BUSINESS COUNCIL of MONGOLIA NewsWire

www.bcmongolia.org

info@bcmongolia.org

Issue 142, October 29 2010

NEWS HIGHLIGHTS:

Business: Ivanhoe files counter-claims in dispute with Rio;

Appellate court rules in favor of Khan Resources;

SouthGobi takes stake in Aspire Mining;

Ivanhoe tension will not delay Oyu Tolgoi, says Rio CEO;

Moody's assigns Ba3 rating to notes and “negative” outlook to TDB's EMTN Program;

Winsway‟s sale of Mongolian coal up 141% y-o-y;

Alamar Resources acquires assets in Mongolia;

Erdenes Tavan Tolgoi IPO likely in late 2011;

Pepsi-Cola to be produced here;

Petro China caused ecological damage worth MNT1 billion, probe concludes;

PetroChina net rises 13% as oil demand climbs;

No accident at Oyu Tolgoi after 4.5 million man hours of work;

SouthGobi contracts Leighton to build 45-km paved highway from mine to China;

The value saga of Oyu Tolgoi;

Caterpillar earnings leap.

Economy: Rise in budget deficit will upset everything, says Central Bank Governor;

Stronger MNT is bad for export, domestic producers;

Foreign currency reserve likely to reach USD2 billion by year-end;

Cultivators start paying back loans;

Mongolia‟s economic recovery getting broad-based, notes World Bank;

World Bank support for Government‟s reforms continues;

Central Bank Governor tells MPs why interest rates cannot be reduced;

Besides a large one, Mongolia plans to have smaller oil refineries;

Mongolia has pressures to defuse before fulfilling its promise;

Laugh if you like, but Mongolia is a serious play;

Nomads no more, a steppe-land struggles with new riches;

Singapore Exchange's takeover bid for ASX could threaten Hong Kong Exchange;

Asia needs a market for bourse ownership, but that's a long way off;

IMF calls for higher Asian currencies;

China shifts attitude on growth;

Brazil eyes royalty rates change;

Rethinking the light bulb with OLED technology.

Politics: Mongolia ranked 116th among 178 nations in Corruption Perceptions Index;

Elbegdorj blasts leaders-people divide and mistrust;

Prosecutor-General proclaims anti-corruption chief as “criminal suspect”;

State Property Committee is “responsible for more than privatization”;

MPs approve their salary raise proposal at first discussion;

About 100 Mongolians spent USD7 million to buy MMC shares at Hong Kong;

Court turns down appeals in two high-profile cases;

Canadian MPs want NAMBC input on cooperation with Mongolia;

Mongolia gets EITI „compliant‟ status;

Rumor halts blood donation, reserves come down;

Government partially lifts ban on animal imports from China;

Mongolian food industry celebrates 80th anniversary;

Government says it had no links with international symposium;

Dundgobi going green;

Dinner in Arlington, Virginia, USA to raise funds for Mongolia Society project.

*Click on titles above to link to articles.

BCM MONTHLY MEETING NOTICE

BCM‘s next monthly meeting for members will be Monday, November 1, 2010 at 5 PM at the KEMPINSKI HOTEL KHAN PALACE, 2ND FLOOR, Altai Ballroom. Parking will be reserved in front of the hotel for BCM Members. The bilingual meeting will feature the following presentations: • Mr. D. Damba, President, MNMA, will provide an update on the mining sector; • Mr. L. Sumati, Director, Sant Maral Foundation, will review the Polit Barometer- October 2010 Survey; • Mrs. Jigjidmaa Dugeree, Local Coordinator of the IFC-funded ―Mongolian Business Inspection Reform Project" will discuss the Investment Climate Program of IFC in Mongolia; • Dr. Battsengel Gotov, Executive Director & Chief Executive Officer, Mongolian Mining Corporation (MMC) will present an ―Overview of MMC‖. We shall conclude the business portion of the meeting by asking BCM members in the audience to briefly comment on specific problems, solutions, risks, opportunities and/or strategies affecting their businesses. BCM members can learn from one another sharing good news and bad. A networking reception will be held for all attendees immediately following the business portion of the meeting in rooms ―Khusvgul‖ and ―Hustai‖, also on the 2nd floor, Kempinski Hotel Khan Palace. At 7 PM, the fortunate 140 of you with reservations for BCM‘s Membership Renewal Dinner should proceed to the Oasis Restaurant on the 1st floor, Kempinski Hotel Khan Palace.

BUSINESS

IVANHOE FILES COUNTER-CLAIMS IN DISPUTE WITH RIO Ivanhoe Mines said on Tuesday it has filed counter-claims against Rio Tinto, in relation to an arbitration process that was launched by the Anglo-Australian miner earlier this year. Vancouver-based Ivanhoe and Rio are developing the nearly USD5 billion Oyu Tolgoi copper-gold project Mongolia. The two companies have been locked in a dispute over a shareholder rights plan adopted by Ivanhoe in May. Rio, which owns roughly 35 percent of Ivanhoe's outstanding shares, alleges that the plan is in breach of its contractual rights. Ivanhoe rejects Rio Tinto's claim. The Canadian exploration company has also counter-claimed that Rio itself breached the terms of their private placement agreement by engaging in activities that could affect the control of Ivanhoe without the company's permission. Earlier this year in a securities filing, Rio said its minority shareholder Chinalco had indicated an interest in acquiring a minority equity stake in Ivanhoe. An independent arbitrator has scheduled hearings on the claim and counter-claim between January 18 and February 5, 2011.

Source: Reuters APPELLATE COURT RULES IN FAVOR OF KHAN RESOURCES Khan Resources Inc. has said a Mongolian appellate court has ruled in its favor regarding its mining license and upheld an administrative court decision, which was contested by the Nuclear Energy

Agency (NEA). In July, the Ulaanbaatar Administrative Court had said notices issued by the NEA meant to invalidate the mining license held by Khan's subsidiary, Central Asian Uranium Co LLC, were illegal and invalid. The NEA has a right to appeal the appellate court ruling within 30 days, Khan said in a statement. Khan, which owns license to explore uranium at Dornod, has been facing trouble from the Mongolian authorities. "We now trust the NEA will move forward with re-registering our licenses under the Mongolian Nuclear Energy Act, or will provide just cause as to why not, all as prescribed by the laws of Mongolia," Chief Executive Grant Edey said in a statement.

Source: Reuters SOUTHGOBI TAKES STAKE IN ASPIRE MINING Shares in Aspire Mining Ltd. rose over 30 percent after an Ivanhoe Mines Group company took a substantial stake in the junior coal explorer. The Perth-based Aspire said on Monday the Ivanhoe-controlled SouthGobi Resources had taken a 19.9 per cent interest in it via a placement of 105.7 million shares, raising AUD20.1 million. Aspire also said the companies, which were focused on Mongolia, had formed a strategic partnership to fast-track development of Aspire's wholly-owned Ovoot coking coal project in the country's north. Aspire is yet to secure offtake partners for the Ovoot project and says only 10 per cent of the area has been explored. Aspire chairman David McSweeney said the deal with SouthGobi Resources would speed up the company's transformation from a coal explorer to a coal mine developer. SouthGobi president and chief executive Alexander Molyneux said Aspire was an exciting strategic partner, given its large volume of potentially high-quality coking coal in Mongolia. Mr. Molyneux said SouthGobi Resources would provide Aspire with in-country expertise. SouthGobi Resources, which is 57 percent held by Canada's Ivanhoe Mines Ltd, produces coal at its Ovoot Tolgoi mine in Mongolia's south. Source: The Sydney Morning Herald

IVANHOE TENSION WILL NOT DELAY OYU TOLGOI, SAYS RIO CEO Rio Tinto chief executive Tom Albanese has said ongoing tensions with Canadian partner Ivanhoe Mines would not hold back the Oyu Tolgoi project which he said could be brought on stream early. Mr. Albanese said in a television interview broadcast on Sunday he hoped to see first production from the mine in 2013, and said both Rio Tinto and Ivanhoe Mines were committed to its rapid development despite their disagreements. "It's very important for Rio Tinto. It's very important for Ivanhoe. It's also very important for Mongolia. It's a first class mine being built on time," Mr. Albanese told the Australian Broadcasting Corporation (ABC) program Inside Business. "I'd like to actually see it get sped up if we can, first production by 2013. It is on track as we speak." Source: The Australian

MOODY‟S ASSIGNS Ba3 RATING TO NOTES AND “NEGATIVE” OUTLOOK TO TDB‟S EMTN PROGRAM Moody's Investors Service has assigned a Ba3 rating to senior unsecured notes drawn under the USD300 million foreign currency Euro Medium Term Note (EMTN) program of the Trade and Development Bank of Mongolia LLC (TDB). The outlook is negative. "The rating and outlook on the senior unsecured notes are the same as the EMTN program's and the bank's current foreign currency issuer ratings. The negative outlook was placed in September, 2009," says Yvonne Zhang, a Moody's Vice President and Senior Analyst. The senior notes represent direct, unconditional, unsecured, and unsubordinated obligations of TDB; and will help diversify the bank's funding sources and support future loan growth. TDB's long-term foreign and local currency debt and issuer ratings are Ba3; its long-term local currency deposit ratings, Ba3; its long-term foreign currency deposit ratings, B2; its short-term ratings, NP; and its bank financial strength rating, D-. The outlook for these ratings is negative, except for the foreign currency deposits rating, which has a stable outlook. Moody's last rating action on TDB was taken on November 12, 2009, when the outlook on its B2 long-term foreign currency deposits rating was changed to stable from negative. TDB reported total assets of approximately USD558 million as of December 2009.

Source: Info-Prod Strategic Business Information

WINSWAY‟S SALE OF MONGOLIAN COAL UP 141% Y-O-Y Winsway‘s sales volume for the nine months ended September 30 increased by 176% compared with

the same period last year. Benefiting from the completion of and improvement to the company‘s cross border facilities and end-to-end integrated service platform, and the increasing demand for imported coking coal from steel mills in China, Winsway‘s unaudited total sales of coking coal in the period reached approximately 6.2 million tons, of which approximately 3.5 million tons were Mongolian coking coal. Its sale increased by 141%.

Source: Winsway ALAMAR RESOURCES ACQUIRES ASSETS IN MONGOLIA Alamar Resources (ASX:ALG) has entered into a conditional agreement to acquire 100% of Mongolian Resource Company, a growth-oriented Mongolia-based diversified resource company engaged in the acquisition, development and operation of resource properties there. The proposed transaction is conditional on a capital raising of not less than USD5 million at USD0.25 per share or not less than 80% of the average market price for shares on the 5 days before lodgment of the prospectus.

Source: Proactive Investors Australia

ERDENES TAVAN TOLGOI IPO LIKELY IN LATE 2011 Mr. L. Enebish, General Director of Erdenes MGL, has says that Erdenes Tavan Tolgoi LLC, which holds the license for the Tavan Tolgoi coal deposit, is expected to have its IPO in late 2011. The Government is likely to offer 30% of the company‘s shares in the IPO. Mongolia Mining Corporation (MMC) recently raised USD651million by selling 20% of its shares, taking the company‘s worth to USD3.2 billion. Erdenes Tavan Tolgoi owns a reserve at least ten times larger than MMC‘s and will sell 30% of its stock, so if the MMC IPO is any indicator, Erdenes Tavan Tolgoi could easily end up the biggest Mongolian company. Source: Business-Mongolia.com

PEPSI-COLA TO BE PRODUCED IN MONGOLIA Following an agreement with PepsiCo International, the second largest food and beverage company in the world, GN Beverages will soon start producing Pepsi, Miranda and 7-Up brands in Mongolia. It has acquired the franchise rights to special recipes for these internationally popular beverages and also the special production techniques that give them their unique flavor. GN Beverages has over 150 employees and its fully automated plant works with the most modern German equipment. The company‘s laboratory uses Japanese technology for tests to ensure quality control. Source: Udriin Sonin

PETROCHINA CAUSED ECOLOGICAL DAMAGE WORTH MNT1 BILLION, PROBE CONCLUDES The law on environmental impact evaluation, passed in 2000 and amended twice since then, calls for the assessment of the effects of any industrial activity and of the financial costs of reclamation every four years. Following complaints from citizens about the ecological damage done by PetroChina Daqing Tamsag in Dornod province, Munkh-Orgil Trade Company was asked to probe the allegations. Its head, Mr. B.Erdenebaatar, has now said they have completed the work and concluded that the ecological damage done by Petro China in the area the company was asked to study amounted to MNT1 billion in monetary terms. The company dug over 300 holes and then linked them, in the process heavily damaging the soil. Source: Undesnii Shuudan

PETROCHINA NET RISES 13% AS OIL DEMAND CLIMBS PetroChina, China's largest publicly traded oil company by capacity, on Wednesday reported third-quarter profit of USD5.21 billion, up 13% from a year earlier. PetroChina's profit for the nine-month period rose 23%. China has driven rising global oil demand, especially since late 2008, when government stimulus spending was channeled into energy-intensive infrastructure projects. In response to strong demand, PetroChina has increased its energy production. For January through September, its crude-oil output rose 1.3% to 639.7 million barrels, while its average selling price for crude jumped 46% to USD71.76 a barrel. The state-controlled oil giant refined 657.4 million tons of crude, up 8.3%.

Source: The Wall Street Journal Asia

NO ACCIDENT AT OYU TOLGOI AFTER 4.5 MILLION MAN HOURS OF WORK With 4,500 people engaged in the construction, the physical face of the Oyu Tolgoi project is changing not from month to month but from day to day. A special feature of the work so far has been the strict implementation of internationally recommended labor safety measures. This has

meant that there has not been a single accident so far in the 4.5 million man hours of work. Source: Udriin Sonin

SOUTHGOBI CONTRACTS LEIGHTON TO BUILD 45-KM PAVED HIGHWAY FROM MINE TO CHINA SouthGobi Resources has awarded a USD48 million contract to Leighton Asia, a division of Australia-based contracting giant Leighton Group, in a joint venture with Monnis International, a leading Mongolian resource, construction and transportation conglomerate to build a paved highway dedicated to the delivery of export shipments from SouthGobi‘s Ovoot Tolgoi coal mine to the Mongolia-China border crossing at Shivee Khuren-Ceke. Work will include the design and construction of the 45-km highway linking the Ovoot Tolgoi coal mine with Ceke, a major coal terminal on the China side of the border with rail connections to key coal markets in China. The coal-hauling highway will be 17 meters wide and will consist of four fully-paved lanes with a one-meter central median in order to provide capacity well in excess of 20 million tons of coal per year. It will be constructed with a concession granted by the Government of Mongolia as per the country‘s recently passed Concession Law. Upon completion, the road will accommodate heavy axle loads of fully loaded coal trucks and set new standards for haul road infrastructure in Mongolia. ―We are very pleased to work with Leighton Asia and Monnis International on this significant infrastructure project in southern Mongolia,‖ said Mr. Alexander Molyneux, President and CEO of SouthGobi. ―The new coal highway will improve safety for coal transporters, will greatly reduce the environmental impacts of the unpaved road – and will facilitate further aggressive growth of our mining business.‖ The new highway is scheduled to be completed by the end of 2012.

Source: SouthGobi Resources

THE VALUE SAGA OF OYU TOLGOI There are many risks in mining; even the risk that unimaginable individual success could become a risk in advancing an asset to productive and useful status. Ivanhoe Mines' NYSE stock price may have multiplied by a factor of more than ten in less than two years, but it seems that it's simply not enough for Robert Friedland, who owns a self-confessed 18.3% stake in the group, currently worth USD2.3 billion. His stake, that is; Ivanhoe as a whole has a market value of USD12.4 billion. This is not a bad gain for Ivanhoe's re-discovery of Oyu Tolgoi in 2001 in the Gobi Desert. The discovery goes back forever: outcropping rocks in the area were smelted for copper some 700 years ago, during the times of Genghis Khan. At the time of rediscovery in 2001, Ivanhoe's stock price was around CAD1.50 a share; it is now trading up around CAD24.00 a share. On 18 October 2010 Ivanhoe was back in the headlines on the announcement that it would be looking to issue fresh common shares to raise USD800 million, and perhaps USD200 million more, further fueling its apparent row with transnational miner Rio Tinto. Oyu Tolgoi is a USD-4.6-billion mine build, currently under way. The saga can be traced to 27 October 2006, when Rio Tinto completed a first private placement with a cash-strapped Ivanhoe. Rio Tinto has reacted to the latest news by, in effect, proclaiming that Ivanhoe has undermined Rio Tinto's claimed first right of refusal, dating to 2006. Ivanhoe seems to counter that the right pertains only to private placings, and not a general rights issue. Read more… In July Rio Tinto announced that it had told Ivanhoe that it's taking to arbitration Ivanhoe's "breaches of the private placement agreement caused" by Ivanhoe's adoption of a shareholders rights plan on 5 April. The arbitration is now expected to be finalized by 5 February 2011. In July Ivanhoe reacted - in part - by declaring that it has "exercised its contractual right and given 60 days‘ advance notice to Rio Tinto of a forthcoming change in the agreement governing Rio Tinto's investment in Ivanhoe Mines". That, in short, meant termination of a covenant that's restricted Ivanhoe's ability to issue shares to "strategic investors". Termination of the covenant meant that Ivanhoe could issue more than 5% of its common shares to one or more third-party strategic investors, "which could include major mining companies". To some observers, this seemed like an odd way of thanking Rio Tinto for so far risking billions of dollars, and making available the skills and institutional memory of a transnational mining group. To date, Rio Tinto, which years ago agreed to the responsibility for developing and operating Oyu Tolgoi, has pushed, via Ivanhoe, significant investment and intellectual capital into developing the mine. On 29 June, a further USD393 million in cash went from Rio Tinto to Ivanhoe. To date, Rio Tinto has invested some USD1.73 billion in Ivanhoe, inclusive of convertible debt, and increased its

ownership in Ivanhoe to 34.9%. On current agreements, Rio Tinto's past and potential future investments in Ivanhoe comprises some USD2.5 billion. Agreements (up to now) state that Rio Tinto's stake in Ivanhoe can increase up to 46.6% by October 2011, when a standstill over Rio Tinto mounting a takeover bid for Ivanhoe expires. As an alternative to the rights issue just announced by Ivanhoe, Rio Tinto, which believes there are "superior financing opportunities available" could exercise early its USD750 million or so warrants. That aside, Ivanhoe's intended rights issue, even if successful, is nowhere near enough to finish the mine build. For months, Ivanhoe has ventured to find non-equity financing for Oyu Tolgoi. Months ago, the group referred to ongoing attempts to finance including apparent buy-ins from the International Finance Corporation, part of the World Bank, and the European Bank for Reconstruction and Development. In June Ivanhoe signed a mandate letter, where the IFC and EBRD may each consider providing a two part finance package, being USD 300 million from each entity in the form of limited-recourse project financing, and a further USD1.2 billion in commercial loans under a "B loan structure". Now Export Development Canada, BNP Paribas and Standard Chartered have been added to the list of potential financiers. A debt package is anticipated to close during the "first half" of 2011. According to recent updates from Ivanhoe, Phase I Oyu Tolgoi, which has been authorized and is under way, would cost an estimated USD4.6 billion. During 2013, production would start building up to an average annual production of some 1.2 billion pounds of copper (about 544,000 tons) and 650,000 ounces of gold, for the first 10 years. Without further equity funding, when the mine starts building up, Oyu Tolgoi's project debt could be in the region of USD3 billion. At that stage, with all the build capital spent, risks would be at something of a peak; Rio Tinto, the major financier, may choose to allow its exposure to remain relatively diversified (Ivanhoe has other interests) and relatively modest, until mine output is proven, debt starts diminishing, and possible dividends loom. Ivanhoe's direct stake in Oyu Tolgoi is at 66%, given the 34% held by the Mongolian government, which has been anything but a silent partner, securing from Ivanhoe the purchase of government bonds and handsome tax pre-payments. Ivanhoe has other interests, including 57% of SouthGobi (full market value: USD2.2 billion), 81% of Ivanhoe Australia (USD1.3 billion), and 50% of Altynalmas Gold, which holds 100% of the Kyzyl gold project in Kazakhstan. Like Oyu Tolgoi, each of these assets needs significant development capital, and, if it comes to that, build capital. For now, Ivanhoe Mines needs friends with big balance sheets, and clout in capital markets. But it seems that one man, who seems to have everything, wants something else as well. Source: Mineweb

CATERPILLAR EARNINGS LEAP Caterpillar Inc.'s third-quarter profit surged 96%, as construction and mining companies replenished their machinery fleets after a reduction in purchases last year. The world's largest manufacturer of bulldozers, excavators, wheel-loaders and other construction equipment, has said that machinery sales rose sharply even in North America and Europe—two regions where construction activity remains weak. Demand from developing economies showed no signs of weakening. Machinery sales in Latin America more than doubled, while sales in Asia rose 81%. The company has been overhauling its production sites this year to boost its manufacturing capacity in China, Brazil and other markets where accelerated infrastructure construction and mine expansions are creating robust demand for machinery. The company now expects 2010 revenue in a range of USD41 billion to USD42 billion, compared with USD39 billion to USD42 billion previously. For the quarter ended September 30, Caterpillar reported a profit of USD792 million, up from USD404 million a year earlier. Revenue rose 53% to USD11.13 billion, rebounding from a 44% decline a year earlier. Source: The Wall Street Journal Asia

ECONOMY RISE IN BUDGET DEFICIT WILL UPSET EVERYTHING, SAYS CENTRAL BANK GOVERNOR The Central Bank Governor, Mr. L.Purevdorj, has said the unexpected decision of Minister of Finance S.Bayartsogt to include social welfare expenditure in the budget is likely to raise budget expenses from MNT3 trillion to about MNT4.4 trillion. The resulting increase in the budget deficit

will have to be met with domestic loans. That could very well mean higher inflation. If the original draft budget is changed, the monetary policy will also have to be changed. A bigger budget deficit will also mean printing more bank notes and the Central Bank does not want this. He said it was essential to coordinate monetary policy and fiscal policy. The monetary policy seeks to tackle problems like inflation that arise from the budget. If the deficit is kept low, as in the original draft budget for 2011, the Central Bank will be in a position to follow a more liberal monetary policy and reduce interest rates. If Government spending is curbed, the private sector can be given easier access to loans. Mr. Purevdorj said they are waiting for the final form of the budget before taking a decision on interest rates so that once taken, it does not have to be changed soon. Asked about the MNT getting stronger, he told journalists the Central Bank is monitoring the movement. ―If there is a sudden strengthening we have to buy foreign currency, but I don‘t think this will happen. The USD rate will stabilize around MNT1300,‖ he said. Source: English.News.mn

STRONGER MNT IS BAD FOR EXPORT, DOMESTIC PRODUCERS Contrary to popular perception, a stronger MNT may not be all good for Mongolia. Ms. G.Delgermaa, Director of the Foreign Currency and Economic Section at the Central Bank, explained to journalists that a rising MNT, as seen in recent days when the market has been volatile, means investment in mining projects would cost less and this would be good. However, Mongolia‘s exports will correspondingly earn less in terms of the MNT, and domestic production will suffer as imports become cheaper. The Central Bank is watching the situation carefully, but it is too early to say if the recent trend of changes in the exchange rate has had any effect on macroeconomic indicators.

Source: Ardiin Erkh

FOREIGN CURRENCY RESERVE LIKELY TO REACH USD2 BILLION BY YEAR-END The Central Bank revealed last week that the country‘s foreign currency reserve has exceeded USD1.8 billion, and is expected to reach USD2 billion before the year ends. The high prices of gold and copper have been behind the increase.

Source: Udriin Sonin

CULTIVATORS START PAYING BACK LOANS This year‘s wheat harvest has been three times more than that in 2007, and has raised hopes that the Russian ban on export of its wheat will not affect Mongolia. Cultivators are happy with the result of their efforts. With an incentive bonus from the Government supplementing their yield sales money, and sales to alcohol and flour companies almost complete, they have begun to pay back the loan taken from the agricultural fund. Source: Undesnii Shuudan

MONGOLIA‟S ECONOMIC RECOVERY GETTING BROAD-BASED, NOTES WORLD BANK In its latest Mongolia Quarterly Economic Update, the World Bank notes that Mongolia‘s impressive recovery from the steep recession of late 2008 and early 2009 is now becoming broad-based. Strong demand for copper and coal from China are fuelling the recovery, and are also helping to substantially improve the external balance. However, price pressures are unlikely to abate in the coming months. The 30 percent wage and pension increase for public sector employees and the cash transfers currently taking place will help to keep demand side inflation pressures strong. Fiscal balances have improved strongly in step with mineral-related revenues. In large part this recovery reflects the support to government revenues from buoyant commodity prices. The bulk of the increase in revenues was accounted for by the Windfall Profits Tax and domestic corporate and indirect tax revenues, reflecting the underlying improvement in the economy and the recovery in commodity prices. However, as fiscal balances improved, pressures to increase spending also mounted. As the elections of 2012 draw closer, spending pressures will amplify even further. Fortunately, Parliament recently passed a Fiscal Stability Law, which forces 2011 revenues to be based on a long-term copper and coal price trend, and starts setting the resulting savings aside in a stabilization fund. The law targets a structural budget deficit (along the lines of Chile‘s structural balance rule) of 4 percent of GDP in 2011, falling to 2 percent by 2013. It also puts a ceiling to debt (at no more than 40 percent of GDP) and restrains expenditure growth to not more than the rate at which the economy is growing. The present session of Parliament is expected to debate and enact a number of important reform

laws, continuing the post-crisis reform agenda. This includes a banking sector capacity strengthening and capital support program which contains, as a last resort tool, a stand-by bank recapitalization facility with proper covenants to protect the public funds. Parliament will also debate a social welfare reform law which would set the stage for the introduction of a targeted means-tested poverty benefit, replacing the formerly universal transfers. Passage of the law is also linked to the last tranches of the budget support operations of the ADB and Japan. Finally, Parliament is also expected to adopt a new Organic Budget Law which will lay out a new process of budget management, including improvements in public investment planning, and fiscal decentralization. For 2011 and 2012, in the run-up to elections, the challenge for Parliament will be to implement and adhere to the landmark laws it will have passed in the wake of the crisis, and to avoid the temptations of unsustainable increases in spending.

Source: World Bank

WORLD BANK SUPPORT FOR GOVERNMENT‟S REFORMS CONTINUES Minister of Finance S. Bayartsogt and Ms. Coralie Gevers, the new Country Manager of the World Bank, Mongolia, have signed a USD30 million Financing Agreement in support of the significant reforms that the Government has been undertaking since it was hit by the economic crisis in 2008. The Second Phase of Development Policy Credit (DPC2), which complements the First Phase financing of USD40 million that was approved in June 2009, aims to support the Government in its continued efforts to sustain the economic recovery and to develop a stable fiscal framework for the future. In particular, the DPC2 supports reforms in four areas: (i) establishing an improved fiscal policy and management; (ii) designing a social protection system that supports the poorest people through economic downturns; (iii) preparing a framework towards a sounder financial sector; and (iv) maintaining an attractive investment climate for mining.

Source: The World Bank, Mongolia

CENTRAL BANK GOVERNOR TELLS MPs WHY INTEREST RATES CANNOT BE REDUCED Several members of the Standing Committee on the Economy were critical of the monetary policy for 2011 when they reviewed it on Tuesday. The mining industry is bringing in foreign currency to Mongolia at a time when the MNT has abruptly become stronger. This is the classic initial sign of the Dutch disease, they said. Large foreign companies have borrowed USD760 million to finance their work in Mongolia, but all of this is from foreign sources. With the Central Bank‘s policy interest rates high, commercial banks cannot charge lower interests and thus cannot service loan demands. Members urged the Central Bank to be bold and to reduce rates. The Bank‘s Governor, Mr. L.Purevdorj, was at the meeting to answer questions. He explained that inflation has to be controlled and kept stable before the Central Bank can reduce policy interest rates. There is also no certainty that even if the Central Bank lowers rates, commercial banks would follow suit. He felt the Government should revise its guarantee of citizens‘ savings with banks as this encourages banks to attract deposits on tempting terms. But the most important thing, he told the MPs, was to keep the budget deficit low, by scrapping the distribution of cash allowances. ―Only when these are done, can the Central Bank reduce its rates,‖ he said. Source: News.mn

BESIDES A LARGE ONE, MONGOLIA PLANS TO HAVE SMALLER OIL REFINERIES Petroleum Authority Chairman D. Amarsaikhan has said that apart from the 44,000-bpd oil refinery to be built in Darkhan by a Japanese company in cooperation with Mongol Seiku at an estimated cost of USD600 million, smaller refineries needing an investment of around USD40 million each are also planned to be constructed in regional centers. Annual consumption in the country is expected to grow from the present 850,000 tons to 1.5 million tons by 2015. The country produced and exported to China about 2 million barrels of crude oil in 2009. This rose 41.1% in the first nine months of 2010. With proven reserves of 119 million tons, Mongolia has enough oil to meet its own needs for at least 30 years, even if no new discovery is made. Source: UB Post

MONGOLIA HAS PRESSURES TO DEFUSE BEFORE FULFILLING ITS PROMISE With nations scouring the globe in pursuit of dwindling mineral supplies, the world's attention has shifted to Mongolia, a country some are heralding as the next resource success story. Among the last places on earth with rich, untapped mineral deposits, this landlocked, underdeveloped country is expected to become one of the world's fastest-growing economies over the next decade -- if, that is, it can address a set of daunting challenges and bring these resources to the market.

According to some estimates, there is about USD1.3 trillion worth of untapped coal, gold, silver, copper, uranium and zinc deposits in what is being called "Minegolia." The country's GDP is expected to rise as much as 10 percent per year, from the current USD5 billion to USD30 billion by 2020, as a result of revenue from these minerals alone. Meanwhile, per capita income is expected to quadruple, from USD3,000 in 2008 to USD12,000 by 2015 -- or about what the average person in Shanghai currently earns. This transformation is already under way. The government is currently in a joint venture with Ivanhoe Mines Ltd. and Rio Tinto PLC to exploit the Oyu Tolgoi mine in the south Gobi Desert. The mine is one of the world's largest underdeveloped copper-gold projects, and could yield up to USD50 billion in revenue when production begins in 2013. Tavan Tolgoi, the world's largest untapped coking coal site, is expected to generate up to 50 million tons of coal per year for 200 years once production is ramped up. And with a relatively open society and a fairly accommodating business environment, Mongolia is also fast becoming a popular investment destination for brands such as Louis Vuitton and Burberry. Companies listed on the Hong Kong Stock Exchange have also acquired almost USD1 billion in Mongolian resource assets through mergers and acquisitions. Yet the country will have to overcome a set of formidable challenges if it is to realize its full resource potential. First, having been historically subjected to Chinese control until the early 20th century, and then under Soviet influence until the end of the Cold War, Mongolia will have to manage relations with its two neighbors deftly while preserving its sovereignty. Relations with Beijing will be an especially tough balancing act. China is the country's top export market, accounting for 64 percent of Mongolia's exports, and increasingly relies on Mongolia for energy. But there are lingering suspicions among Mongolians that the country is becoming overdependent on China. Read more… When the government signed more than 66 percent of the rights to Oyu Tolgoi's deposits over to foreign companies last year, the decision was denounced as a sellout. Some domestic critics remain convinced that these companies are bringing in experienced Chinese miners rather than hiring Mongolians. Similar concerns may also have motivated the government's decision to cancel an equity-stake sale in Tavan Tolgoi to a foreign company in favor of full state ownership. (Chinese coal company Shenhua had been seen as one of the front runners in the bidding.) Ulaanbaatar has also tried to diversify its portfolio by strengthening its relations with other countries as well. Within the last few months alone, it has agreed to supply energy-hungry Japan with rare earths, reached out to Vietnam to exchange development experience, concluded an agreement with Canada to invest more than USD600 million and set up direct charter flights with Taiwan to promote tourism and trade. The leadership must also ensure that the economic benefits derived from these resources are felt by the population at large, even as it confronts the country's myriad development problems. Mongolia ranks 147th in the world in terms of nominal GDP, with a fifth of the population living on less than USD1.25 a day (measured in 2005 purchasing power parity terms). About 30 percent of the population is still nomadic or semi-nomadic. The country's reliance on resources and agriculture makes it vulnerable to price fluctuations and natural disasters, and the combination of a harsh winter in 2009 and the global financial crisis reduced GDP growth last year from 8 percent to 2.7 percent. The government has issued cash handouts but cut child-benefit payments and subsidies for young couples, which has only caused inflation to spike, hitting the poor even harder. Mongolia also faces a massive urbanization crisis, with 40 percent of its population living in the capital alone and that number expected to swell even more in the future. There are also concerns that the government is not adequately balancing economic and environmental imperatives. Decades of poorly regulated urbanization and industrialization have resulted in severe air pollution, overgrazing, deforestation and soil erosion. As a result, according to the United Nations Environment Program, more than 70 percent of Mongolian territory suffers from desertification, while wheat yields are about half those of the 1980s, and several rivers and lakes have begun to dry up. Yet the government has proven unwilling or unable to enforce regulations governing foreign mining companies, and reports of arsenic traces at sites and polluted rivers have begun to surface. Frustrated environmental activists and farmers are increasingly taking the law into their own hands, and there have been six reported mining-related confrontations -- including one death -- so far this year. In the latest incident last month, four activists from the United Movement of Mongolian Rivers and Lakes opened fire on gold-mining equipment belonging to Chinese and Canadian firms, claiming that the companies had violated a law prohibiting exploration or mining at the headwaters of rivers.

The promise of Minegolia is clear, and the pressure for this resource-rich nation of steppes and deserts to develop is mounting. But the government's ability to navigate a dizzying array of geopolitical, development and environmental obstacles to drive the country into a bright economic future is still unproven.

Source: www.summitbusinessmedia.com

LAUGH IF YOU LIKE, BUT MONGOLIA IS A SERIOUS PLAY Some people have been talking up the imminent arrival of Mongolia as a hot new investing destination for years now, usually to hoots of derision. Recently, though, they had not one but three separate confirmations that Mongolia has finally become the newest ―in thing‖ in the fickle world of investing. The first indicator was at an event for a City think-tank called the CSFI. This august institution usually doesn‘t talk much about adventurous investing and certainly not about Mongolia but at a gathering of Big Bears – pessimistic types predicting a coming financial storm – the subject of Mongolia came up. While most of the speakers were rather predictably banging on about gold, one talked about the growing supply issues facing the global resources sector and the fact that Mongolia seems to have most of the easy-access mega projects worth investing in. Crucially, its canny political leadership has no intention of being gobbled up by either the Chinese or the Russians in a resources land grab and is busily playing off each of these superpowers. A couple of days later, another development caught their attention – namely that one of the most successful international stockpickers, James Barstow at Aurora investment trust, has made a big bet on a Mongolian oil play called PetroMatad, which is itself attracting huge attention among the speculative small-cap brigade on the London market. It‘s best to see the Mongolia story as part of a wider regional narrative that includes the Chinese resource-rich provinces of Xinjiang and Inner Mongolia, as well as the state of Mongolia proper. The clincher, though, came with the news that a specialist investment research firm called Eurasia

Capital has launched  . . . wait for it  . . . a Mongolian equity tracking index. The index is still a vulnerable, young waif, comprising an odd mixture of hugely speculative miners and a few financial services groups. But its launch speaks of a new mania gripping the Asian markets. Barely a week goes by without some Hong Kong-based outfit announcing it‘s about to launch a big new Mongolian division. There is talk of aircraft arriving in Ulaanbaatar, crammed full of bankers, mining execs and stock promoters all desperate to come up with the next Big Mongolian Thing. Read more… The fun and games have only just begun when it comes to this landlocked, resource- rich country. Some specific Mongolian funds are certain to emerge that offer investors a more attractive play on this frontier market – at the moment all but a handful of the companies on the Eurasia index are very specific resource exploration companies. The biggest opportunities will be in the broader service economy sector as well as in real estate and infrastructure. But one can predict the multiplier effects of billion-dollar projects will cascade into the small, illiquid local stock market, triggering a massive bubble. Origo‘s chief executive Chris Rynning says: ―It is inevitable that Mongolia will experience bubbles with international investors charging in, creating immediate domestic wealth and rapid asset appreciation.‖ He adds the important caveat that ―a lot of Mongolian companies look very pricey already. I think many of them will struggle to meet their production targets, mainly because of slower-than-expected infrastructure build-out‖.

Source: The Financial Times

NOMADS NO MORE, A STEPPE-LAND STRUGGLES WITH NEW RICHES Mongolians were until recently wont to describe themselves as ―beggars sitting on a huge pile of gold‖. The country has vast but largely untapped mineral deposits. Until recently wages were low and jobs scarce. Shoppers in Ulaanbaatar were not spoilt for choice—unless they were in the market for dried meat, vegetables or furry hats. But with the recent launch of several big mining projects, a transformation looms. It will present the government with a different set of problems; how to manage a promised economic boom without devastating the environment or destabilizing either the economy or the nation‘s fledgling democracy. Few doubt that the boom is coming. The IMF foresees a double-digit annual-growth rate for years to come; and a quadrupling of GDP per head—currently a measly USD2,000—by 2018. Two mines in Mongolia‘s southern Gobi region are expected to provide much of the new wealth. One, called Oyu Tolgoi, which was given the green light last year, will tap an estimated 40 million tons of copper

and also gold. The other is an existing coal mine, Tavan Tolgoi, to which new capacity has been added, including road and rail links to its main customer, China (surprise, surprise). The government will be a big beneficiary of the boom: it owns a third of Oyu Tolgoi (a Canadian firm, Ivanhoe, owns the rest). Yet the country‘s president, Mr. Ts. Elbegdorj, considers it potentially dangerous. ―If we get much more income and much more profit in a bad system with bad governance, I think Mongolia is in trouble,‖ he says. Mongolian politics is already based on patronage, with politicians invariably offering cash and other goodies for votes. Swollen government coffers could exaggerate these bad habits. Corruption could also thrive—as it did in the 1990s, on the back of a hasty privatization of state-owned businesses soon after the country emerged from the Soviet Union‘s shadow and introduced democracy. Indeed, the involvement of many senior officials in mining makes this likely. And even virtuous public spending may push up inflation. Read more… An economy hooked on a handful of commodities is also vulnerable to price shocks. A new fiscal stability law has been adopted, setting indices for commodity prices for budgeting purposes. When prices go above the index, excess revenue will be stored in a ―stability fund‖. If prices fall, the government can tap the fund to cover its costs. Other precautions are being taken. New anti-corruption legislation has been passed. And Mr. Elbegdorj vows to help boost investments in non-mining sectors, including tourism, finance and outsourcing. He says that mining‘s contribution to output should shrink from 70%, its current level, to around 20% within two decades. That sounds unlikely. Yet there is hope that Mongolia‘s current leaders, who are better educated than their predecessors, do at least understand the dilemmas involved in managing the coming riches and the rising expectations they will bring. ―It‘s a question of whether we become Nigeria or Chile,‖ says a senior government adviser, in a country accelerating away from its sleepy nomadic past. Source: The Economist

SINGAPORE EXCHANGE‟S TAKEOVER BID FOR ASX COULD THREATEN HONG KONG EXCHANGE Hong Kong's stock exchange has had a great run. The news from Singapore should be a warning sign that it can't take its good fortune for granted. Singapore Exchange Ltd.'s USD8.2-billion takeover bid for ASX Ltd. is no sure thing. But if it goes through, the result could be a game-changer, creating a new center for trading in Asia with the liquidity to attract major investors and big companies alike. The merger is in part a defensive move in the face of Hong Kong's relentless success. Hong Kong Exchanges & Clearing Ltd., known as HKEx, has attracted the world's biggest initial public offerings this year, and looks on target to finish up 2010 as the world's top exchange for funds raised through IPOs for the second year running. Its listed market value is greater than any other exchange in the world. It has China to thank for that. Hong Kong depends on the mainland as the source for most of its share offerings, including the Agricultural Bank of China Ltd. IPO that made history this past July as the world's biggest ever. Of the USD22.1 billion AgBank raised, USD12 billion was in Hong Kong. China is indirectly bringing listings to Hong Kong as well. Companies from Russia, France and Mongolia that raised cash on the Hong Kong exchange this year did so because of their ability to sell themselves as proxies for China's economic growth. Singapore alone lacks Hong Kong's mainland Chinese hinterland. But a combined Singaporean and Australian exchange—call it SAX—does create a new attraction that could make up for it. Liquidity is one area where this shines through. The two exchanges together accounted for about USD6.7 billion in average daily trading volume last month, within striking distance of the USD9.49 billion that Hong Kong generated. Big investors like liquidity, and so do companies looking to raise funds. You might not attract an AgBank to list on SAX, but one analyst said you might attract a company like pan-Asian life insurer AIA Group Ltd., the Asian arm of American International Group Ltd. that just raised USD17.8 billion on HKEx. An exchange that opened at 9 a.m. in Sydney and closed 11 hours later at 5 p.m. in Singapore would also look fairly attractive compared to Hong Kong's four-hour trading day. Even an effort by HKEx to extend trading to 5½ hours is meeting resistance from traders loath to part with their customary two-hour lunch. Read more… SGX has already been more aggressive than HKEx when it comes to embracing new technologies such as dark pools and high-frequency trading. After an expected upgrade to its systems next year, Hong Kong's latency—the time it takes to executive a trade—will still be about nine milliseconds. By

next year, SGX will offer trading about 100 times faster than that, according to J.P. Morgan. And it has joined forces with Chi-X Group Ltd. to run a dark pool that allows investors to trade large blocks of shares anonymously, even as dark pools have been slow to gain traction in Hong Kong. (HKEx executives say other factors apart from latency, including government duties on trades and minimum trade sizes, make high-frequency trading less appealing in Hong Kong.) HKEx's new chief executive, Charles Li, is pushing innovation on one front, in new products linked to offshore trading of China's currency, the yuan. One of his projects is to create yuan-denominated stock listings in Hong Kong as soon as next year that would capitalize on enthusiasm among global investors for the yuan's long-term prospects. However, demand for the shares, whose value would be determined more by their underlying assets than the currency in which they are traded, remains an unknown. Hong Kong is also trying to attract more resource-related listings by revising its listing rules in ways that allow mining companies to list more easily than in the past. But a SAX that incorporates trading in Australia's many commodity companies would boast a critical mass in resource plays that would make it a go-to exchange for other listings in the sector, depriving Hong Kong of a profitable new source of business. Hong Kong may not be in danger of losing its position as the main entry for foreign stock investors into the China market. But if it isn't careful, a nimbler competitor in Singapore may soon make that position less profitable.

Source: The Wall Street Journal Asia

ASIA NEEDS A MARKET FOR BOURSE OWNERSHIP, BUT THAT‟S A LONG WAY OFF For a brief, happy moment earlier this week it looked like Asian bourses were in for a desperately needed shake-up. Singapore Exchange (SGX) unveiled an USD8.3-billion bid for ASX, operator of Sydney's stock market. Talk inevitably turned to prospects for consolidation elsewhere. Everyone spoke too soon. The SGX-ASX deal already is facing stiff political resistance and mounting skepticism over whether it will go through. Analysts (and journalists) are waking up to the reality that other Asian mergers would face dim prospects, too. Yet rather than merely take that pessimism as a given, it's important to pinpoint exactly why exchange consolidation remains so far off. A wave of exchange mergers should by rights be the big Asian story of the day. The tide is sweeping the West, both domestically (a tie-up between the Chicago Mercantile Exchange and Chicago Board of Trade in the U.S., for instance) and internationally (NYSE and Euronext; Nasdaq and OMX; Deutsche Boerse and International Securities Exchange). True, these mergers have delivered somewhat less than some might have hoped. The dream of creating a single exchange across the Atlantic—where one can start trading shares in, say, a Dutch company at 9 a.m. in Paris and finish 13 hours later at 4 p.m. in New York—has proven elusive. Global bourses still are hostage to local regulators, so the theoretical big pools of capital these mergers have dangled in front of listing companies and traders have turned out to be just as fragmented as before, in practice. But that doesn't mean the exercise is pointless. The merged bourses claim some success trimming costs, although savings are limited by the fixed costs of adhering to local regulations. More significantly, merged bourses are becoming more inventive at generating revenue in a world where online trading platforms of many sorts are biting into their traditional business of offering a venue for trading financial instruments. NYSE Euronext, for instance, is increasing its revenues by selling technology to other, smaller exchanges. Put another way, what is unfolding in the West is not a trend toward consolidation per se, but rather the development of a vibrant market in exchange ownership. This includes Western exchanges that are not consolidating. The London Stock Exchange has remained aloof despite attempts to buy it. So have others, such as the Chicago Board Options Exchange. "I look at it and I say, 'Is it bigness that's the answer, or is it growth that's the answer?'," CEO William Brodsky told Reuters in July. "I'd rather have growth than just bigness for the sake of it." Investors will have ample opportunity to judge whether he and others are right about that. Read more… Not so in Asia, however. As a region that is experiencing massive capital inflows, and has enormous economic growth potential, Asia ought to be the epicenter of innovation and competition among bourses trying to direct capital most efficiently to those who need it. Instead, the region has seen a few half-hearted attempts at "cooperation" among various exchanges and little else. The facile explanation for this is that Asian governments view their stock exchanges as national treasures that cannot be allowed to fall into the hands of foreigners. ASX labors under a regulatory 15% cap on foreign ownership, for instance. Conventional wisdom holds that a foreign takeover

attempt of almost any Asian bourse would die a political death. But NYSE-Euronext faced political challenges, too—Jacques Chirac, for one, thought the Parisian exchange should have merged with the Frankfurt bourse. That deal went ahead. Something more than nationalism is at work in Asia. The real explanation is that many Asian governments still have not made their peace with global capital flows. This is most obvious, surprisingly enough, in those markets that are most developed: Singapore, Australia and Hong Kong. Politicians in Canberra worry that a foreign owner could disadvantage the Sydney market by, perhaps, encouraging more companies to list in Singapore than in Australia. Hong Kong's government believes the territory's exchange is too important to be left in anyone else's hands, and so it retains for itself the right to appoint half the board. The Monetary Authority of Singapore owns nearly 25% of SGX, though it doesn't vote those shares. In effect, policy makers don't trust global capital markets to fund successful companies in a healthy economy (Australia); or to recognize the rule-of-law and other benefits of setting up financial shop in the world's two freest economies (Hong Kong and Singapore). In the face of such distrust, excited talk of bourse consolidation is premature. This governmental reluctance to set exchanges free is a problem that will grow more serious with time. Aside from consolidation, Asian exchanges face critical questions. To rely on China or to diversify efforts to attract IPOs further afield? To compete against or to embrace new electronic platforms and so-called black pools of secretive hedge-fund money? And on and on. A vibrant market for ownership could spur more creative thinking in the face of such challenges.

Source: The Wall Street Journal Asia

IMF CALLS FOR HIGHER ASIAN CURRENCIES Asian countries should allow their currencies to rise and withdraw stimulus measures as they grapple with surging capital inflows that threaten to fuel inflation, the International Monetary Fund said last week. Asia, including Japan, is likely to grow 8% this year, faster than the 7% estimated in April, but the region's economies need to rebalance their growth toward stronger domestic demand, as imports of goods and services by developed nations aren't likely to return to pre-crisis levels anytime soon, the IMF said in its latest Regional Economic Outlook for the Asia-Pacific. "In view of the strong economic expansion that is under way, and emerging signs of inflationary pressure in some economies, Asia has reached the threshold to normalize policy stances across the region," the IMF said in the report. "Greater exchange-rate flexibility will be an important component of policy tightening." Asian nations have been rushing to deal with rapid capital flows as investors shift away from the economic uncertainties of the U.S. and Europe. The shift has shaken currency markets and prompted several Asian nations to intervene to keep their currencies from rising in value. Meanwhile, China—which bears the brunt of global scrutiny over its currency controls—has let the renminbi rise but still faces pressure to let its currency float more freely. Asian countries have comprehensive tools to tackle capital inflows, Mr. Anoop Singh, director of the IMF's Asia and Pacific Department, has said. "The challenge is to channel these inflows beyond the financial market, such as to infrastructure projects.". Read more… The capital inflows haven't gone beyond their peak levels before the 2008 financial crisis and the IMF doesn't expect governments to erect capital controls, Mr. Singh said. Still, further tightening of monetary conditions in Asia may be needed, including increased exchange-rate appreciation, the IMF said in the report. A faster withdrawal of fiscal stimulus would also help guard against the risks of overheating and a buildup of financial imbalances. "Despite the recent tightening, financial conditions generally remain accommodative in many emerging Asian economies compared with before the crisis (especially in China, the Philippines, and Thailand), as the policy easing of 2009 has not been completely unwound, equity valuations remain elevated, and bank credit continues to recover," the report said. The IMF said managing capital inflows is another major policy challenge for Asia, as U.S. monetary conditions are likely to remain supportive for an extended period and global interest rates may stay low. Currencies such as the Australian dollar, Thai baht, Indian rupee and Singapore dollar have racked up substantial gains in the past two months. The Chinese yuan has also appreciated but hasn't kept pace with its regional peers. The IMF said the yuan "remains substantially below the level consistent with medium-term fundamentals," citing China's rapid pace of foreign-exchange reserve accumulation, its large trade surplus and its productivity.

Source: The Wall Street Journal Asia

CHINA SHIFTS ATTITUDE ON GROWTH Signs are building that China's government is retreating from the single-minded focus on high growth that pulled it through the global financial crisis, and is instead emphasizing structural changes that could contribute more to expansion and jobs in the struggling West. China's gross domestic product rose 9.6% from a year earlier in the third quarter, slowing from 10.3% growth in the second quarter, official data issued last week show, as the government withdrew stimulus and took measures to cool sectors such as the property market. How China manages its economy is an issue of global concern, with the nation representing one of the few sources of strong growth. While the recovery produced by the nation's huge stimulus plan has been welcome, many of its trading partners still want to see a change of course. The U.S., for instance, has pushed for freer domestic markets and policies to boost incomes, so Chinese consumers can buy more imported goods. Particularly contentious is China's exchange-rate policy: Many countries complain that China, by intervening to hold down the value of its currency, supports its own exporters to the detriment of others. China's government has repeatedly said it will do more to boost consumer spending and cut its trade surplus, but those pledges haven't been backed up with many concrete changes. There are now signs that such priorities have gotten more backing, as authorities allow the recent boom in heavy industry and investment to cool. Data published last week showed that the rebound in growth, which has been largely driven by state-backed credit and investment, continued to ease in the third quarter of 2010. The expansion in gross domestic product slowed to 9.6%, from 10.3% in the second quarter, as gains in capital spending fell back to levels last seen before the launch of the stimulus program in late 2008. But even before those data were published, authorities had signaled that the ultra easy policies adopted in the crisis years are on their way out. China's central bank raised benchmark interest rates earlier last week for the first time since December 2007. China's currency is now rising at its fastest pace against the dollar since 2008. Read more… The apparent change in course for the world's fastest-growing major economy came just after the ruling Communist Party reached agreement on economic priorities and the political succession in coming years, and many observers see a new approach at work. "We think the government will tolerate a lower rate of growth but will aim to significantly improve the structure of the economy," said Deutsche Bank economist Jun Ma. The interest-rate increase—unusual because it came at a time of slowing growth—"is a very important signal that a policy consensus has been reached," he said. China's top Communist Party leadership closed a high-level conference Monday last week with call for "accelerating the transformation of the nation's economic development pattern" and "putting more emphasis on securing and improving people's livelihood to promote social equality and justice." A communique said those priorities will be inscribed in the nation's next five-year plan, which is now being drafted for publication next year. With the next summit of the Group of 20 major economies just weeks away, China is under increasing international pressure to run its economy in a way that supports recovery elsewhere. And the "transformation" leaders endorsed refers to efforts to make Chinese economic growth less driven by exports to the West and the loan-fueled investment that has been at the center of its stimulus plan. Though China helped lead the world economy out of the worst of the crisis, the government is now dealing with some of the costs of the drive to keep growth high: huge debts of uncertain quality in the state-owned banking system and a bubbly housing market that is fueling urban discontent. Officials hope the consumer spending of a rising middle class will provide a more sustainable source of growth for the future. A consumption-driven Chinese economy would probably grow somewhat slower, analysts say, but be less prone to boom-and-bust cycles and shocks from abroad—a trade-off many see as worth making. "To emphasize domestic demand is a firm policy of the Chinese government, and this is a comprehensive policy from all directions," deputy central bank governor Yi Gang said at the International Monetary Fund's annual meeting earlier this month. He said the government will help drive domestic consumption through supporting urbanization; reducing income inequality; improving social security, health care and education; and boosting infrastructure in rural areas. The leadership's emphasis on structural overhauls over stimulating high growth rates is based on confidence in the economy's prospects, government advisers say. "We're not worried about China's

short-term growth prospects. China has great domestic growth drivers," such as the urbanization of its rural population, said Hu Angang , an economist at Tsinghua University who has advised the government on its five-year plans. But the new direction also recognizes the growing consensus among academic economists that China is unlikely to sustain its recent 10%-plus growth rates as its economy becomes increasingly large and mature. The effects of the financial crisis also continue to weigh on the U.S., Europe and Japan, which means their demand for Chinese exports is unlikely to grow as robustly in the future as in the past. "Based on fundamentals, it seems likely that China's growth rate will ease. Growth in the coming 10 years is probably going to be less than in the previous 10 years," said Louis Kuijs, an economist at the World Bank's Beijing office. "The government could boost investment to offset those fundamental forces, but it's deciding not to do that." The priorities for the next five-year plan that the leadership presented this week will "help us adjust our economic structure at a faster pace, raise the quality and efficiency of economic development, and improve people's livelihood," Sheng Laiyun, spokesman for the National Bureau of Statistics, said Thursday. The next five-year plan will de-emphasize old-style quantitative targets, he said, which will help "dilute" some of the negative impact those have brought in the past. Skeptics note that the latest economic data provide little evidence that China has shifted away from a free-spending stimulus policy. "Strong investment supported by easy money, record exports underpinned by a depreciating yuan, and retail sales that are driven by incentives to spend represents more of the same, not a shift in the growth model," said Tom Orlik, an analyst in Beijing for Stone & McCarthy Research Associates. The slowdown in growth has so far been very modest, with industrial output—an important indicator in China's manufacturing-heavy economy—still up 13.3% from a year earlier in September, after August's 13.9% rise. A sharper deterioration could test how willing the government is to let growth find a natural floor. On the other hand, a pickup in broader inflation—the consumer price index was up 3.6% in September after a 3.5% gain in August—helps the argument for higher interest rates and a stronger currency. Even if the government succeeds in its goal of consumer-driven Chinese economy, there are questions over how much support to the world economy would be delivered even by the most free-spending of Chinese households. "Even in a best-case scenario, however, China will provide only a partial offset to the weaker demand from advanced economies, given the relatively small size of both overall Chinese consumption and Chinese imports of consumer goods," the International Monetary Fund said in its latest assessment of the world economy.

Source: The Wall Street Journal Asia

BRAZIL EYES ROYALTY RATES CHANGE Brazil's government will likely wait at least until the next administration takes office in 2011 before changing a mining law and discussing a possible royalty hike. Both moves could potentially deteriorate the investment climate in Brazil's mining industry. Increased royalties pose a threat to the bottom line of Vale, the world's largest iron ore exporter, and could constrain growth in its iron ore production. President Luiz Inacio Lula da Silva wants to consult the president-elect on the bill designed to heighten competition in the mining sector. That means it is unlikely to be sent this year. Under the proposed law the government would have more discretion in approving new mineral projects in line with its priority of adding more value domestically rather than exporting raw materials. It would also improve regulatory oversight and reduce the time companies had to develop mines to discourage speculation in mineral properties. Under one of the current proposals, companies would be charged a lower royalty if they promoted regional or industrial development or conservation projects. Those companies that provided no "value-added" would be charged the "full rate," but the increase has not yet been defined. An official has insisted the intent was not to impose an excessive burden on companies that already faced high taxes in Brazil. "Nobody wants to kill off Brazil's mining industry; we want to find a reasonable rate," he said. Currently royalties are set at 2 percent for iron ore and 1 percent for gold over net revenues. Industry leaders have warned that higher royalties and tighter regulatory oversight restrictions could act as a disincentive to fresh investments.

Source: www.miningweekly.com

RETHINKING THE LIGHT BULB WITH OLED TECHNOLOGY At the Korea Electronics Show earlier this month, big-name companies like Samsung Electronics Co. and LG Electronics Co. showed off new cellphones with OLED screens. One of their suppliers, Novaled AG of Germany, used its booth to instead show OLED-based lights, including a prototype of a desk lamp made of several cellphone-sized panels put together. Philipp Wellmann, an Asia manager for Novaled, said he expected such products to reach stores in about two years. "We are getting to the stage where design and prototyping is possible," Mr. Wellmann said. The world‘s three major lighting players Royal Philips Electronics NV, Siemens AG's Osram-Sylvania and General Electric Co. are also developing OLED products. They hope it grabs a slice of the roughly USD90 billion annual lighting market, according to research firm Strategies Unlimited. OLED technology uses less energy than incandescent bulbs and, in laboratory use, is nearly as efficient as fluorescent. The color of the light OLED produces is closer to natural light than either of the two dominant bulb technologies. The OLED lights can be both flat and flexible, even placed in glass that is transparent when the light is off. GE's research unit is developing a manufacturing processes for OLED lights in which the organic material is placed on a substrate in a roll-type process similar to the way a newspaper is printed. GE is aiming to reduce manufacturing costs. It also needs to increase OLED lifespans to 5,000 hours per product before it can consider manufacturing in bulk. Read more… OLED stands for organic light emitting diodes and is similar in name to another technology, LED or light emitting diodes, that has revolutionized the lighting industry over the last decade. Both technologies are semiconductors and they follow some of the same manufacturing techniques and falling-cost economics of the computer chip industry. But the two technologies differ in their structure and the type of light they produce. LEDs, which are seen in products ranging from flashlights to giant video billboards, are discrete points of light, or basically very small light bulbs. Looked at directly, they glare. OLED-based lights emit light evenly across a thin panel of glass, producing more diffuse light than an LED does.

Source: The Wall Street Journal Asia

POLITICS MONGOLIA RANKED 116TH AMONG 178 NATIONS IN CORRUPTION PERCEPTIONS INDEX Mongolia has been ranked 116th among 178 countries in the latest Corruption Perceptions Index released by Transparency International on Tuesday. However, at 2.7 its score has remained the same as in 2009. The index reveals that many governments around the globe are strongly affected by corruption. Nearly 75 percent of the 178 countries included scored below 5 on a corruption perception scale of 0-10, with 0 being perceived as highly corrupted to 10 being perceived as having low levels of corruption. Denmark, New Zealand and Singapore tie for first place with scores of 9.3, meaning they were seen as having the least amount of corruption, the organization said. Seen as the most corrupt governments were Afghanistan and Myanmar, both with scores of 1.4, and Somalia, with a score of 1.1.

Source: www.thirdage.com

ELBEGDORJ BLASTS LEADERS-PEOPLE DIVIDE AND MISTRUST Much of President Ts. Elbegdorj‘s long speech at last week‘s ceremony to observe the 20th anniversary of Mongolia‘s adoption of parliamentary democracy was devoted to corruption in Mongolian public life, insensitivity of political leaders to people‘s needs, and their arrogant refusal to be accountable to the electorate. The State apparatus‘s unabashed self-service, instead of serving the people, is getting out of control. Most of what the government produces is reaped by the government itself. Referring to leading politicians‘ claims that they listen to the people, Mr. Elbegdorj read out from a letter he had received from a citizen: ―They listen to what they want to hear, advise what they please to advise and take their own thoughts as the only ultimate truth.‖ The agency to combat corruption has become an agency to comfort corruption and MPs‘ failure to decide on dismissing the Anti-Corruption Authority chief Sangaragchaa even in three months has caused anger and frustration among people and damaged the reputation and honor of the State. Parliament is a bridge of accountability between the people and the Government, but it has been made into a screen, a wall of rock between the two, the President said. He said he has no wish to meddle in government actions, but only wants to fulfill his constitutional

obligations. A country falls apart as much from aggression from outside, as from corruption, red tape and unlawful practices at home. His efforts to cooperate with Parliament and the Government have been met with constant resistance. He still hopes for cooperation and is ―ready to walk in front and hold the fire‖. Asserting that ―there is no civil society without civil participation‖, Mr. Elbegdorj said the euphoria created at ―the return to Ulaanbaatar, thanks to the democratic revolution, of the powers and rights of the Mongolian people that had been kept in Beijing during the Manchu period and in Moscow during communism‖ has evaporated as they ―are now stuck in the pockets of Parliament and the Government‖. He was confident of a bright future for the country and its people. The greatest strength of a society lies in people who believe in themselves, who share common values and interests, who appreciate the essence of a free society and who know their positions in that free society, he said.

Source: The President‘s Office

PROSECUTOR-GENERAL PROCLAIMS ANTI-CORRUPION CHIEF AS “CRIMINAL SUSPECT” Unhappy and frustrated by Parliament‘s failure to act in three months on its request to dismiss the Anti-Corruption Authority (ACA) Chief Ch.Sangaragchaa and his deputy, Mr. D.Sunduisuren, the State Prosecutor-General‘s Office (SPGO) last week took the extraordinary step to proclaim both officials as ―suspects in a criminal case‖. This is expected to put pressure on MPs to resolve the issue, though there is no clarity on what the next step in the saga will be. Asked if MPs are unwilling to be seen as voting against a powerful man like the ACA chief, Parliament Speaker D.Demberel said an MP who took his job seriously should not be afraid of such things. As elected representatives of the people, they should be responsible and do what is best for the nation and according to Constitutional provisions. He felt no matter what Parliament decides on the Prosecutor-General‘s original request to dismiss Mr. Sangaragchaa, following the latest proclamation, an investigation against the ACA head would be started in the legal framework. Mr. B.Bat-Erdene, MPRP MP and Chief of the Standing Committee on Justice, which is perceived as being behind the delay and which has insisted on secret voting on the issue, said he did not know why the SPGO took this present step. A full session of Parliament was to discuss the issue last week but could not do so as the Prosecutor-General was outside the country, he said. Source: English.News.mn

STATE PROPERTY COMMITTEE IS “RESPONSIBLE FOR MORE THAN PRIVATIZATION” Established in the days of the transition to a market economy, the State Property Committee (SPC) has outlived its utility in the eyes of many who want it disbanded before it becomes totally irrelevant and an anachronism. Others feel its role should change, and it can be made responsible for arranging public-private partnership under the Concession Law. Its Deputy Chief, Mr. O.Erdenebulgan, however, has dismissed all such suggestions and said it has too much on its plate. ―Privatization of state property is not our only responsibility,‖ he has said and added, without going into details, ―We have other work, too, and they are increasing.‖ Regarding selecting a team to restructure and run the Mongolian Stock Exchange (MSE), he said the bids of the South Korean Stock Exchange and a joint consortium of NASDAQ and MOSDAQ had to be rejected as these ―did not meet our criteria‖. There are ―some favorable points in the London Stock Exchange proposal, so we are talking with them‖. A team from there is studying MSE operations. Mr. Erdenebulgan told media the SPC has considerable achievements in strengthening corporate governance. All state-owned economic entities now publish their financial details and accounts on the website. Their planned purchases and expenses are also announced in advance. Some state-owned companies have 1-3 independent members from civil organizations on their representative managing councils. The SPC selects them in order to ensure openness.

Source: Ardiin Erkh

MPs APPROVE THEIR SALARY RAISE PROPOSAL AT FIRST DISCUSSION With 84.1% of MPs present supporting it, the proposed salary raise of State high officials, including MPs, was approved at its first discussion in Parliament last week. The Standing Committee on State Structure had earlier unanimously agreed that the voting at the first discussion would be enough for the proposal to become law. The salary of judges, prosecutors and officials of the Anti-Corruption Authority will also increase.

Source: News.mn ABOUT 100 MONGOLIANS SPENT USD7 MILLION TO BUY MMC SHARES AT HONG KONG

Mr. D.Achit-Erdene, President of the Mongolian International Capital Corporation (MICC), which acted as a broker at the Mongolian Mining Corporation (MMC) IPO, says 1% of the shares on offer had been kept for Mongolian citizens. ―We were surprised by the strength of the demand. The 1% meant USD7 million, which is quite a large figure, but we received enough orders to stop booking after two days,‖ he said. ―We then submitted fresh applications to the secondary market.‖ His rough guess is that about 100 Mongolians bought MMC shares at the IPO. Source: Ardiin Erkh

COURT TURNS DOWN APPEALS IN TWO HIGH-PROFILE CASES The Ulaanbaatar High Court last week heard appeals in two high-profile cases and in both cases upheld the sentence passed by a lower court. Ts.Jargalsaikhan, former advisor of the Foreign Relationship Department in the Parliament Office, had been sentenced to 17 years‘ rigorous imprisonment for treason and passing state secrets. The Central Intelligence Service charged him with sending to his contacts in China by e-mail information about the Russian Parliament Speaker‘s official visit to Mongolia. In the other case, former State-Secretary of the Ministry of Industry and Trade, D.Surenkhor, had been sentenced to four years of simple imprisonment for embezzling or otherwise causing the state a loss of altogether MNT91.3 million. Source: English.News.mn

CANADIAN MPs WANT NAMBC INPUT ON COOPERATION WITH MONGOLIA The Canadian House of Commons Standing Committee on Foreign Affairs and International Development has asked Mr. Steve Saunders, President of The North America-Mongolia Business Council (NAMBC), to meet with them to discuss cooperation between the Canadian Public Service Commission and the Mongolian Civil Service Council, as outlined in the MoU signed during Prime Minister S. Batbold‘s visit to Ottawa last month.

Source: NAMBC

MONGOLIA GETS EITI „COMPLIANT‟ STATUS Mongolia and Ghana have received ―compliant‖ status from the Extractive Industries Transparency Initiative, a corporate, civil society and government-composed group devoted to increasing financial disclosures in the oil, gas and mining industries. The group requires an independent assessment of a country‘s disclosure and reporting practices in order to become a compliant state. Mr. Peter Eigen, chair of EITI, said in a statement, ―Since committing to the EITI in 2005, Mongolia has published payments from its extractive sector in three excellent EITI Reports…This allows all stakeholders in Mongolia to monitor one of the most important sources of government revenue, and to monitor an industry that is transforming Mongolia‘s economy.‖

Source: The Wall Street Journal blogs

RUMOR HALTS BLOOD DONATION, RESERVES COME DOWN Blood donation has almost stopped since rumors circulated that 14 patients received transfusion of blood from a HIV-infected donor. The Ministry of Health and officials of related organizations have denied any truth in the rumor, insisting that the infection was detected before the blood could be used, but donors have chosen to stay away. The National Center for Blood Analysis (NCBA) has had only 4 or 5 blood donors on any day last week in place of the usual 100. The result is that the blood reserve has now come down to meet three days‘ average demand. Medical officials said registered donors are not responding to their request to come and give blood.

Source: Ardiin Erkh

GOVERNMENT PARTIALLY LIFTS BAN ON ANIMAL IMPORTS FROM CHINA The Government has lifted its comprehensive ban on import of breeding animals and fully processed products of animal origin from China. The only restrictions now remaining are that the proposed imports must be from areas certified to be free of any infectious disease in animals, that they should come only through specified ports and only by assigned vehicles. The ban on import from China of all kinds of birds, non-breeding ungulates, any raw material of animal, and unprocessed and semi-processed products continues to be in force.

Source: Undesnii Shuudan

MONGOLIAN FOOD INDUSTRY CELEBRATES 80TH ANNIVERSARY

The Ministry of Commerce and Industry was established in 1930 and food industries were brought under it. This was a significant decision that helped develop a national food industry in Mongolia, following a consolidated policy. The Mongolian Food Association has ambitious plans to mark the 80th anniversary of this momentous event, in cooperation with the Ministry of Food, Agriculture, and Light Industry. There will be a forum where representatives of the General Customs Office, the Standardization Agency, and the Unfair Competition Regulatory Agency will join producers to discuss ways of improving the supply system of raw materials. An open day was held in June in cooperation with the City Mayor‘s Office, the Ministry of Social Welfare and Labor, to show people how the food processing industry operated. Several other events have been, or will be, organized in the provinces as also for specialized sections of the industry.

Source: Udriin Sonin

GOVERNMENT SAYS IT HAD NO LINKS WITH INTERNATIONAL SYMPOSIUM The Mongolian Government has in a statement dissociated itself from the recent two-day international symposium on the 1913 Treaty between Mongolia and Tibet that was organized in Ulaanbaatar by the editorial board of the journal Independence of the National Intelligence Academy of Mongolia. The Government has said it was not involved in any way with the symposium, nor does it have any position on the issue it discussed. The symposium was attended by 27 experts from Mongolia, India, the USA, South Korea, Russia, Canada, Taiwan, Japan, Holland and Germany, who presented papers on a Treaty of Friendship and Alliance signed in 1913 between Mongolia and Tibet. Most of them argued that the treaty was a valid document according to international law and was accepted as such by most countries, thus asserting the sovereignty of both signatories.

Source: Tibet.net

DUNDGOBI GOING GREEN The governor of Dundgobi province, Dr. D.Chandmani, has said that effective implementation of several projects so far, and with work expected to begin shortly on several more, the ―greening‖ of the area is no longer a dream. Thousands of trees are growing well in Mandalgobi town, keeping desertification at bay. The Central Bank and Saving Bank have joined NGOs, schools and others in the work. More trees will be planted but the next phase of the work will see the introduction of seabuckthorn. A children‘s park is now under construction and it will have trees and gardens. The town‘s central park will also get coniferous and decorative trees. Scientists in the Institute of National Development are preparing a long-term policy for the development of the province, Dr. Chandmani said.

Source: Zuunii Medee

DINNER IN ARLINGTON, VIRGINIA, USA TO RAISE FUNDS FOR MONGOLIA SOCIETY PROJECT The Mongolia Society and the Young Mongolian Professionals Association (YMPA) are holding a fundraiser roundtable with dinner and entertainment on November 11 in Arlington, Virginia, USA. Proceeds will support the Mongolia Society‘s project to publish new books on Mongolian history and culture and YMPA‘s creation of a nationwide database of young Mongolian professionals working in the US. The theme of the evening‘s roundtable is ―US-Mongolian People to People Relations—Growing our Ties.‖ Panelists include Mrs. Ann La Porta, wife of the former US Ambassador to Mongolia, Mr. Jeffrey Davidson of Rio Tinto, Ms. Sas Carey of Vermont‘s Nomadicare, Mr. Dan Plumley of the Massachusetts-based Totem Project for Mongolia‘s reindeer people, and Mrs. Dash Nyamsuren from the Mongolian School of the National Capital Area.

Source: NAMBC

ANNOUNCEMENTS

MONGOLIA INVESTMENT SUMMIT, NOVEMBER 23-25, LONDON The Mongolia Investment Summit on 23-25 November in London will be bringing together companies operating in Mongolia with the Mongolian government to discuss the opportunities and challenges surrounding investing in this frontier economy. Those registering before 5 November will save up to £135. Delegates will: • Learn the best entry strategies into Mongolia

• Access partnership and investment opportunities • Gain first hand insights into regulations and policies affecting foreign investment • Understand how frontier market investment can work for you • Get a clear picture of how the government is working to improve Mongolia's business environment. Among the speakers will be: • Andrew Harding, Chief Executive, Copper, Rio Tinto on the importance of emerging markets in meeting global commodity demands. • Robert Friedland, Executive Chairman, Ivanhoe Mines on how they worked with the Mongolian government to come to an agreement on the Oyu Tolgoi mine, and how the mine will be developed. • Kevin Bortz, Director, Natural Resources, EBRD about Mongolia's economic outlook and what remaining reforms need to be made. • G. Tsogtsaikhan, Director, MonAtom LLC about where the opportunities for Mongolia's uranium mining are found. • T. Amarzul, Executive Director, Petro Matad LLC on the development of Mongolia's petroleum resources, and why they chose to list with LSE AIM. • Daniel Broby, Chief Investment Officer, Silk Invest about their appetite for Mongolian investment, what type of projects they are seeking and what restrictions and risk perceptions they have. More information can be had at www.terrapinn.com/mongolia. ___________________________________________ “BSPOT" on B-TV BTV (Business TV) now telecasts a 10-minute English-language news program called BSPOT every evening from Monday to Friday at 21:30, taking most of the stories from the BCM NewsWire. ___________________________________________ “MM TODAY” on MNB-TV BCM is pleased to announce that Mongolian National Broadcasting continues its cooperation with BCM on ―MM Today‖. This English news program is aired every Friday for 10 minutes and is scheduled for 21:15 tonight. Tune in to watch this program that reports stories from today‘s BCM NewsWire. ___________________________________________ NEW POSTINGS ON BCM WEBSITE'S 'PRESENTATIONS' AND 'MONGOLIAN BUSINESS NEWS' The speaker presentations which were presented at the Mining Investment Summit 2010 in Hong Kong, October 14, 2010, are now posted on BCM's website (www.bcmongolia.org) in the "Resource, Presentations " section for your review. There are 17 presentations made by Mongolian and foreign officials to the more than 200 attendees at the highly successful conference. We are now posting some news stories and analyses relevant to Mongolia on the BCM website's ‗Mongolian Business News‘ as they come, instead of waiting until Friday to put them all together in the weekly NewsWire. The NewsWire will, however, continue to be issued on Friday, and will incorporate items that are already on the home page, so that it presents a consolidated account of the week‘s events.

SPONSORS

ECONOMIC INDICATORS

INFLATION Year 2006 6.0% [source: National Statistical Office of Mongolia (NSOM)]

Year 2007 *15.1% [source: NSOM]

Year 2008 *22.1% [source: NSOM]

Year 2009 *4.2% [source: NSOM]

September 30, 2010 *10.6% [source: NSOM]

*Year-over-year (y-o-y)

CENTRAL BANK POLICY LOAN RATE December 31, 2008 9.75% [source: IMF]

March 11, 2009 14.00% [source: IMF]

May 12, 2009 12.75% [source: IMF]

June 12, 2009 11.50% [source: IMF]

September 30, 2009 10.00% [source: IMF]

May 12, 2010 11.00% [source: IMF]

CURRENCY RATES – October 28, 2010 Currency name Currency Rate US dollars USD 1,286.52

Euro EUR 1,775.91

Japanese yen JPY 15.69

British pound GBP 2,029.49

Hong Kong dollar HKD 165.82

Chinese yuan CNY 192.49

Russian ruble RUB 42.05

South Korean won KRW 1.14

Disclaimer: Except for reporting on BCM‘s activities, all information in the BCM NewsWire is selected from various news sources. Opinions are those of the respective news sources.