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LAW ON CENTRAL BANK AMENDED

LAW ON CENTRAL BANK AMENDED
12
Jan

LAW ON CENTRAL BANK AMENDED

Parliament plenary meeting has passed amendments to the law on Central Bank with 69.1 percent vote. The amendments renewed legal status of MongolBank or its independence and decision making process in accordance with best practices and principles adhered by central banks of other countries. The amended law on Central Bank and related laws, set to be effective April 1 2018, will limit budgetary operations not related to the purpose of the BoM and ensure the bank’s independence from Government, having interactions with it within regulations of law. The law is expected to contribute to long-term economic growth by creating legal environment for development and implementation of proper monetary policy and maintenance of financial and price stability. The purpose of the amendments is to create a legal basis for having an international standard Central bank. It is also aimed to improve governance of central bank by shifting to collective decision making and to update monetary policy instruments.