Mongolia’s broad money supply grew substantially at the end of 2025. Consequently, this sustained monetary expansion indicates increasing financial system liquidity. The National Statistics Office released the preliminary data this week. Therefore, the M2 aggregate reached 47.1 trillion tugrik in December. This notable monetary expansion reflects an 8.7 percent annual increase.
The year-on-year growth added 3.8 trillion tugrik to the money supply. Furthermore, a surge in domestic currency deposits primarily drove this change. Those deposits grew by an impressive 4.0 trillion tugrik overall. Additionally, this component alone expanded by 18.3 percent annually. This specific trend underscores a key driver behind the ongoing monetary expansion.
The narrow M1 money supply presented a more mixed picture. It totaled 11.2 trillion tugrik at the period’s end. Moreover, this figure represented a 3.9 percent decrease from last year. However, it still showed a 1.0 percent monthly increase from November. Current accounts held the overwhelming majority of the M1 total.
Quasi-money also grew significantly to 35.8 trillion tugrik. This category experienced a strong 13.4 percent annual rise. Similarly, it increased by 3.3 percent from the previous month. Domestic currency time deposits formed the largest share here. They accounted for nearly 72.7 percent of all quasi-money.
Currency in circulation showed modest but steady growth. It reached 1.2 trillion tugrik by the end of December. This amount marked a 1.8 percent increase from one year prior. It also rose 3.0 percent from the preceding month. These figures complete the comprehensive monetary snapshot.
Economists analyze this data for inflationary and growth signals. The sustained monetary expansion could stimulate economic activity. However, it also requires careful monitoring for potential price pressures. The central bank will likely consider this data in future policy meetings. Managing this monetary expansion is crucial for economic stability.
The growth in domestic deposits suggests rising public confidence. Citizens and businesses are choosing to hold tugrik savings. This trend supports the national currency’s strength and stability. The monetary expansion also provides banks with more resources for lending. Such lending can subsequently fuel business investment and consumption.
Future outlooks involve balancing growth with financial stability. Policymakers must ensure the monetary expansion does not overheat the economy. The data will influence upcoming fiscal and monetary policy decisions. Continued monitoring of deposit and credit growth rates is essential. This monetary expansion phase will shape the 2026 economic landscape.
In conclusion, the latest figures reveal a liquid and growing financial system. The clear monetary expansion provides both opportunities and challenges. Authorities must now guide this liquidity toward productive economic uses. The health of the banking sector appears robust based on these aggregates. Mongolia’s economy enters the new year with substantial monetary momentum.
