March 31, 2017
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Mid-term strategic partnership agreement signed with Japan

Summary: The Speaker of Parliament signed a mid-term strategic partnership agreement with Japan, outlining the goals and guidelines of economic partnership between the two countries for the next five years. The agreement outlines cooperation in trade, economic partnership, political ties, investment, defense, security, culture, and many other areas. The two sides agreed to pay special attention to mutually beneficial economic and trade partnership.

Keywords: Japan, Speaker of Parliament   The Century News /page 2/

Erdenes Tavan Tolgoi's debts to Chalco repaid 

Summary: Erdenes Tavan Tolgoi (ETT) signed a sales agreement with Chalco in 2011 to receive a 350 million USD advance payments for the supply of coal. Last Thursday, the remaining 110 million USD of the company's debt to Chalco was paid. A debt of 64 million USD owed to TTJV Co. was also fully repaid. Revenue from the East Tsankhii mine will now go to the state. In the agreement made with Chalco, following the debt's repayment, 80% of coal from the East Tsankhii mine is to be supplied to Chalco. The management of ETT has sent a request to change the amount allotted.
Executive Director of ETT D. Ariunbold stated, “The day that the debt is repaid to Chalco is a celebratory day for the Government of Mongolia, the company’s stockholders, and every Mongolian citizen.” D. Ariunbold noted that a Mongolian company won the bid to utilize the West Tsankhii mine, and the mining license fee of 200 billion MNT is to stay in the Mongolian economy.
The company mined 2.8 million tons of coal in the first quarter of 2017 and exported 2.1 million tons. According to calculations, around 9 million tons of coal will be mined and the sale of 560 million USD is to expected to take place this year. The Prime Minister received the management of ETT and congratulated them for paying off their debts. The PM recommended that the management create the opportunity to give dividends to citizens holding ETT stock.

Keywords: Erdenes Tavan Tolgoi, Prime Minister, stocks   The Official Gazette /page 2/

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Moody’s sets Mongolia’s long-term credit rating at CAA1

Summary: Moody’s Investors Service is maintaining Mongolia’s long-term credit rating at CAA1.  Starting on February 15, Moody’s researched the possibility of lowering Mongolia’s credit rating, but has decided against a change. Moody’s highlights that the expectation that Mongolia will enroll in the IMF’s extended fund facility program and receive financial assistance from international organizations affected their decision to not alter the credit rating. Moody’s warned that the budget deficit is still expected to be high, which could result in a rise in liquidity pressure in the next 12-18 months. The only positive short-term factor impacting the Mongolian economy is the IMF’s EFF program. Moody’s highlighted that in the medium and long term, an increase in FDI and the acceleration of the mining sector is crucial for the economy.

Keywords: Moody’s, credit ratings

The USD exchange rate falls for 5 consecutive days

Summary: The USD exchange rate fell for 5 consecutive days, reaching 2,452.44 MNT. The exchange rate of USD against the MNT decreased by 0.77% this month, and on Thursday, the central bank bought 9.9 million USD in spot trading through a currency auction from commercial banks. The exchange rate of CNY against MNT decreased 0.9% this month, reaching 355.8 MNT. Commercial banks asked to buy 19 million CNY and sell 1 million CNY during the currency auction, but the Bank of Mongolia declined the request.

Keywords: USD, exchange rate, currency

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The American Chamber of Commerce in Mongolia · 8F Naiman Zovkhis Building 21 Seoul Street · Ulaanbaatar, 01 14251 · Mongolia