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DAILY NEWS WIRE

August 27, 2021

Bank of Mongolia issued payment service licenses to newly approved fintechs

The Bank of Mongolia has issued payment service licenses to fintech companies that meet the requirements of the Law on the National Payment System. Permission to issue digital currency was granted to MPSC NBFI LLC and Invescore Wallet NBFI LLC, and permission to issue payment cards was granted to Ashid Capital NBFI LLC, M LLC, and Gerege Systems LLC.
G. Enkhtaivan, deputy governor of the Bank of Mongolia, emphasized the importance of fintech companies complying with the law, introducing payment services that serve the interests of their clients, and ensuring confidentiality and security.
Previously, permission was granted to Super Up Wallet LLC and Ard Credit NBFI JSC.

www.news.mn

Mongolian government bond price rose sharply in August

The price of the Mongolian government’s century bond has risen sharply since August 23. It broke a July 28 record high by 1.16 percent to reach a new high of 98.1 USD.
The required rate of return has been increasing since August 20. The yield on the century bond recently rose to 4.7 percent. The 500 million USD century bond was initially issued with a 4.45 percent yield.

www.bloombergtv.mn

FDI totals 798.26 million USD in Q2’21

According to preliminary results for the second quarter of 2021, foreign direct investment (FDI) reached 798.26 million USD, an increase of 14.7 percent year on year.
The Bank of Mongolia predicted that imports of investment goods would increase as the economy recovered, with about 1.4 billion USD in direct investment expected this year. Half of this figure, 600-700 million USD, is expected to come from the Oyu Tolgoi project. About 90 percent of total investment was in the mining sector.
In the first six months of the year, the balance of payments showed a deficit of 54.2 million USD, impacted by a sharp current account increase. The central bank estimates the balance of payments will have a surplus of 460-470 million USD this year.
Prices for imported goods have been rising due to rising international shipping costs. As a result, trade in goods and services showed a deficit of 127.5 million USD during the reporting period.

www.bloombergtv.mn

Mongolian market’s first over-the-counter stock is ready to be released

Golomt Capital JSC has been chosen to be the main underwriter for Moncon Construction LLC’s Moncon bond, the domestic market’s first over-the-counter (OTC) stock. The OTC market saves issuers time and money, attracts short-term financing, creates a secondary market for debt instruments, improves securities liquidity, and provides information transparency.
Moncon Construction LLC has successfully implemented office and apartment construction projects such as New Horizon Office, Mandala Town, Police Town, and Comfort Town. Currently, the company is building the 360 Mandala Tower and Mandala Garden luxury apartments.

www.news.mn

REWIND: Week of August 23, 2021

August 23

Mongolia and Slovenia have signed an agreement on transporting passengers and freight by road. Mongolian Ambassador to Slovenia G. Battungalag and Stanislav Raščan, State Secretary at the Slovenian Ministry of Foreign Affairs, signed an agreement on transporting passengers and freight by road transportation.
Average household income increased due to increased pensions and benefits. In the second quarter of this year, the average monthly household income reached 1.5 million MNT, increasing by 3.9 percent compared to the same period of the previous year. This was due to a 70.1 percent increase in pension and benefit income.
Mining sector revenue totaled 2.8 trillion MNT as of July. With commodity prices rising in the international market, revenue from the mineral resources sector reached 2.8 trillion MNT, which accounted for 32.5 percent of total revenue.
COVID-19 update. In the last 24 hours, 1,566 new COVID-19 cases were reported in Mongolia, bringing the total number of reported cases to 195,250. Of these new cases, 342 cases were reported in Ulaanbaatar, and 1,224 were reported in the provinces.

August 24

Bogd Khan Railway construction launched. Construction of the Bogd Khan Railway was inaugurated on Monday. The government plans to finish construction within three years.
ICT revenue increased by 14.1 percent in the first half of 2021. Revenue from the information, communications, and technology sector increased by 14.1 percent in the first half of the year, reaching 748.6 billion MNT, mainly due to an increase of 40.6 percent in postal service operations, 35.1 percent in other telecommunications services, and 17.6 percent in wireless services.
Coal export stops for two weeks at Gashuunsukhait-Gantsmod Port. Due to the sharp increase in the number of COVID-19 cases in Mongolia, Chinese officials have decided to suspend coal transportation through Gashuunsukhait-Gantsmod Port for two weeks, starting on August 23.
Agricultural exchange data. Last week, two day trades reached a total of 5 billion MNT. Since the beginning of August, trading activity on the exchange has been relatively low.

August 25

National committee on intensifying economic activity held its first meeting. Although Mongolia’s credit rating is stable, there is still criticism that the legal framework does not adequately protect foreign investors and businesses.
Cabinet to discuss extending the high alert state of emergency. Cabinet is scheduled to discuss 15 issues during today’s meeting, including a resolution on extending the country’s high alert state of emergency.
Digital Nation 2021 to be held. During Digital Nation 2021, a policy discussion and forum will be held to discuss the past, present, and future of the sector, as well as the importance of the growing information technology sector, and ways to strengthen links with other sectors.
COVID-19 update. In the last 24 hours, 2,433 new COVID-19 infections have been detected, bringing the total number of registered cases to 199,279.

August 26

Cabinet session update. To decrease the spread of COVID-19, the high alert state of emergency will continue until the end of the year. Temporary passenger traffic procedures at the border have been extended to December 31, with the exception of entry at Chinggis Khaan International Airport.
The FRC cautions the public about cryptocurrency. The Financial Regulatory Commission (FRC) has urged citizens to beware of any activities related to unregulated cryptocurrencies, bitcoin, and virtual assets that promise high profits and benefits.
Mongolia exported 806,500 tons of copper concentrate as of August 19. The Ministry of Mining and Heavy Industry reported that Mongolia exported a total of 806,500 tons of copper concentrate as of August 19, decreasing by 6.8 percent year-on-year.
Rio Tinto to cooperate with InvesCore to support SMEs. Through the program, Rio Tinto's COVID-19 Pandemic Volunteer Fund will provide 2.9 billion MNT (1 million USD) to support small and medium-sized businesses in sustaining their operations.

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