Mongolia Growth Group August 2014 Economic...
Transcript of Mongolia Growth Group August 2014 Economic...
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August News HighlightsXI JINPING VISITS MONGOLIA TO UPGRADE BILATERAL TIES AND SIGN CRUCIAL AGREEMENTS
Chinese President Xi Jingping arrived in Mongolia for a two day visit August 21-22. It is the first visit in 11 years by a Chinese head of state to Mongolia, and also the second time for Xi to make a one-country foreign trip since he took office. Heads of state of the two countries outlined in Xi’s visit the future direction of practice cooperation in mineral resource exploration, infrastructure construction and finance, and prioritized collaboration in road and railway connectivity and major proj-ects, so as to elevate bilateral trade volume to 10 billion U.S. dollars by 2020. (Source: Xinhua)
MONGOLIA AND CHINA CENTRAL BANKS RE-NEW CURRENCY SWAP AGREEMENT
On August 21 2014, Zoljargal Naidansuren, Governor of the Bank of Mongolia (BoM) and Zhou Xiaochuan, Governor of the People’s Bank of China (PBoC) signed a new currency swap agreement for a term of another three years, with its size expanded from RMB10 billion to RMB15 billion. The new agreement will be effective for three years, and can be extended by mutual consent and superseded the RMB10 billion currency swap agreement signed on 06 May 2011 and extended on 14 May 2014. The expansion of the currency swap agreement between the BoM and the PBoC are crucial in helping to provide liquidity, when necessary, to maintain the stability of the financial market. The new agreement will facilitate the further development of trade and investment between two countries. (Source: Bank of Mongolia)
TENDER TO RESUME TO SELECT TAVAN TOLGOI INVESTOR
The cabinet meeting on Thursday issued a resolution on taking some measures for the Tavan Tolgoi deposit, considering as necessity to resume a bid for selecting an investor for the deposit. In accordance with the resolution, a working group will be set up by Ch.Saikhabileg, a head of the Cabinet Secretariat for Government, with responsibilities such as running and concluding the tender by November 1 of 2014 and establishing a contract with a selected legal subject in December 15 of 2014. (Source: Montsame)
NEW CONCRETE FACTORY WILL MEET 30% OF DOMESTIC DEMAND
On August 20th the Prime Minister N.Altankhuyag addressed an opening ceremony of a new factory of concrete. Producing two types of concretes--aerocrete and light concrete--the factory has been erected by the “Dorniin Tsas” LLC within the government’s reforms “Let’s produce in Mongolia”. The factory is not harmful to environment, is smoke-free, does not create waste, is equipped with the latest technologies, re-uses water, and employes 60 people, said executive director of the company. (Source: Montsame)
THE DEPARTMENT OF TAX LAUNCHES E-PAYMENT SYSTEM
With support from the USAID-funded Business Plus Initiative Project (BPI), the General Department of Taxation (GDT) launched its new E-Payment System on August 8th. The GDT upgraded and launched its new e-tax filing system in early 2014, which now reaches more than 70 percent of taxpayers. In order to facilitate payment of taxes, USAID supported the GDT in developing an E-payment System. The new E-payment options will make paying taxes easier, cheaper, safer and faster by connecting GDT and banks electronically with just a few clicks, eliminating physical visits to banks and the tax office. The introduction of electronic filing and e-payment is expected to significantly reduce the number of payments and the time to comply with tax obligations as measured by the World Bank Doing Business Report. (Source: Montsame)
CONSTRUCTION OF NATIONAL LIBRARY NEW BUILDING BEGINS
A ceremony took place Thursday to lay the foundation stone of a new national library. Pursuant to a decree of the President, a land of 0.3 hectares given to the new building of National Library in 2008 in the Sukhbaatar District, and the construction works started six years after. The new 11 story building of the National Library will have the latest science and technological achievements in terms of service, database and will offer comfortable conditions for the readers. In the 1-3rd stories, it will have multi-selection reading rooms, and cabinets for the disabled. The construction of new National Library is expected to be completed by 2016. (Source: Montsame)
Mongolia Growth Group August 2014 Economic Update
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INTEREST RATES 2014/AugPolicy rate 12.0%Overnight repo 14.0%Overnight deposit 10.0%Repo 12.5%
1 USD 1811.0₮ 1 EUR 2385.0₮ 1 CNY 294.7₮ 1 GBP 3006.2₮ 1 RUB 49.1₮ 1 CAD 1669.0₮*Mongol Bank
MONGOLIAN TUGRIK VS US DOLLAR
MONGOLIAN STOCK EXCHANGE CHART
CONSUMER PRICE INDICIES: 2014/Aug CPI March Month YTD YOY
Ulaanbaatar 0.7 7.4 13.6
Mongolia 0.4 7.7 13.7
MONETARY INDICATORS: 2014/Aug bln ₮ YOY %Reserve money 2814.8 8.2M2 Money 10135.9 20.5
mln USD Aug 2014 Aug 2013 Change %
Exports 635.8 349.6 81.9%
Imports 451.2 571.9 (21.1%)
Net exports 184.6 (222.3) --Source: National Statistics Office
EXTERNAL SECTOR
Aug 31 July 31 MONTHLY CHANGE MSE TOP 20 INDEX 15,730.54 15,871.73 (0.89%)Market Cap (USD) 897,600,000 857,000,000 4.70%
MSE TOP 20 INDEX
OFFICIAL EXCHANGE RATES*: 08/31/2014
August 2014 - Economic Update
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