Balance of payments reaches 551.5 million USD
- By Amarjargal Munkhbat -
- Oct 05,2023
According to the data released by the Mongol Bank, the balance of payments showed a surplus of 551.49 million USD as of the end of August. This is a three-fold increase compared to the profit in the same period last year, reports Bloombergtv.
In terms of foreign trade, the Mongol Bank points out that the balance of payments is still expected to be profitable at the end of the year, along with the decrease in the import of consumption and industrial inputs. In other words, due to the recovery of trade port operations with China and the improvement of transportation conditions, the physical volume of coal exports has reached a historical high in 2023.
Also, the prices of major mineral products such as copper, coal, and iron ore in the international market are still higher than the average level during the pandemic, which will increase the income generated from export and is expected to increase by 2.2 billion USD from the previous year, according to the Central Bank.
This year, the annual investment of the Oyu Tolgoi project is expected to be about 1.2 billion USD, but as the transition to sustainable production will decrease from 2024, foreign direct investment will decrease, so the Central Bank clarifies that a replacement capital flow is needed.