Monetary Policy Department

Director of Monetary Policy Department: Mr. Bayardavaa B.

Monetary Policy Department /MPD/ implements the Government's monetary policy guidelines and functions to maintain domestic price stability.

Following are the key aspects of MPD’s functions:

  • Prepare and compile the monetary policy guideline for upcoming year and ensure its implementation;
  • Formulate the foreign exchange policy strategy;
  • Prepare the monetary policy proposal based on the economic outlook, key indicators’ forecast (inflation, economic growth, money supply, etc.) and present to the management of the Bank of Mongolia as well as the Monetary Policy Committee;
  • Improve models used for economic research, analysis, forecasting and develop new models;
  • Explain policy measures to the public in order to increase the effectiveness of monetary policy;
  • Prepare Bank of Mongolia’s view or response on fiscal, development and other policy documents by Government and its’ institutions;
  • Conduct analysis and prepare a proposal on the implementation and operational framework of monetary policy;
  • Develop a macro-prudential policy framework;
  • Conduct research and analysis to identify and reduce systemic risks in the financial system, develop policy proposals;
  • Explain macroprudential policy decisions and its reasons to the general public;
  • Prepare and publish financial stability report;
  • Act as a Secretariat of the Financial Stability Council and provide operational services;
  • Coordinate the operations between Financial Stability Council member organizations;
  • Prepare credit rating analysis and recommendations;
  • Analyze inflation performance and produce the near-term outlook on inflation;
  • Conduct analysis of the real sector (both sectoral and demand side);
  • Undertake the assessments and analysis of the external sector (balance of payments projections, analysis on demand, price of export and import products, conduct external demand assessment);
  • Conduct research and analysis on the banking sector, financial sector, and money markets;
  • Conduct research and analysis of factors affecting the exchange rate;
  • Perform quarterly nowcasts, near-term forecasts of key economic indicators