The government has approved the basic guidelines for monetary policy of 2024
At the general session of the State Grand Khural (Parliament) on 23.11.2023, the final discussion of the draft of the main direction of the government's monetary policy in 2024 was held and approved. The policy is planned to work with the following objectives.
In the framework of monetary and macro-prudential policy, the monetary policy aimed at stabilizing the inflation measured by the consumer price index in the medium-term +/-2 percent interval at around 6 percent will be implemented based on market principles. Inflation inflation-targeting monetary policy system will be strengthened and necessary infrastructure and conditions will be improved to increase its effectiveness. Measures will be taken to increase business loans and prevent excessive growth of consumer loans to ensure sustainable economic growth and support job creation. The exchange rate of mnt against foreign currency will follow the principle of flexible stabilization following the basic macroeconomic conditions.
Within the framework of the stability of the banking sector, independent branches and units of foreign banks will be introduced into the domestic financial sector to increase access to finance and ensure sustainable growth of the banking sector. Within the scope of improving proper governance of banks and optimizing risk management, a system for internal assessment of the main risks that may occur in banking operations will be created. The work of classifying and improving the classification of loans granted by banks to small and medium-sized businesses, changing their structure, and making refinancing arrangements flexible based on the principle of risk-based inspection will be studied and resolved.
Within the framework of strengthening the infrastructure of the financial markets and its institutions, the development of new products and services based on electronic payment and settlement of cross-border trade and fintech will be supported, and payment system control functions will be implemented. Support the development of an integrated system for measuring, reporting, and verifying the results of green and sustainable finance in the context of big data. In the taxonomy of sustainable development goals, organic food cultivation and production activities will be reflected, and a certain part of the package of loans and financing programs implemented with the support of the state will cooperate with financial institutions in the field of issuing green and sustainable loans per that taxonomy. The legal reform of the banking sector will continue, and the regulation of credit information will be improved.
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