Mongolia’s foreign exchange (forex) reserves rose to USD 3.4 billion at the end of 2022. Therefore, country of 3.4 million was able to avoid a big risk of entering into a program with the International Monetary Fund and declaring default.

Due to the deepening of a current account deficit caused by external and internal economic conditions, Mongolia’s forex reserves had shrunk to USD 2.6 billion at the end of August, hitting the lowest level since 2017.

Mongolia must make sovereign bond payments in the coming two years. The Government will pay USD 1.3 billion in 2023 alone. Therefore, the Government need to increase the forex reserves.

Mongolia’s forex reserves stood at 4.9 billion dollars at the end of April 2021, hitting an all-time high.