The agreement between Mongol Bank and the People’s Bank of China, with China’s central bank, to swap MNT for RMB has been extended by three years.
Deputy Governor of Mongol Bank B.Lkhavgasuren met with Deputy Governor of the People’s Bank of China Yi Gang on February 22, in Beijing. The two counterparts came to an agree-
ment to extended the swap agreement until 2020.
The previous agreement was set to end in August 2017. Discussions regarding an extension were at a standstill until February 19, when Mongol Bank President N.Bayartsaikhan announced that the People’s Bank of China had expressed interest in continuing discussions. As stated by Bayartsaikhan, the International Monetary Fund acted as an intermediary in the discussions.
During an Asia Europe Meeting conference held in August 2016, the Chinese Prime Minister told Prime Minister J.Erdenebat that the swap agreement would be extended, and that it was possible to increase the agreement by 10 billion RMB.
Mongol Bank has stated that the swap agree- ment between the two central banks is an important component in stabilizing foreign trade, investment, and finance.