March 4, 2024

A “quasi-fiscal policy” adopted by the Bank of Mongolia (BoM) suffers from poor controls and could conflict with the central bank’s other responsibilities, leading to huge losses, a new report has found.

Between 2012 and 2016, the Bank of Mongolia implemented several quasi-fiscal policies to finance parts of the economy. Although initiated by governments, central banks act as both financiers and administrators of policy.

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