-like,” pending further observation. (through end-May 2015).
Mongolia accepted the obligations of Article VIII, Sections 2, 3, and 4 on February 1, 1996. Mongolia maintains two multiple currency practices (MCPs) subject to Fund jurisdiction. First, the modalities of the multi-price auction system give rise to an MCP since there is no mechanism in place that ensures that exchange rates of accepted bids at the multi-price auction do not deviate by more than 2 percent. The Executive Board approved the multi-price auction MCP until June 22, 2010 (Decision No. 14365 of June 23, 2009), and it’s further extension until March 15, 2012 or the next Article IV consultation whichever is earlier (Decision No. 14669 of June 23, 2010 and Decision No. 14365 of March 16, 2011). The MCP, however, could not be resolved by March 15, 2012, and would be continued as long as the multiple price foreign exchange auction mechanism remains in place. Therefore the MCP is unapproved, and since the criteria for approval of this MCP are not in place, staff does not recommend Executive Board approval of said measure. In addition, Mongolia has an official exchange rate (reference rate) that is mandatorily used for government transactions (as opposed to the commercial market rate). Therefore, by way of official action, the authorities have created a market segmentation. While Order #699 of the BOM issued on December 3, 2010, sets forth that the reference rate is determined based on the weighted average of market rates used from 4 PM of the previous day to 4 PM of the current day, staff is of the view that this Order does not eliminate the market segmentation and the multiplicity of effective rates arising from it. Accordingly, in the absence of a mechanism to ensure that the commercial rates and the reference rate do not deviate by more than 2 percent, the way the reference rate is used in government transactions gives rise to an MCP subject to Fund approval. Since the criteria for approval of this MCP are not in place, it remains unapproved. Mongolia imposes exchange restrictions for security reasons in accordance with United Nations Security Council Resolution No. 92/757 concerning certain transactions with the Federal Republic of Yugoslavia (Serbia and Montenegro) that have been notified to the Fund under Decision 144 (11/4/94).
The BOM notes that hitherto there have been no cases where exchange rates of accepted bids at the multi-price auction deviate by more than 2 percent, and plans to introduce a mechanism to ensure the deviation would never exceed 2 percent. The BOM is also working on the development of an indicative spot exchange rate.
Article IV Consultation:
The 2013 Article IV consultation (IMF Country Report No. 14/64) was concluded by the Executive Board on November 15, 2013. Mongolia is on a 12–month cycle.
ROSC Assessments:
The following ROSC assessments have been undertaken: Data Dissemination (May 2001), Fiscal Transparency Module (November 2001), Fiscal update (May 2005), Data Dissemination (April 2008), Monetary and Fiscal Policy Transparency (September 2008), Banking Supervision (September 2008).
Recent Financial Arrangements:
An 18-month Stand-by Arrangement in an amount of equivalent to SDR 153.3 million (300 percent of quota) was approved on April 1, 2009. The Executive Board successfully completed the final review on September 8, 2010.
FSAP Participation:
Mongolia participates in the Financial Sector Assessment Program (FSAP). The first, second, and third FSAP missions took place in May 2007, September 2007 and November 2010 respectively. The latest report (IMF Country Report No. 11/107) was published in May 2011.
Technical Assistance in 2014–2015:
Missions:
Medium Term Budget Framework (FAD), March 2014 and January 2015
Banking supervision (MCM), January - February 2015
External sector statistics (STA), May, June and October 2014 and February 2015
Strengthening LTO (FAD), May, June, August and September 2014 and January 2015
Treasury operations (FAD), March and October 2014
Cash management (FAD), April 2014
AML/CTF (LEG), October 2014
SDDS assessment (STA), October 2014
Price statistics (STA), October 2014
Resident Representative:
The resident representative position was discontinued in September 2011, though the office remained open, staffed by local economists, and managed remotely by a non-resident representative—most recently, Ms. Yuko Kinoshita—who was based in the IMF’s Regional Office for Asia and the Pacific in Tokyo. As of April 2014, Mr. Neil Saker will take up his assignment as resident representative based in Ulaanbaatar.
World Bank-IMF Collaboration
1. World Bank and IMF country teams maintain a close working relationship. The teams, led by Ms. Chorching Goh (Lead Economist, GMFDR) and Mr. Koshy Mathai (Mission Chief) collaborate on a range of macroeconomic and structural issues.
2. Cooperation and coordination is exemplary. It pertains to the following:
IMF surveillance. World Bank staff participates in Policy Consultation Meetings ahead of Article IV consultation missions and comments on staff reports. World Bank staff also participates in selected meetings of the Article IV mission team with the authorities. This facilitates the discussions, especially as regards policies in areas of mutual interest such as bank restructuring, social welfare reform, and fiscal policy.
Development Policy Credits (DPC) and Country Partnership Strategy (CPS). In turn, Fund staff participated in the design and review of the Bank’s DPCs and was kept informed about the development of the Bank’s new CPS for FY13–17.
Banking system issues. Both country teams have been active in this area, including by fielding technical assistance missions. The teams coordinate closely to provide the authorities with consistent advice while avoiding unnecessary duplication of efforts. The two teams also continue to educate the public and parliamentarians on banking sector issues in an effort to build support for reforms.
Structural reforms. Staff of the IMF and the World Bank have worked together successfully to provide technical assistance in expenditure management, the Fiscal Stability Law, the Integrated Budget Law, the Social Welfare Law, the Investment Law, and taxation of the mineral sector and on-going work on the Sovereign Wealth Fund Law. Staff also actively collaborated in the first assessment of Mongolia’s PFM system using the Public Expenditure and Financial Accountability (PEFA) framework.
Policy Outreach. Both country teams jointly hosted a high-level conference on macro-economic outlook as a forum for discussing economic developments and key challenges with key policy makers.
3. Based on the close collaboration, the World Bank and the IMF share a common view about Mongolia’s macroeconomic and structural reform priorities. These include:
Promoting long-term growth. Managing the mineral wealth to ensure strong, sustainable, and equitable growth with low inflation. This includes the importance of avoiding the “resource curse” and the productive use of mineral wealth management.
Macro-economic stability. This includes ensuring that the boom-bust policies of the past are not repeated. The Fiscal Stability Law adopted in 2010 with the support of the IMF and the World Bank is a key step, and it is critical that it be strictly adhered to from 2013, the first year the law is effective. At the same time, fiscal policy also has to be mindful of the macroeconomic policy mix and medium and long-term fiscal sustainability.
Monetary policy. The Bank of Mongolia (BOM)’s large monetary stimulus, through its so-called “price stabilization program,” mortgage program, and liquidity injection, distorts markets and is bound to ratchet up inflation. The stimulus program should be phased out and the BOM should focus on further strengthening the monetary policy framework. The flexible exchange rate regime should be maintained.
Protecting the poor. The 2012 Social Welfare Law envisages replacing existing costly universal cash transfers with means-tested benefits that would reach the poorest households. Full implementation of the law would represent a big step forward in strengthening the social safety net and increasing fiscal flexibility. Concrete action following the adoption of the law is important from a socio-economic perspective as well as a fiscal perspective.
Strengthening the banking system. Key steps include continued improvement in bank regulation and supervision, ramping up risk disclosure and management—especially given elevated systemic risks in the sector illustrated by the recent failure of Saving Bank—and strengthening the newly established Mongolian Deposit Insurance Corporation.
4. The teams agreed to continue the close cooperation going forward. Table 1 details the specific activities planned by the two country teams along with their expected deliveries. It was also agreed that further details on collaboration, as necessary, would be agreed at the technical level as work progresses.
Mongolia: Bank and Fund Planned Activities in Macro-Critical Structural Reform Areas
Mongolia: Bank and Fund Planned Activities in Macro-Critical Structural Reform Areas
| Products | Expected Delivery Date | |
|---|---|---|
| Bank Work Program |
Analytical and Advisory Services
|
|
Operational
|
|
|
| Fund Work Program |
|
|
Mongolia: Bank and Fund Planned Activities in Macro-Critical Structural Reform Areas
| Products | Expected Delivery Date | |
|---|---|---|
| Bank Work Program |
Analytical and Advisory Services
|
|
Operational
|
|
|
| Fund Work Program |
|
|
Relations with the Asian Development Bank2
Mongolia became a member of the Asian Development Bank (AsDB) in February 1991. The AsDB has been Mongolia’s largest source of multilateral development finance for more than two decades and since Mongolia joined AsDB, the country has received 60 loans totaling US$1.3 billion, 12 Asian Development Fund grants and 2 Japan Fund for Poverty Reduction (JFPR) grants for US$218 million. In addition, 184 TA and JFPR TA grant projects with total value of $110.9 million have been implemented and AsDB has supported trade through its Trade Finance Program, with a total value of $106 million. AsDB has also approved 2 ongoing financing facilities for urban development and urban transport, with up to $377 million currently available for drawdown.
In 2011, Mongolia gained access to AsDB’s ordinary capital resources (OCR), alongside AsDB’s concessional lending from ADF; however Mongolia no longer has access to ADF grant financing. Given its AAA credit rating, AsDB makes funding available for development projects on highly favorable terms. This change was welcomed by the Government of Mongolia as large amounts of capital are needed to finance infrastructure investments and, improvement of social services, and to address urgent environmental problems.
AsDB has provided financial, technical and policy support in areas ranging from urban infrastructure, agriculture, energy, finance, education, health, to social protection and transport. AsDB has also provided over $100m private sector financing for commercial banks.
The Mongolia Country Partnership Strategy (CPS) 2012–16 was approved by AsDB’s board in April 2012. The CPS is prioritizing (i) transport, energy, and water supply infrastructure; (ii) access to education and health; and (iii) regional economic cooperation in order to support sustainable and inclusive growth of economy. In August 2014, reflecting changed government priorities and to meet AsDB’s focus on employment creation and economic diversification, two strategic adjustments was made to the Interim CPS 2014–2016: (i) the inclusion of two additional sectors (agriculture, natural resources and rural development; and finance); and (ii) scaling up OCR resource allocations to meet pressing development needs, from $50m annually to $200m.
For 2015, AsDB has offered to provide loans for US$200 million and US$72 million from OCR and ADF funding sources, respectively. In addition, technical assistance worth US$11 million and JFPR grant worth US$10 will be provided.
AsDB’s operations will concentrate on the following sectors in the following years:
Transport. Transport is the largest sector of AsDB operations in Mongolia. Under the Central Asia Regional Economic Cooperation (CAREC) program, for which AsDB acts as Secretariat, AsDB is financing construction of the country’s two main international road corridors, connecting Mongolia to the People’s Republic of China and the Russian Federation. As a result, travel times from Ulaanbaatar (UB) to the PRC border have recently come down from 20 hours to 7 hours. With a view to boosting Mongolian exports, AsDB is also supporting Mongolia to harmonize cross-border transport procedures, under the CAREC program, and developing logistics infrastructure and systems in Zamyn-Uud on the border with the People’s Republic of China. AsDB also plans to support a public transport system for UB, based on bus rapid transit.
Urban Development. AsDB is helping to improve living conditions and greater access to basic services, including water, sanitation, and heating, to poor people in urban areas across the country, including UB, provincial capitals and smaller towns in the mineral-rich Gobi area, where communities are coping with a large population influx in response to new mining operations. AsDB plans to extend basic urban infrastructure and construct socio-economic facilities in peri-urban areas of UB city, home of nearly half of the population, to upgrade existing sub-centers for improved economic, housing, and employment opportunities, and reduced environmental pollution. AsDB recently approved the $320 million Ger Area Development Programme, with $160m financing from AsDB, Euro 50m from the European Investment Bank and the remainder financed by the Government.
Energy. Insufficient and unreliable power and heating are becoming bottlenecks to growth and threaten livelihoods. AsDB aims improve energy efficiency and capacity in UB, through upgrading electrical transmission and distribution networks, by increasing efficiency of existing energy sources, and preparing to finance the country’s first major $1.3 billion public–private partnership to construct a new energy efficient combined heating and power plant in UB with proper emission reduction equipment. AsDB will pilot the application of different renewable energy sources, including solar thermal heating in remote districts.
Education. AsDB has supported the government’s efforts to reform and develop the education system in all subsectors (pre-primary, primary, secondary, tertiary, technical and vocational education and training). To meet pressing labor market demands, AsDB currently supports reform of higher education has recently approved substantial financial support modernize vocational training, as well as promoting PPPs in pre-primary and primary education
Health and Social Protection. AsDB has made major investments to improve primary health services and supports policy reforms and investments in the hospital sector, drug and blood safety and hospitals hygiene. AsDB assisted the government in introducing proxy means testing to target the poor, reformation of several universal benefits, introduction of the food stamp program as the first poverty-targeted benefit in the country, and passage of the amended Social Welfare Law in January 2012 that legalized the reforms. AsDB will continue to support the efficiency and transparency of the delivery of social welfare and insurance services. Another planned area of support is the improvement of access to education, employment and health care for disabled persons, who tend to be left aside from the basic services.
Agriculture, Natural Resources and Rural Development. Recognizing the significant potential of agriculture for employment creation, Mongolia needs to diversify the economy by developing value chains for high-quality, locally made agricultural products. Establishing genuine Mongolian brands, and developing rigorous quality control and standardization of products would help Mongolian companies to penetrate overseas markets. AsDB has been and will continue supporting this potential through the development of agro-processing companies, and establishing brands. Sanitary and phytosanitary measures are essential for Mongolia to boost its trade of agriculture products and AsDB supports the country to upgrade these to international standards. Mongolia faces severe development challenges in terms of sustainable growth, such as, grasslands desertification, water scarcity, and a growing number of climate change-related disasters. AsDB will support the sustainable management of natural resources (i.e., water, land, forests, and peatlands); water security and information management; protected area management; climate change adaptation; institutional strengthening; and rural renewable energy and livelihood improvement. AsDB aims to strengthen natural disaster risk management. Working with private sector banks, AsDB has made over $80m available for the development of micro, small and medium enterprises, especially in agribusiness.
Finance. While almost 90% of registered businesses in Mongolia are SMEs, most of them have limited access to finance and are unable to contribute sufficiently to diversification of the economy, employment creation, and economic growth. The expected outcome of AsDB’s interventions in the financial sector is the increased use of more efficient financial intermediation by private sector enterprises and individuals to support diversification of the economy and employment creation, in particular in the agriculture sector. AsDB will help safeguard financial sector stability, improve access to finance for SMEs through the support of financial infrastructure, and support long-term financing for investments in infrastructure and green development.
Statistical Issues
(As of March 3, 2015)
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision to the Fund is broadly adequate for surveillance, but some shortcomings exist in the estimation of GDP and treatment of missing observations in price indices. The priority areas for improvement are national accounts and price statistics, and also the migration of government finance statistics to a new methodology. | |
| National Accounts: The National Statistics Office (NSO) currently compiles and publishes annual and quarterly GDP by production and expenditure approaches. Estimates are broadly in line with the 1993 SNA and are based on various census/surveys and administrative data sources. Annual GDP data are available for 1990–2013. The constant price estimates use the base year 2005. The NSO has recently improved the quality of national accounts data, but weaknesses remain, including in the estimation of capital formation, imputed rent estimates, estimation of GDP in constant prices, and coverage of the informal sector and small-scale activity (especially in the services sector). The NSO is currently finalizing a supply-use table (SUT) for 2010 at current prices based on the 2008 SNA methodology and has plans for implementing SUT as an integral part of the annual compilation process, in current and constant prices. The SUT represents an important tool for the improvement of national accounts estimates in Mongolia. | |
| Price Statistics: The consumer price index (CPI) was rebased in January 2008 with expenditure-derived weights from the 2005 Household Income and Expenditure Survey. The NSO has published a national CPI for Ulaanbaatar and 21 aimags (provinces) since January 2008, and a housing price index since October 2008. CPI compilation can further be improved by expanding the sample to include more varieties and financial services and appropriate treatment of missing observations. The NSO also publishes a producer price index (PPI). The major shortcoming with the currently compiled PPI for industry continues to be the lack of imputation for missing prices—both temporarily and permanently missing prices. | |
| Government Finance Statistics: Currently, the concepts, classifications, and definitions used to compile sub-annual and annual fiscal statistics for the consolidated general government operations series used in APD generally follow the guidelines of the GFSM 1986. The authorities have indicated an intention to adopt a migration path to the GFSM 2001 methodology. STA assists the authorities compile and disseminate monthly and annual (cash-based) general government series in the GFSM 2001-based Statement of Sources and Uses of cash (Revenue, Expenditure, Transaction in Assets and Liabilities). A 2015 GFS TA mission will seek to compile a complete an annual (and quarterly) balance sheet and integrated presentation of stock and flows for the consolidated general government sector using the accrual (IPSAS-based) accounts maintained by the Ministry of Finance. The mission will also seek to encourage the reporting of public sector debt statistics (PSDS), as these are not reported systematically to the World Bank for dissemination on the PSDS Website. | |
| Monetary and Financial Statistics: BOM’s monetary and financial statistics conform to the concepts and definitions of the Monetary and Financial Statistics Manual (MFSM) methodology as the authorities implemented recommendations of the latest monetary and financial statistics (MFS) missions. In particular, the monetary data were improved by the proper classification of repurchase agreements, accrued interest, and financial derivatives. The coverage of monetary statistics was expanded beginning in February 2010 to include data of Savings and Credit Cooperatives (SCCs) that collect deposits; and since May 2010 data for some other financial corporations (OFIs) have been disseminated in the BOM’s Monthly Statistical Bulletin. The September 2009 mission provided recommendations to reconcile the BOM and the Ministry of Finance data on government financing, and finalized the standardized report forms for the data of the BOM and other depository corporations for publication in International Financial Statistics beginning in November 2009. The July/August 2011 mission discussed the quality of data of the nonbank financial institutions (NBFIs), insurance companies, and securities companies that are reported to the Financial Regulatory Commission (FRC) and recommended their use in the compilation of monetary statistics. However, due to insufficient coordination among various agencies, this recommendation has not been implemented. | |
| Financial sector surveillance: With regard to financial soundness indicators (FSIs), Mongolia currently does not report data to the Fund for dissemination on the Fund website. | |
| External Sector Statistics: For compilation of external sector statistics (ESS), the Bank of Mongolia (BOM) follows the statistical framework of the fifth edition of the Balance of Payment Manual (BPM5) and expects to begin compiling and reporting ESS using the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) during the first half of 2015. The coverage of the balance of payments statistics has been broadened by extending the International Transaction Reporting System (ITRS) to nonbank financial institutions and by increasing the number of direct reporting private enterprises. Since May 2014, BOM has produced 2012-annual international investment position data for submission to STA. Priorities for improvement are to (1) submit quarterly external debt statistics to the World Bank’s Quarterly External Debt Statistics (QEDS) database in collaboration with the Ministry of Finance; (2) release the first quarter data for 2014 using the BPM6 statistical framework; and (3) assess the State Registry Office’s database on all enterprises registered in Mongolia to determine whether all relevant enterprises with direct investment are included in the BOM’s ESS surveys. | |
| II. Data Standards and Quality | |
| Mongolia participates in the General Data Dissemination System (GDDS). | A data ROSC mission visited Mongolia in September 2007 to update the May 2000 assessment of the macroeconomic statistics. The report was published in April 2008. |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision to the Fund is broadly adequate for surveillance, but some shortcomings exist in the estimation of GDP and treatment of missing observations in price indices. The priority areas for improvement are national accounts and price statistics, and also the migration of government finance statistics to a new methodology. | |
| National Accounts: The National Statistics Office (NSO) currently compiles and publishes annual and quarterly GDP by production and expenditure approaches. Estimates are broadly in line with the 1993 SNA and are based on various census/surveys and administrative data sources. Annual GDP data are available for 1990–2013. The constant price estimates use the base year 2005. The NSO has recently improved the quality of national accounts data, but weaknesses remain, including in the estimation of capital formation, imputed rent estimates, estimation of GDP in constant prices, and coverage of the informal sector and small-scale activity (especially in the services sector). The NSO is currently finalizing a supply-use table (SUT) for 2010 at current prices based on the 2008 SNA methodology and has plans for implementing SUT as an integral part of the annual compilation process, in current and constant prices. The SUT represents an important tool for the improvement of national accounts estimates in Mongolia. | |
| Price Statistics: The consumer price index (CPI) was rebased in January 2008 with expenditure-derived weights from the 2005 Household Income and Expenditure Survey. The NSO has published a national CPI for Ulaanbaatar and 21 aimags (provinces) since January 2008, and a housing price index since October 2008. CPI compilation can further be improved by expanding the sample to include more varieties and financial services and appropriate treatment of missing observations. The NSO also publishes a producer price index (PPI). The major shortcoming with the currently compiled PPI for industry continues to be the lack of imputation for missing prices—both temporarily and permanently missing prices. | |
| Government Finance Statistics: Currently, the concepts, classifications, and definitions used to compile sub-annual and annual fiscal statistics for the consolidated general government operations series used in APD generally follow the guidelines of the GFSM 1986. The authorities have indicated an intention to adopt a migration path to the GFSM 2001 methodology. STA assists the authorities compile and disseminate monthly and annual (cash-based) general government series in the GFSM 2001-based Statement of Sources and Uses of cash (Revenue, Expenditure, Transaction in Assets and Liabilities). A 2015 GFS TA mission will seek to compile a complete an annual (and quarterly) balance sheet and integrated presentation of stock and flows for the consolidated general government sector using the accrual (IPSAS-based) accounts maintained by the Ministry of Finance. The mission will also seek to encourage the reporting of public sector debt statistics (PSDS), as these are not reported systematically to the World Bank for dissemination on the PSDS Website. | |
| Monetary and Financial Statistics: BOM’s monetary and financial statistics conform to the concepts and definitions of the Monetary and Financial Statistics Manual (MFSM) methodology as the authorities implemented recommendations of the latest monetary and financial statistics (MFS) missions. In particular, the monetary data were improved by the proper classification of repurchase agreements, accrued interest, and financial derivatives. The coverage of monetary statistics was expanded beginning in February 2010 to include data of Savings and Credit Cooperatives (SCCs) that collect deposits; and since May 2010 data for some other financial corporations (OFIs) have been disseminated in the BOM’s Monthly Statistical Bulletin. The September 2009 mission provided recommendations to reconcile the BOM and the Ministry of Finance data on government financing, and finalized the standardized report forms for the data of the BOM and other depository corporations for publication in International Financial Statistics beginning in November 2009. The July/August 2011 mission discussed the quality of data of the nonbank financial institutions (NBFIs), insurance companies, and securities companies that are reported to the Financial Regulatory Commission (FRC) and recommended their use in the compilation of monetary statistics. However, due to insufficient coordination among various agencies, this recommendation has not been implemented. | |
| Financial sector surveillance: With regard to financial soundness indicators (FSIs), Mongolia currently does not report data to the Fund for dissemination on the Fund website. | |
| External Sector Statistics: For compilation of external sector statistics (ESS), the Bank of Mongolia (BOM) follows the statistical framework of the fifth edition of the Balance of Payment Manual (BPM5) and expects to begin compiling and reporting ESS using the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) during the first half of 2015. The coverage of the balance of payments statistics has been broadened by extending the International Transaction Reporting System (ITRS) to nonbank financial institutions and by increasing the number of direct reporting private enterprises. Since May 2014, BOM has produced 2012-annual international investment position data for submission to STA. Priorities for improvement are to (1) submit quarterly external debt statistics to the World Bank’s Quarterly External Debt Statistics (QEDS) database in collaboration with the Ministry of Finance; (2) release the first quarter data for 2014 using the BPM6 statistical framework; and (3) assess the State Registry Office’s database on all enterprises registered in Mongolia to determine whether all relevant enterprises with direct investment are included in the BOM’s ESS surveys. | |
| II. Data Standards and Quality | |
| Mongolia participates in the General Data Dissemination System (GDDS). | A data ROSC mission visited Mongolia in September 2007 to update the May 2000 assessment of the macroeconomic statistics. The report was published in April 2008. |
Common Indicators Required for Surveillance
(As of February 25, 2014)
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, and rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I), Not Available (NA).
Reflects the assessment provided in the data ROSC or the Substantive Update (published in April 2008, and based on the findings of the mission that took place during September 1–28) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 7, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Common Indicators Required for Surveillance
(As of February 25, 2014)
| Date of Latest Observation | Date Received | Frequency of Data6 | Frequency of Reporting6 | Frequency of Publication6 | Memo Items:: | ||
|---|---|---|---|---|---|---|---|
| Data Quality-Methodological soundness7 | Data Quality – Accuracy and Reliability8 | ||||||
| Exchange rates | 02/25/15 | 02/25/15 | D | D | D | ||
| International reserve assets and reserve liabilities of the Monetary Authorities1 | 02/25/15 | 02/25/15 | D | D | M | ||
| Reserve/base money | 01/31/15 | 02/23/15 | M | M | M | O, LO, LO, LO | O, O, O, O, LNO |
| Broad money | 01/31/15 | 02/23/15 | M | M | M | ||
| Central bank balance sheet | 01/31/15 | 02/23/15 | M | M | M | ||
| Consolidated balance sheet of the banking system | 01/31/15 | 02/23/15 | M | M | M | ||
| Interest rates2 | 12/31/14 | 01/16/15 | M | M | M | ||
| Consumer price index | 01/31/15 | 02/18/15 | M | M | M | O, LO, O, O | LO, LO, LO, O, O |
| Revenue, expenditure, balance and composition of financing3 – general government4 | 12/31/14 | 01/16/15 | M | M | M | LO, LNO, LO, O | LO, O, LO, LO, LNO |
| Revenue, expenditure, balance and composition of financing3 – central government | 12/31/14 | 01/16/15 | M | M | M | ||
| Stocks of central government and central government-guaranteed debt5 | 12/31/14 | 02/08/15 | A | A | A | ||
| External current account balance | 12/31/14 | 02/03/15 | M | M | M | O, O, O, LO | LO, O, LO, LO, LO |
| Exports and imports of goods | 12/31/14 | 02/03/15 | M | M | M | ||
| GDP/GNI | 2014Q4 | 02/2015 | Q | Q | Q | O, LNO, O, LO | O, LO, LO, LO, LNO |
| Gross external debt | 2014Q3 | 01/16/15 | Q | Q | Q | ||
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, and rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I), Not Available (NA).
Reflects the assessment provided in the data ROSC or the Substantive Update (published in April 2008, and based on the findings of the mission that took place during September 1–28) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 7, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Common Indicators Required for Surveillance
(As of February 25, 2014)
| Date of Latest Observation | Date Received | Frequency of Data6 | Frequency of Reporting6 | Frequency of Publication6 | Memo Items:: | ||
|---|---|---|---|---|---|---|---|
| Data Quality-Methodological soundness7 | Data Quality – Accuracy and Reliability8 | ||||||
| Exchange rates | 02/25/15 | 02/25/15 | D | D | D | ||
| International reserve assets and reserve liabilities of the Monetary Authorities1 | 02/25/15 | 02/25/15 | D | D | M | ||
| Reserve/base money | 01/31/15 | 02/23/15 | M | M | M | O, LO, LO, LO | O, O, O, O, LNO |
| Broad money | 01/31/15 | 02/23/15 | M | M | M | ||
| Central bank balance sheet | 01/31/15 | 02/23/15 | M | M | M | ||
| Consolidated balance sheet of the banking system | 01/31/15 | 02/23/15 | M | M | M | ||
| Interest rates2 | 12/31/14 | 01/16/15 | M | M | M | ||
| Consumer price index | 01/31/15 | 02/18/15 | M | M | M | O, LO, O, O | LO, LO, LO, O, O |
| Revenue, expenditure, balance and composition of financing3 – general government4 | 12/31/14 | 01/16/15 | M | M | M | LO, LNO, LO, O | LO, O, LO, LO, LNO |
| Revenue, expenditure, balance and composition of financing3 – central government | 12/31/14 | 01/16/15 | M | M | M | ||
| Stocks of central government and central government-guaranteed debt5 | 12/31/14 | 02/08/15 | A | A | A | ||
| External current account balance | 12/31/14 | 02/03/15 | M | M | M | O, O, O, LO | LO, O, LO, LO, LO |
| Exports and imports of goods | 12/31/14 | 02/03/15 | M | M | M | ||
| GDP/GNI | 2014Q4 | 02/2015 | Q | Q | Q | O, LNO, O, LO | O, LO, LO, LO, LNO |
| Gross external debt | 2014Q3 | 01/16/15 | Q | Q | Q | ||
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, and rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I), Not Available (NA).
Reflects the assessment provided in the data ROSC or the Substantive Update (published in April 2008, and based on the findings of the mission that took place during September 1–28) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 7, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Millennium Development Goals
| 1995 | 2000 | 2010 | 2012/13 | |
|---|---|---|---|---|
| Goal 1: Eradicate extreme poverty and hunger | ||||
| Employment to population ratio, 15+, total (%) | 56 | 57 | 57 | 60 |
| Employment to population ratio, ages 15–24, total (%) | 38 | 38 | 30 | 33 |
| GDP per person employed (constant 1990 PPP $) | .. | .. | .. | .. |
| Income share held by lowest 20% | 7 | 7 | .. | .. |
| Malnutrition prevalence, weight for age (% of children under 5) | 8 | 12 | 5 | .. |
| Poverty gap at $1.25 a day (PPP) (%) | .. | .. | .. | .. |
| Poverty headcount ratio at $1.25 a day (PPP) (% of population) | .. | .. | .. | .. |
| Vulnerable employment, total (% of total employment) | .. | 57 | 56 | .. |
| Goal 2: Achieve universal primary education | ||||
| Literacy rate, youth female (% of females ages 15–24) | .. | 98 | 99 | .. |
| Literacy rate, youth male (% of males ages 15–24) | .. | 97 | 98 | .. |
| Persistence to last grade of primary, total (% of cohort) | 68 | 89 | 93 | .. |
| Primary completion rate, total (% of relevant age group) | 75 | 87 | 114 | 130 |
| Adjusted net enrollment rate, primary (% of primary school age children) | 81 | 93 | 99 | 98 |
| Goal 3: Promote gender equality and empower women | ||||
| Proportion of seats held by women in national parliaments (%) | 8 | 11 | 4 | 15 |
| Ratio of female to male primary enrollment (%) | 103 | 101 | 98 | 97 |
| Ratio of female to male secondary enrollment (%) | 133 | 124 | 107 | 103 |
| Ratio of female to male tertiary enrollment (%) | 227 | 179 | 154 | 145 |
| Share of women employed in the nonagricultural sector (% of total nonagricultural employment) | 46 | 49 | 52 | 50 |
| Goal 4: Reduce child mortality | ||||
| Immunization, measles (% of children ages 12–23 months) | 85 | 92 | 97 | 97 |
| Mortality rate, infant (per 1,000 live births) | 63 | 49 | 29 | 26 |
| Mortality rate, under-5 (per 1,000 live births) | 85 | 65 | 36 | 32 |
| Goal 5: Improve maternal health | ||||
| Adolescent fertility rate (births per 1,000 women ages 15–19) | 34 | 26 | 19 | 19 |
| Births attended by skilled health staff (% of total) | .. | 97 | 99 | .. |
| Contraceptive prevalence (% of women ages 15–49) | 57 | 67 | 55 | .. |
| Maternal mortality ratio (modeled estimate, per 100,000 live births) | 120 | 120 | 74 | 68 |
| Pregnant women receiving prenatal care (%) | .. | 97 | 99 | .. |
| Unmet need for contraception (% of married women ages 15–49) | .. | .. | 14 | .. |
| Goal 6: Combat HIV/AIDS, malaria, and other diseases | ||||
| Children with fever receiving antimalarial drugs (% of children under age 5 with fever) | .. | .. | .. | .. |
| Condom use, population ages 15–24, female (% of females ages 15–24) | .. | .. | .. | .. |
| Condom use, population ages 15–24, male (% of males ages 15–24) | .. | .. | .. | .. |
| Incidence of tuberculosis (per 100,000 people) | 314 | 253 | 214 | 181 |
| Prevalence of HIV, female (% ages 15–24) | 0.1 | 0.1 | 0.1 | 0.1 |
| Prevalence of HIV, male (% ages 15–24) | 0.1 | 0.1 | 0.1 | 0.1 |
| Prevalence of HIV, total (% of population ages 15–49) | 0.1 | 0.1 | 0.1 | 0.1 |
| Tuberculosis case detection rate (%, all forms) | 39 | 51 | 77 | 84 |
| Goal 7: Ensure environmental sustainability | ||||
| CO2 emissions (kg per PPP $ of GDP) | 1.3 | 1.0 | 0.7 | .. |
| CO2 emissions (metric tons per capita) | 3.4 | 3.1 | 4.2 | .. |
| Forest area (% of land area) | 7.8 | 7.5 | 7.0 | 6.9 |
| Improved sanitation facilities (% of population with access) | 47 | 49 | 55 | 56 |
| Improved water source (% of population with access) | 63 | 68 | 82 | 85 |
| Marine protected areas (% of territorial waters) | .. | .. | .. | .. |
| Net ODA received per capita (current US$) | 91 | 91 | 112 | 160 |
| Goal 8: Develop a global partnership for development | ||||
| Debt service (PPG and IMF only, % of exports of goods, services and primary income) | 10 | 7 | 4 | 3 |
| Internet users (per 100 people) | 0 | 1 | 10 | 18 |
| Mobile cellular subscriptions (per 100 people) | 0 | 6 | 93 | 124 |
| Telephone lines (per 100 people) | 3 | 5 | 7 | 6 |
| Fertility rate, total (births per woman) | 3 | 2 | 2 | 2 |
| Other | ||||
| GNI per capita, Atlas method (current US$) | 460 | 470 | 1900 | 3770 |
| GNI, Atlas method (current US$) (billions) | 1.1 | 1.1 | 5.2 | 10.7 |
| Gross capital formation (% of GDP) | 26.8 | 29.0 | 40.8 | 61.4 |
| Life expectancy at birth, total (years) | 61.2 | 62.9 | 66.9 | 67.3 |
| Literacy rate, adult total (% of people ages 15 and above) | .. | 97.8 | 98.3 | .. |
| Population, total (millions) | 2.29 | 2.39 | 2.71 | 2.84 |
| Trade (% of GDP) | 82.1 | 121.9 | 117.1 | 112.2 |
| 1995 | 2000 | 2010 | 2012/13 | |
|---|---|---|---|---|
| Goal 1: Eradicate extreme poverty and hunger | ||||
| Employment to population ratio, 15+, total (%) | 56 | 57 | 57 | 60 |
| Employment to population ratio, ages 15–24, total (%) | 38 | 38 | 30 | 33 |
| GDP per person employed (constant 1990 PPP $) | .. | .. | .. | .. |
| Income share held by lowest 20% | 7 | 7 | .. | .. |
| Malnutrition prevalence, weight for age (% of children under 5) | 8 | 12 | 5 | .. |
| Poverty gap at $1.25 a day (PPP) (%) | .. | .. | .. | .. |
| Poverty headcount ratio at $1.25 a day (PPP) (% of population) | .. | .. | .. | .. |
| Vulnerable employment, total (% of total employment) | .. | 57 | 56 | .. |
| Goal 2: Achieve universal primary education | ||||
| Literacy rate, youth female (% of females ages 15–24) | .. | 98 | 99 | .. |
| Literacy rate, youth male (% of males ages 15–24) | .. | 97 | 98 | .. |
| Persistence to last grade of primary, total (% of cohort) | 68 | 89 | 93 | .. |
| Primary completion rate, total (% of relevant age group) | 75 | 87 | 114 | 130 |
| Adjusted net enrollment rate, primary (% of primary school age children) | 81 | 93 | 99 | 98 |
| Goal 3: Promote gender equality and empower women | ||||
| Proportion of seats held by women in national parliaments (%) | 8 | 11 | 4 | 15 |
| Ratio of female to male primary enrollment (%) | 103 | 101 | 98 | 97 |
| Ratio of female to male secondary enrollment (%) | 133 | 124 | 107 | 103 |
| Ratio of female to male tertiary enrollment (%) | 227 | 179 | 154 | 145 |
| Share of women employed in the nonagricultural sector (% of total nonagricultural employment) | 46 | 49 | 52 | 50 |
| Goal 4: Reduce child mortality | ||||
| Immunization, measles (% of children ages 12–23 months) | 85 | 92 | 97 | 97 |
| Mortality rate, infant (per 1,000 live births) | 63 | 49 | 29 | 26 |
| Mortality rate, under-5 (per 1,000 live births) | 85 | 65 | 36 | 32 |
| Goal 5: Improve maternal health | ||||
| Adolescent fertility rate (births per 1,000 women ages 15–19) | 34 | 26 | 19 | 19 |
| Births attended by skilled health staff (% of total) | .. | 97 | 99 | .. |
| Contraceptive prevalence (% of women ages 15–49) | 57 | 67 | 55 | .. |
| Maternal mortality ratio (modeled estimate, per 100,000 live births) | 120 | 120 | 74 | 68 |
| Pregnant women receiving prenatal care (%) | .. | 97 | 99 | .. |
| Unmet need for contraception (% of married women ages 15–49) | .. | .. | 14 | .. |
| Goal 6: Combat HIV/AIDS, malaria, and other diseases | ||||
| Children with fever receiving antimalarial drugs (% of children under age 5 with fever) | .. | .. | .. | .. |
| Condom use, population ages 15–24, female (% of females ages 15–24) | .. | .. | .. | .. |
| Condom use, population ages 15–24, male (% of males ages 15–24) | .. | .. | .. | .. |
| Incidence of tuberculosis (per 100,000 people) | 314 | 253 | 214 | 181 |
| Prevalence of HIV, female (% ages 15–24) | 0.1 | 0.1 | 0.1 | 0.1 |
| Prevalence of HIV, male (% ages 15–24) | 0.1 | 0.1 | 0.1 | 0.1 |
| Prevalence of HIV, total (% of population ages 15–49) | 0.1 | 0.1 | 0.1 | 0.1 |
| Tuberculosis case detection rate (%, all forms) | 39 | 51 | 77 | 84 |
| Goal 7: Ensure environmental sustainability | ||||
| CO2 emissions (kg per PPP $ of GDP) | 1.3 | 1.0 | 0.7 | .. |
| CO2 emissions (metric tons per capita) | 3.4 | 3.1 | 4.2 | .. |
| Forest area (% of land area) | 7.8 | 7.5 | 7.0 | 6.9 |
| Improved sanitation facilities (% of population with access) | 47 | 49 | 55 | 56 |
| Improved water source (% of population with access) | 63 | 68 | 82 | 85 |
| Marine protected areas (% of territorial waters) | .. | .. | .. | .. |
| Net ODA received per capita (current US$) | 91 | 91 | 112 | 160 |
| Goal 8: Develop a global partnership for development | ||||
| Debt service (PPG and IMF only, % of exports of goods, services and primary income) | 10 | 7 | 4 | 3 |
| Internet users (per 100 people) | 0 | 1 | 10 | 18 |
| Mobile cellular subscriptions (per 100 people) | 0 | 6 | 93 | 124 |
| Telephone lines (per 100 people) | 3 | 5 | 7 | 6 |
| Fertility rate, total (births per woman) | 3 | 2 | 2 | 2 |
| Other | ||||
| GNI per capita, Atlas method (current US$) | 460 | 470 | 1900 | 3770 |
| GNI, Atlas method (current US$) (billions) | 1.1 | 1.1 | 5.2 | 10.7 |
| Gross capital formation (% of GDP) | 26.8 | 29.0 | 40.8 | 61.4 |
| Life expectancy at birth, total (years) | 61.2 | 62.9 | 66.9 | 67.3 |
| Literacy rate, adult total (% of people ages 15 and above) | .. | 97.8 | 98.3 | .. |
| Population, total (millions) | 2.29 | 2.39 | 2.71 | 2.84 |
| Trade (% of GDP) | 82.1 | 121.9 | 117.1 | 112.2 |
Main Data Websites
National Statistics Office (www.nso.mn)
National Accounts
Consumer Price Inflation
Agricultural and Industrial Production
Petroleum Imports
Electricity Production and Consumption
Coal Production
Retail Prices
Employment
Exports and Imports
Bank of Mongolia (www.mongolbank.mn)
Monetary Survey
Consolidated Balance Sheet of Commercial Banks
Distribution of Bank Credit to the Nongovernment Sector
Net Credit to Government
Interest Rates
Balance of Payments
Services and Income Accounts
Official Reserves of the Bank of Mongolia
Selected Indicators of Commercial Bank Foreign Exchange Operations
Nominal and Real Exchange Rates
Securities Market Data
Government Budget Accounts
Ministry of Finance (www.mof.gov.mn)
Government Budgetary Operations
National Development and Innovation Committee (www.ndic.gov.mn)
Long- and medium-term development strategy
Economic and social policies
Investment policy coordination
Development Bank of Mongolia
Financial Regulatory Commission (www.frc.mn)
FRC decisions
Total assets of regulated entities (insurance companies, securities and broker firms, non-bank financial institutions, savings and credit unions)
Consolidated income statements of regulated entities (insurance companies, securities and broker firms, non-bank financial institutions, savings and credit unions)