The second conference on investment in Mongolia was recently held in London. It was attended by representatives of Rio Tinto, Kharanga Resource LLC, Trade and Development Bank, and Ulaanbaatar City Bank.

The Mongolian delegates explained the business and investment opportunities in Mongolia to representatives of foreign stock exchanges, and property, mining, transportation, railroad, and logistics organizations.

Olivier Descamps, managing director for Central Asia at the European Bank for Reconstruction and Development, noted that Mongolia’s economy is expected to be one of the world’s fastest growing economies over the next decade.

D.Enkhjargal of Mongol Bank read a paper about the measures the bank has taken to ensure economic and monetary stability, and the results of those measures. According to her, to fight inflation Mongol Bank has raised interest rates three times to 12.25 percent and has increased its reserves by 11 percent.

D.Enkhjargal noted that Mongol Bank has a foreign currency reserve of USD 2.7 billion under its policy of opening the foreign currency market to foreign and domestic investors.

She also said Mongol Bank has concluded a currency exchange agreement with the Chinese Central Bank amounting to MNT 1 trillion (5 billion yuan). The agreement will support trade between the two nations.

Foreign investors approved of Mongol Bank’s decisions to raise the equity fund of commercial banks from MNT 8 billion to MNT 16 billion, to raise payment capacity from 18 percent to 25 percent, and to raise its capital ratio from 10 percent to 14 percent. The changes have reassured domestic and foreign investors in the banking sector.