The Business Council of Mongolia published its January 2020 Macroeconomic Updates report which contained the following key points: 1) Mongolia's GDP grew 6.3% in Q3 2019 while inflation was at 5.2% in December 2019. Exports reached a historic high of $7.6 billion in 2019, driven by record coal exports. 2) Foreign direct investment in Mongolia totaled $21.5 billion as of 2019, with the majority from Canada, China, Singapore, and Luxembourg invested mainly in mining. 3) The Mongolian currency, the togrog, depreciated 3.8% against the US dollar in 2019 as the central bank supplied $2.

1. Macroeconomic Updates
January 2020
The Business Council of
Mongolia
The Business Council of Mongolia
Express Tower, 11 Floor
Peace Avenue, Chingeltei District 1
Ulaanbaatar 15160, Mongolia
Office: +976-11-317-027
www.bcmongolia.org

2. I. Macroeconomic Data
-1.4%
1.4%
-1.4%
1.2%
4.2%
5.4%
6.0%
5.3%
6.2%
6.6% 6.6%
7.2%
8.6%
7.3%
6.3% 6.5%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
2016I
2016II
2016-III
2016-IV
2017-I
2017-II
2017-III
2017-IV
2018-I
2018-II
2018-III
2018-IV
2019-I
2019-II
2019-III
2019-
IV*
0%
2%
4%
6%
8%
10%
Inflation rate in
December 2019 was
5.2%
Household
consumption
48%
Gross
capital
formation
40%
Government
11%
Net export 2%
GDP increased 6.3% in
Q3 of 2019
6.3% in Q3 of 2019
Source: National Statistics Office The Business Council of Mongolia – Macroeconomic updates – 2020 January

3. -2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Annual Statistics: 2008 - 2019
Export Import Balance
Monthly Export & Import Statistics: Jan-Dec 2019
Foreign Trade: 2008 - 2019
Trade turnover in 2019 reached a historic high, 13.7 billion USD as of
December. Exports amounted to 7.6 billion USD, and imports 6.1 billion
USD, resulting in a trade surplus of almost 1.5 billion USD.
300
400
500
600
700
800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Monthly Export and Import Statistics: 2019 Jan-Dec
EXPORT IMPORT
II. Foreign Trade: Export, Import and Balance
Source: National Statistics Office
The highest revenue earned from exports in one month was in August, and
the least in February. As for imports, it gradually rose beginning in February
up until July, after which it falls until October before rising again.
The Business Council of Mongolia – Macroeconomic updates – 2020 January
U S D .
B i l l ion
U S D
M i l l io n

4. KEY COMMODITIES EXPORT REVENUE: 2010-2019
KEY COMMODITIES EXPORT VOLUME: JAN – DEC 2019
0
500
1000
1500
2000
2500
3000
3500
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Coal Copper Iron Ore Gold
0
50
100
150
200
250
300
350
400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Coal Copper Iron Ore Gold
Source: National Statistics Office The Business Council of Mongolia – Macroeconomic updates – 2020 January
U S D .
M i l l io n
• The vast majority of export revenue comes from mining
products, namely coal, copper, iron ore, and gold.
• These 4 commodities comprise 77% of total exports.
• Coal exports, which had been falling since 2011, reached a
historic high in 2019.
• 2019 export revenues by commodity: Coal – 3.1 billion USD;
Copper – 1.1 billion USD; Iron ore 576 million USD; Gold – 418
million USD.
• Export volume by commodity: 36 mln tons coal; 1.4 mln tons
copper concentrate; 8.4 mln tons iron ore; 9.1 tons gold.
• Export revenue rose between March and August.
III. Key Commodity Exports: Jan-Dec 2019

5. 2163.8 1912.1
3728.3 3654.2 3685.9
2974.7 2784.6
4125.5
3714.7 3709.8
2453.2
1697.3
0
1250
2500
3750
5000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
117.4 112
132 127.7 135.2 124.9 118.5 114.2
84.4
107.9 118.5 110.9
0
40
80
120
160
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
III. Key Commodity Exports: Jan-Dec 2019
608.6 572.8
890.4
770.3
647.1 625.9
719.6 719.3
580.3 565.2
880.4 868.9
0
300
600
900
1200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
7%
31%
10%
52%
Gold Copper Iron Ore Coal
KEY COMMODITIES
EXPORT- 2019
Source: National Statistics Office The Business Council of Mongolia – Macroeconomic updates – 2020 January
U S D . M i l l ion
U S D .
M i l l io n
U S D . M i l l ion

6. Most Invested Countries in Mongolia
1. Canada
2. China
CANADA
7.1 billion
USD
.
Most invested Economic sector
Mining &
Exploration, 81%
Wholesale and
retail trade;
maintenance of
cars and
motorcycles, 9%
Finance &
Insurance
Service, 5%
Construction, 5%
IV. Foreign Direct Investment in Mongolia
4. Luxembourg
3. Singapore
-25%
-10%
5%
20%
35%
50%
0.
5,000.
10,000.
15,000.
20,000.
25,000.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Q3
FDI stock FDI Growth
Source: Bank of Mongolia The Business Council of Mongolia – Macroeconomic updates – 2020 January
63% of foreign investment come from 4 countries: Canada, China, Singapore, and
Luxembourg.
CHINA
4.8 billion
USD
.
SINGAPORE
1.6 billion
USD
.
LUXEMBOURG
1.4 billion
USD
.
Since 2010, 21.5 billion USD has been invested in
Mongolia. The vast majority of investment is in
mining, which acounts for 81%, or 15.5 billion
USD. Next is Wholesale and Retail trade, and
maintenance of cars and motorcycles at 9%, or 1.6
billion USD. Third is finance & insurance at 5%, or
1 billion USD. Fourth is construction at 4%, or 0.9
billion USD.
USD .
Millio n

7. I. Foreign Exchange Reserves - BoM
249
153.3
72.6
300.5
111.65
277.66282.7
236.1
97
468
274.9
315
213.9
2630
2650
2670
2690
2710
2730
2750
0
100
200
300
400
500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020
Jan
BoM Intervention USD Rate
3624 3621
3660
3759
3706
4101
3618
3688
3956
4033 4015
-15%
-10%
-5%
0%
5%
10%
15%
3200
3400
3600
3800
4000
4200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Reserves
Growth
V. Currency Market: USD vs MNT
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Dec
• Forex reserves, which had fallen to 1.2 billion USD in 2016, rose
to 4 billion USD by the end of 2019.
• Seeing from the BoM Intervention Indicator, 62% of purchase
offers made by commercial banks were fulfilled.
• The MNT depreciated by 3.8% against the USD in 2019.
• The BoM supplied 2.8 billion USD into the market.
Source: Bank of Mongolia The Business Council of Mongolia – Macroeconomic updates – 2020 January
II. BoM Intervention Indicator by percentage
Foreign Exchange Reserves & Currency Market
USD .
Millio n
U S D .
M i l l i o n
III. BoM Intervention vs USD-MNT Rate

8. VI. Financial Market Indicators
15,964.1
16,123.9
16,032.9
16,238.4
16,503.5
16,124.9
16,506.516,540.6
16,628.5
16,289.4
16,483.8
16,929.6
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
15,400
15,600
15,800
16,000
16,200
16,400
16,600
16,800
17,000
17,200
Total Savings
19,642 19,582
19,700
19,909
20,300
20,229 20,290
20,476 20,433 20,470 20,479
20,834
10,000
10,500
11,000
11,500
4,500
5,000
5,500
6,000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
By USD By MNT
Citizen's MNT
Savings
Organization's MNT
Savings
For. Currency
Savings
For. Currency
Checking
Foreign
Currency
Savings &
Checking
Money Supply – M2 Total Savings Gross Savings GrowthSaving in MNT Saving in Foreign Currency
Source: Bank of Mongolia The Business Council of Mongolia – Macroeconomic updates – 2020 January
M2
• MNT savings comprise 66%, or 11.1 trillion MNT, of total savings, with the remaining 34%, or
5.8 trillion MNT, in Foreign Currency Savings & Checking.
• Individuals savings account for 9,35 trillion MNT savings, and organizations savings account
for 1,73 trillion MNT.
• M2 money supply rose by 6.9% year-on-year, while total savings rose by 9.62%.
M N T
B i l l i o n
Saving in Foreign
Currency.
Saving in Local
Currency.
10.2%
55.4%
20.5%
13.7%

9. 10.8%
11.2%
11.6%
12.0%
12.4%
16.7%
16.9%
17.1%
17.3%
17.5%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
MNT Loan Rate MNT Savings Rate
LOAN & SAVINGS RATE: MNT
CAPITAL MARKET: TOP-2O INDEX & TRANSACTIONLOAN VS SAVINGS RATE: USD
4.4%
4.6%
4.8%
5.0%
5.2%
5.4%
8.0%
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
11.5%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
USD Loan Rate USD Savings Rate
18,000
18,500
19,000
19,500
20,000
20,500
21,000
21,500
22,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Transaction volume Top-20 Index
VII. Loan & Savings market rates: Jan – Dec 2019
Source: Bank of Mongolia & Mongolian Stock Exchange The Business Council of Mongolia – Macroeconomic updates – 2020 January
I. LOAN & SAVINGS MARKET RATES
• The average interest rate on MNT loans was 17.2% at the beginning of the year, and 16.9% at
year’s end. Average savings rate fell from 12.1% to 11.5% in 2019.
• Interest on USD loans was 10.6%, while the weighted average interest rate on USD savings was
4.8%.
II. CAPITAL MARKET: TOP 20 INDEX & MARKET TRANSACTION
• The MSE Top-20 fell by 13% in 2019 to 19,973. The value of transactions amounted to 158.4
billion MNT in 2019, which was a significant decline from the previous year, when it was 244.1
billion MNT.
KEY HIGHLIGHTS

10. bcmongolia.org @bcmongolia @bcmongolia
Contact
S.Ganzorig
Director of Policy and Planning
Address: Floors 11,
Express Tower, Peace Avenue,
Khoroo 1, Chingeltei District, Ulaanbaatar
Phone: 976-11-317027
Email: ganzorig.s@bcmongolia.org
THE BUSINESS COUNCIL OF MONGOLIA