Mongolia: Fourth Review under the Stand-By Arrangement and Request for Modification of Performance Criteria
IMF Staff Country Reports, March 29, 2010
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Bibliographic details
- Authors: Arrangement, Request
- Published: March 29, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455203253.002
Executive findings
- All end-December performance criteria were met.
- The indicative limit on the fiscal deficit was met with a comfortable margin.
- Inflation, after falling rapidly into negative territory for the past few months, has swung upward and could reach 8 percent.
- The flexible exchange rate regime continues to work well.
- The central bank has intervened sparingly in recent months.
Macroeconomic outlook and risks
- Inflation trajectory: inflation reversed from rapid declines into negative territory and could reach 8 percent.
- Exchange rate and reserves: the flexible exchange rate is functioning effectively; limited central bank intervention to date.
- Fiscal stance: fiscal deficit remained within the indicative limit with a comfortable margin as of end-December.
Policy recommendations and priorities
- Contain inflation:
- Prioritize measures to stabilize and reduce upward inflationary pressures.
- Maintain fiscal discipline:
- Continue adherence to fiscal limits and performance criteria to preserve macroeconomic stability.
- Exchange rate management:
- Maintain the flexible exchange rate regime that is performing well and limit intervention to necessary circumstances.
Subjects emphasized
- Bank deposits; Bank resolution; Banking; Central banks; Credit; Exchange rates; Financial crises; Foreign exchange; International reserves; Monetary base; Money.
Source: Mongolia: Fourth Review under the Stand-By Arrangement and Request for Modification of Performance Criteria, March 29, 2010.