Mongolia's banking sector records a sharp decline in net foreign assets in June

The net foreign assets of Mongolia's banking sector declined by 60.2 percent year-on-year in June, amounting to 3.9 trillion MNT (approximately 1.08 billion USD), according to data released Wednesday by the National Statistics Office. In contrast, net domestic assets saw a significant increase during the same period, rising 23.6 percent to reach 39.1 trillion MNT (about 10.90 billion USD).

Commercial banks in Mongolia also reported strong growth in deposits, which climbed to 22.6 trillion MNT (around 6.30 billion USD) by the end of June 2025. USD savings rose sharply by 16.9 percent, while deposits in MNT increased by a more moderate 15 percent, according to the NSO.

As of June, Mongolia’s banking network comprises approximately 1,500 branches operated by 11 commercial banks nationwide. The shift in foreign and domestic asset composition reflects changing investor sentiment and macroeconomic adjustments following external financial pressures. Analysts suggest that continued growth in domestic deposits may help cushion the impact of declining foreign reserves in the short to medium term. 

Source: www.thestar.com.my