Mongolia: 2009 Article IV Consultation, Third Review Under Stand-by Arrangement, and Request for Modification of Performance Criteria: Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Mongolia
IMF Staff Country Reports, February 24, 2010
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- Canonical URL
- Mongolia: 2009 Article IV Consultation, Third Review Under Stand-by Arrangement, and Request for Modification of Performance Criteria: Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Mongolia
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Bibliographic details
- Published: February 24, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451827019.002
Summary and Key Findings
- The global economic crisis and collapse in copper prices in 2008 hit the Mongolian economy hard.
- Loose macropolicies and a tightly managed exchange rate pursued during the preceding boom years made the economy particularly vulnerable.
- The situation deteriorated markedly in early 2009.
- The authorities are making progress toward restoring health to public finances.
- Executive Directors supported the authorities’ policy priorities to:
- restore health to public finances,
- rebuild international reserves while maintaining a flexible exchange rate,
- bolster confidence in the banking system,
- protect the poor.
Economic Impact and Vulnerabilities
- Major shock: collapse in copper prices in 2008.
- Policy stance before the crisis: loose macroeconomic policies combined with a tightly managed exchange rate.
- Timing of deterioration: early 2009.
Policy Priorities and Recommendations
- Restore health to public finances.
- Rebuild international reserves while maintaining a flexible exchange rate.
- Bolster confidence in the banking system.
- Protect the poor.