Mongolia: Technical Assistance Report-Central Bank Communications

This paper highlights the details of the technical assistance (TA) provided to the Bank of Mongolia (BOM) on central bank communications. The purpose of the mission was to assist the authorities in enhancing the existing communication framework of BOM, and to suggest a roadmap for eventual follow-up TA missions. Specifically, the technical assistance requested by the BOM was to better understand global trends in central bank communications and what are shaping up as well-established international practices. The analysis focuses on the assessment of the monetary and financial policy communications as well as the evaluation of the internal organization of the BOM’s communication function. The organizational arrangements are reviewed in terms of structure, resources, and procedures. The report also highlights the importance of establishing several pre-conditions for effective central bank communications, which include the presence of sound legal and normative frameworks particularly in relation to the mandate and independence of the central bank. The report identifies several areas where BOM could enhance the effectiveness of its communications. A set of specific prioritized recommendations is presented in this paper. The recommendations aim at improving the coverage, clarity, consistency, and effectiveness of communications.