President submits draft amendment to law on currency settlements

Z.Enkhbold, the president’s chief of staff, has submitted a draft amendment to the Law on Currency Settlements to Speaker of Parliament M.Enkhbold on behalf of President Kh.Battulga.

The president’s amendment was drafted with the purpose of creating legal arrangements for the Mongol Bank to ensure the stability of the national currency, hold and manage the foreign exchange reserves, and carry out the cash transactions and settlements of a legal entity with currency earnings from the exploitation of a mineral deposit of strategic importance, as part of its duty to increase the foreign exchange reserves of Mongolia.

Kh.Battulga’s concern is that in accordance to the current Law on Currency Settlements and the Law on Central Bank, Mongol Bank has no authority to negotiate with a legal entity earning a large amount of foreign currency, except for buying currencies. This is despite the fact it regulates currency circulation, and holds and manages the foreign exchange reserves.

If approved, the draft amendment will allow Mongol Bank to register the transaction account of a legal entity, which established an investment contract with the government, exploits a mineral deposit of strategic importance, and with foreign exchange earnings in the amount set by Mongol Bank.

Citizens were allowed to submit proposals for the draft amendment to the Law on Currency Settlements between May 11 and June 18, through www.president.mn, the official website of the President’s Office.