The Mongolian Banking Association (MBA) presented a review of the banking sector’s performance for the first half of 2026, noting a 25% increase in domestic currency savings, reaching 28.2 trillion Mongolian Tugrik. Citizens are increasingly preferring time deposits, indicating growing confidence in the Tugrik, bolstered by positive real interest rates. However, concerns remain that continued inflation could erode these gains and potentially lead to dollarization. The government is considering removing dollar-denominated deposits from deposit insurance to mitigate this risk. The five largest banks control over 80% of assets, with Khan Bank and Golomt Bank experiencing asset growth of 31-33%. Mongolia’s economy grew by 7.7% in the second quarter of 2026, largely driven by a 3.9% contribution from the mining sector and related logistics, with the agricultural sector also showing signs of recovery. Despite a 58% increase in exports and a trade surplus of $4.3 billion, a decline in foreign investment led to a $126 million deficit in the financial account.