The Bank of Mongolia held the Non-Mining Export and Supply Chain Financing Conference on November 17, 2025, to discuss how Mongolia can unlock new economic potential by strengthening its non-mining sectors, especially wool and cashmere.
Despite having a livestock population of 57.65 million in 2024, Mongolia continues to export the majority of its animal fibers in raw or semi-processed form. Non-mining exports of cashmere, wool, hair, skins, and hides generate an estimated USD 400 million annually, yet account for only 7 percent of total export volume, compared to 93 percent from minerals.  
Lkhagvasuren Byadran, Governor of the Bank of Mongolia (BoM), highlighted a study showing that with targeted investment and better value chain development, the wool and cashmere sector alone could generate over USD 1 billion annually. Currently, only 8.4 percent of processed cashmere is turned into finished consumer products, revealing a major gap in value-added production.
The forum emphasized the need for tailored financial instruments to support textile and fiber processing. Director of the Research and Statistics Department at BoM, B. Dulamzaya, reported that, as of early 2025, Mongolia has shifted its export focus from washed to combed cashmere – a higher value product that earns 1.8 times the price.
The average loan in the processing sector is MNT 1.275 billion, with interest rates of 11.2 percent and a 28-month term.
As of the third quarter of 2025, MNT 1.419 trillion had been disbursed to over 4,000 borrowers, with MNT 42.4 billion directed specifically to wool and cashmere processing. Of these, 16 borrowers received MNT 42.4 billion specifically allocated for wool and cashmere processing and raw material preparation. As of October 31, 2025, a single borrower held an outstanding loan balance of MNT 408 million. Out of 303 loan applications totaling MNT 876.1 billion, 168 borrowers were approved for financing amounting to MNT 473 billion. Currently, enterprises in the cashmere sector operate under an average interest rate of 8.1 percent, with loan maturities averaging 23 months. These firms collectively hold a loan balance of MNT 4.9 billion, with average monthly repayments of MNT 234 million, reflecting stable credit activity and a consistent repayment capacity across the industry.
The event brought together representatives from the Mongolian Bankers Association, the Wool and Cashmere Association, domestic producers, commercial banks, and international financial institutions to discuss how to scale up financing and industrial capacity.

Published Date:2025-11-18