A-
A
A+

The Draft of “The State’s Monetary Policy Guidelines for 2026” Submitted to the State Great Khural (The Parliament)

2025-09-30 18:00 | News

On September 30, 2025, B. Lkhagvasuren, the Governor of the Bank of Mongolia, submitted the draft of “The State’s Monetary Policy Guidelines for 2026” to D. Amarbayasgalan, the Speaker of the Parliament, .

Within the framework of monetary and macroprudential policies to be implemented by the Bank of Mongolia next year:

  • Monetary policy will be implemented based on market principles, with the goal of stabilizing inflation around a medium-term target of 5 percent within a +/- 2 percentage point range. The current inflation target of 6 percent will be reduced to 5 percent starting from 2027.
  • Macroprudential policy will be conducted in coordination with monetary policy, taking into account macro-financial linkages and focusing on assessing and managing potential risks to the financial system.
  • The exchange rate of the Mongolian tugrik against foreign currencies will continue to be determined under a flexible regime consistent with underlying macroeconomic fundamentals. The Bank of Mongolia will strengthen public communication to ensure that its policies and decisions are well understood and to help guide public expectations

As part of efforts to ensure the stability of the banking sector, initiatives will continue to strengthen systemic resilience and align supervisory and inspection practices with international standards. In addtion, the national Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) policy will be updated based on self-assessment results and in line with the recommendations and standards of the Financial Action Task Force (FATF). Measures aimed at improving financial and economic literacy among the public will also be further advanced.

To strengthen the financial sector’s infrastructure and institutions, regulatory improvements to the payment system will be pursued, alongside efforts to support the development of innovative products and services. Research will also be initiated to assess the feasibility of using stablecoins as a means of payment.

The draft of the State Monetary Policy Guidelines for 2026 also includes medium-term policy measures aimed at continuing legal reforms in the banking sector, enhancing access to business credit, and broadening the range and availability of loan products.