In an interview, the Governor of the Central Bank of Mongolia outlined the central bank’s current priorities, including lifting foreign exchange reserves from about USD 5.2bn (as of June 2025) to USD 5.5bn, improving monetization of revenues from state-owned mining enterprises, and continuing banking-sector reforms aimed at more diversified ownership and stronger corporate governance. On mining-related measures, the central bank linked reserve accumulation to initiatives such as the government’s Gold-3 programme, building on prior gold purchase programmes securing around 20 tonnes per year. Work on responsible supply chains includes collaboration with banks, regulators and international partners on environmental, social and governance standards, the establishment of regional assay laboratories in artisanal and small-scale gold mining zones to support pricing aligned with London Bullion Market Association benchmarks, and participation in the World Gold Council’s London Principles alongside partnerships with the Swiss Better Gold Association and Argor-Heraeus SA. On banking reform, the governor highlighted 2021 legislative amendments introducing a 20% ownership cap per shareholder and joint-stock company requirements, with the compliance deadline extended to 2026, as well as efforts to attract foreign investment through the 2023 Law on Specialized Investment Banking and alignment with the Basel Framework Pillar 2. Looking ahead, the central bank expects inflation to return to target by early 2026 and forecast economic growth of around 6% in 2025, while maintaining a cautious but adaptive policy stance and managing credit growth and external risks. Priorities also include improving cross-border payments and international financial infrastructure, including the re-establishment and expansion of correspondent banking relationships, and advancing sustainable and green finance regulation, climate risk assessment and stress testing, credit information infrastructure, consumer protection and financial literacy.
Central Bank of Mongolia 2025-11-05
Central Bank of Mongolia outlines plan to lift reserves to USD 5.5bn and complete bank ownership reforms by 2026
The Governor of the Central Bank of Mongolia aims to boost foreign exchange reserves to USD 5.5bn, enhance revenue from state-owned mining, and reform banking for diversified ownership and governance. Initiatives include the Gold-3 programme, supply chain collaboration, and banking reforms with a 20% ownership cap and foreign investment attraction. Inflation is expected to hit target by early 2026, with 2025 economic growth forecast at 6%, focusing on cross-border payments, sustainable finance, and financial infrastructure improvements.