Monetary policy

Main goal of the activities of the Bank of Mongolia lies in the stability of the national currency, the Togrog. This goal translates into containing inflation within certain limits. The main monetary instrument used towards this goal is manipulation of the money supply. The Bank uses Central Bank bills and required reserves as instruments of monetary policy. In respect to the monetary policy guidelines for 2006, the Bank of Mongolia aims to contain inflation within 7 percent for the year, provided that exceptional hikes in the price of petroleum does not occur in the economy.

Highlights...

Inflation The main purpose of the activities of the Bank of Mongolia, containing inflation within certain limits, represents low inflation, stability in prices and exchange rate. Optimal money supply, required reserves and the rates on the Central Bank Bills are of importance to the Central Bank in keeping the inflation low. Presented in this section are research works on inflation. More