The draft will be submitted to the Parliament before October 1st. In conjunction with the draft, the BoM proposed to amend some 10 laws including the Laws on Currency Regulation, the Central Bank, the Banking Law, and Law on Combating Money Laundering.

"The BoM's interest rate of monetary policy had been lowered from 14 per cent to 12. Recently, the Monetary Policy Council met again and made a decision to uphold the 12 percent interest. As looking at the basic economic conditions, the monetary policy rate could be reduced. However, instability continues in the market and other fields. For instance, the Government was dismissed recently and it is unclear what policy will be maintained by the new Government. The International Monetary Fund intended to make assessment on Mongolia's economic situation, but it has postponed it for an uncertain period of time in connection to the Government's dismissal. Consequently, some financing to Mongolia has been delayed. Therefore, lowering monetary policy interest rate directly would be risky,” said B.Lhagvasuren, BoM Deputy Governor.

In the monetary policy draft, BoM set a goal to ensure inflation stabilization, maintaining inflation rate at 8 per cent in nearest 3-4 years and lowering it further. Exchange rate will be determined in line with volume of USD in the economy, foreign trade balance and price of main export products. Moreover the BoM will work independently, transparent and open, publicizing its decisions, said B.Bayardavaa, chairman of the Monetary policy Department.