Foreign currency deposits soar to 4.6 trillion USD

The National Statistics Office (NSO) announced that the money supply (M2) stood at 27.3 trillion MNT in October based on preliminary estimation, which is an increase of 183.4 billion MNT or 0.7 percent from the same period of last year.

The growth was caused by the increase in foreign currency transactions, up by 82.2 percent (1.9 trillion MNT), and foreign currency deposits, up by 15.2 percent (611.4 billion MNT).

The preliminary findings for October show that the money supply (M1) or money outside depository institutions and MNT-linked accounts reached 6 trillion MNT. This is a drop of 2.1 percent (128.7 billion MNT) from the previous month but a rise of 6.3 percent (358.5 billion MNT) from a year ago. In the money supply (M1), about 87.8 percent (5.3 trillion MNT) consists of MNT-linked accounts while 12.2 percent (735.6 billion MNT) consists of money outside the depository institutions.

Cash in circulation at the end of October reached 1 trillion MNT, a rise of 0.7 percent (6.9 billion MNT) from the previous month but a drop of 7.5 percent (81.6 billion MNT) from the same period of last year.

Net foreign net assets decreased while net domestic assets increased. The preliminary results show that net foreign assets reached 113.9 billion MNT, a rise of 676.4 billion MNT from the previous month but a decrease of 4.2 trillion MNT from this time of last year. The net domestic net assets, on the other hand, amounted to 27.1 trillion MNT, a drop of 468.1 billion MNT from the previous month and of 4.4 trillion MNT from the same period of last year.

Net assets attributed to the rise in the money supply. MNT-linked deposits have sunk to 12.4 trillion MNT, 152.8 billion less from the previous month and 2.7 trillion less than in October last year. About 90.3 percent (11.2 trillion MNT) of all MNT-linked deposits belong to citizens and the rest (1.2 trillion MNT) belong to enterprises.

Foreign currency deposits amounted to 4.6 trillion MNT, a rise of 26.8 billion MNT from the previous month and of 611.4 billion MNT from a year ago.