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What is the Mongolian Tugrug (MNT)?

Credit Ratings & Outlook

In the latest credit ratings from December 1970, Moody's gives Mongolia a B1 rating, with a stable outlook. Fitch has a stable outlook with a B+ rating. Finally, S&P last issued a BB- rating, with a stable outlook.

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

Central Bank Rate

The current central bank interest rate is 13.25%. This is higher than 2011, which was 12.25%.

GDP

In 2010 the total GDP was $6,200,357,070 in US Dollars, while the per capita GDP was $2,249. It grew by 6.37% over the previous year.

Unemployment

The latest unemployment rate for 2010 is 9.99%.

Consumer Price Index

The latest consumer price index for 2010 is 167.78.

Political Structure

The current head of the government is Prime Minister Sükhbaataryn Batbold, and the head of state is President Tsakhiagiin Elbegdorj (in an executive role).

Currency Details

The Mongolian Tugrug / Tugrik, denoted by the code MNT, is the official currency of Mongolia. Notes of the Tugrug come in denominations of 10,000, 5000, 1000, 500, 100, 50, 20, 10, 5, 3 and 1; coins come in 200, 100, 50 and 20 Tg. All notes carry the face of Chinggis Khan or Sukhbaatar on them, and because of their age, can often look alike.

Travel Notes

The import of local currency is limited to Tg 815, provided that it is declared on arrival. Bank certificates must be shown. The import of foreign currency is limited to US 00 or equivalent. The export of local and foreign currency is limited to the amount declared on arrival.

Moody’s Rating
B1, 03 Oct 2005
S&P Rating
BB

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

What does it look like?

Political Structure

The president of Mongolia serves as head of state, commander in chief of the armed forces, and the head of the National Security Council. He is popularly elected by a national majority to serve a four-year term, and he is limited to serving two terms. The constitution of Mongolia gives the president the right to propose a prime minister, call for government dissolution, initiate legislation, veto all or selected parts of legislation, and issue decrees (which become effective with the prime minister’s signature). The State Great Hural (SGH) chairman exercises presidential power in the absence, incapacity or resignation of the president. As the supreme government organ, the SGH is empowered to enact and amend laws, determine domestic and foreign policy, ratify international agreements, and declare a state of emergency. The SGH meets semiannually. SGH members elect a chairman and vice chairman who serve 4-year terms. SGH members are popularly elected by district for 4-year terms. The country’s prime minister, who serves a four-year term, heads the government. The prime minister is nominated by the president and confirmed by the SGH. Subject to the SGH’s approval, the prime minister is responsible for choosing a cabinet. As for government division, the chief of state, head of government and cabinet make up the executive branch while the unicameral State Great Hural (with 76 seats for four-year terms) makes up the legislative branch.

Prominent Figures

Chief of State President Tsakhia ELBEGDORJ (since 18 June 2009) Head of Government Prime Minister Sukhbaatar BATBOLD (since 29 October 2009); First Deputy Prime Minister (Norov ALTANKHUYAG (since 20 September 2008); Deputy Prime Minister Miegombyn ENKHBOLD (since 6 December 2007) Cabinet Cabinet nominated by the prime minister in consultation with the president and confirmed by the State Great Hural (parliament) Elections presidential candidates nominated by political parties represented in State Great Hural and elected by popular vote for a four-year term (eligible for a second term); election last held 24 May 2009 (next to be held in May 2013); following legislative elections, leader of majority party or majority coalition is usually elected prime minister by State Great Hural Election Results in elections in May 2009, Tsakhia ELBEGDORJ elected president; percent of vote – Tsakhia ELBEGDORJ 51.24%, Nambaryn ENKHBAYAR 47.44%, others 1.32%

Key Economic Factors

Economic Overview:

Mongolia’s economy has traditionally been based on herding and agriculture. The nation is also largely characterized by its extensive mineral deposits, of which copper, coal, molybdenum, tin, tungsten and gold account for a large part of industrial production. Mongolia at one time received substantial Soviet assistance that, at its height, constituted a third of GDP. However, upon dismantlement of the USSR, this assistance disappeared almost overnight (1990-91). Due to this abrupt change, the following decade proved extremely rocky for Mongolia’s economy, as the lack of assistance was further exacerbated by political inaction and natural disasters. Severe winters and summer droughts in 2000, 2001, and 2002 resulted in massive livestock die-off and zero or negative GDP growth. Additionally, this was compounded by falling prices for Mongolia’s primary sector exports and widespread opposition to privatization. The economy improved from 2002 to 2003 (with growth increasing from 4% to 5%), due to high copper prices and new gold production. Another fundamental attribute of Mongolia’s economy is that it is highly sensitive to the activity of its neighbors. Mongolia purchases 80% of its petroleum products and considerable electric power from Russia, for example, and is thus extremely vulnerable to price increases. As for exports, China is Mongolia’s chief partner and a main source of the “shadow” economy. The World Bank, with confirmation of other financial institutions, estimates the grey economy to be at least equal to that of the official economy. The actual size of this grey – largely cash – economy is difficult to calculate since the money does not pass through the hands of tax authorities or the banking sector. Mongolia joined the World Trade Organization (WTO) in 1997 and seeks to expand its integration into Asian regional economic and trade regimes.

Industries:

Construction and construction materials, mining (coal, copper, molybdenum, fluorspar, and gold), oil, food and beverages, processing of animal products, cashmere and natural fiber manufacturing.

Agriculture Products:

Wheat, barley, vegetables, forage crops, sheep, goats, cattle, camels and horses.

Export Commodities:

Copper, apparel, livestock, animal products, cashmere, wool, hides, fluorspar and other nonferrous metals.

Import Commodities:

Machinery and equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, sugar and tea.

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