According to the Bank of Mongolia or Mongol Bank, the country’s foreign exchange reserves reached USD 2.5 billion in December. It is the highest since December 2016. Mongolia’s official gold reserve has increased to 18.4 tons.

The growth was attributed to the implementation of the first and second phases of the IMF’s Extended Fund Facility programme in Mongolia, a significant increase in gold purchases by the Bank of Mongolia, and the renewal of a currency swap agreement with China’s central bank.

The restoration of investor confidence in Mongolia and the Mongolian government’s policy such as the implementation of the 2016-2020 Economic Recovery Programme and the reduction of budget expenditure also led to the increase in foreign exchange and gold reserves, according to the bank.

Experts with the Mongolian central bank predict that by the end of 2019 Mongolia’s foreign exchange reserves will reach 3.8 billion dollars, and by 2020, 4 billion dollars.