Central Bank of Mongolia identifies cooperation opportunities on correspondent banking, repo and foreign exchange risk management

The Central Bank of Mongolia published an update on Deputy Governor G. Enkhtaivan's participation in the European Bank for Reconstruction and Development annual meeting in Riga, saying bilateral meetings held on the sidelines identified several areas for expanded international cooperation. The main outcomes were potential work to broaden correspondent banking relationships with foreign financial institutions and to deepen cooperation on repo transactions, derivative netting, foreign exchange hedging and foreign exchange swaps. During the meetings, the Mongolian delegation briefed counterparts on Mongolia's macroeconomic outlook, recent banking and financial sector developments, and the central bank's policy and reform agenda. The specific follow-up areas cited were repo transaction cooperation with ICBC Standard Bank, detailed discussions with Frontclear on derivative netting arrangements and foreign exchange risk hedging solutions, and cooperation with the Dutch-based TCX Fund on foreign exchange swap transactions. The central bank said these discussions laid the groundwork for strengthening its financial market operations and risk management capabilities.