Mongolia Raises Rates to Record High of 15%

Mongolia's Central Bank raised the interest rate to an all-time high of 15% to stabilize the economy and increase the yield of the national currency, the Tucker. The market is reacting to this decision, as the currency has lost value. Despite positive economic indicators like a trade surplus, the Central Bank emphasizes the need for new policies. The government also announced salary cuts for state-owned enterprise executives to prevent default.

What was the primary reason for the Central Bank of Mongolia to increase the interest rate to 15%?

• To decrease inflation

• To boost the yield of the Tugrik

• To reduce unemployment

• To attract foreign investment

How much has the Tugrik lost in value since the end of July?

• 12%

• 8%

• 10%

• 5%

What positive economic change was noted in Mongolia's official statement?

• Growth in GDP

• Rise in foreign reserves

• Increase in trade surplus

• Decrease in national debt

What action is the Central Bank of Mongolia planning to take to stabilize the Tugrik?

• Auction U.S. dollars

• Implement fiscal policies

• Increase foreign reserves

• Reduce interest rates

What measure has the Mongolian government announced to prevent a default?

• Privatization of state-owned enterprises

• Reduction in public spending

• Salary cuts for executives

• Increase in taxes