The Bank of Mongolia (BoM) has collaborated with a technical assistance team from the International Monetary Fund (IMF) to upgrade its monetary policy framework and implementation.

During the mission, the IMF team evaluated the central bank’s policy apparatus, operations, and economic forecasting models, and offered concrete recommendations to improve their overall reliability and effectiveness. The team also provided valuable advice on refining the central bank’s monetary policy approach. It recommended further developing monetary policy instruments, including open market operations, reserve requirements, standing facilities, and foreign exchange auctions, and expressed its readiness to continue providing technical assistance.  

Since 2014, the BoM has used a quarterly projection model to formulate monetary policy, forecast economic developments and analyze the effects of alternative policy choices. According to the central bank, the recent technical assistance mission conducted a comprehensive review of the model’s structure, exchange rate and interest rate calculations, and economic outlook projections to identify areas for improvement.

The joint effort also focused on improving forecast accuracy, strengthening model application and development, and building capacity among BoM specialists.

Narantsogt Sanjaa, Governor of the BoM, thanked the IMF technical team for their professional support and advice, emphasizing that the collaboration has helped refine the monetary policy framework and shape its future development.

At the end of the meeting, both sides highlighted opportunities to continue their cooperation in improving monetary policy analysis and economic forecasting methodologies, enhancing the quality of policy decisions, refining monetary policy instruments, and strengthening the monetary policy transmission mechanisms.

Published Date:2026-10-13