Mongolian governor defends free capital accounts

Mongolia Stock Exchange

The Governor of the Bank of Mongolia, Naidansuren Zoljargal, urged countries not to give up on liberalised capital accounts in the face of financial contagion and volatile capital flows.

Speaking at a meeting of the South East Asian Central Banks (SEACEN) board of governors, Zoljargal said liberalisation can, and has, resulted in macroeconomic and financial challenges, but it is also capable of enriching a country's welfare.

Rather than ‘de-liberalise', politicians, economists and regulators shoul