ONE-WEEK BILLS AND STOCK EXCHANGE NEWS FOR JANUARY 9

Ulaanbaatar /MONTSAME/ The Bank of Mongolia issued Wednesday one-week bills worth MNT 438.9 billion at a weighted interest rate of 13.25 per cent per annum. The one-week CBBs, a main monetary policy instrument of BoM, plays an important role in managing the reserves of the banks. This CBB rate represents BoM's policy rate guides interbank money market. In July 2007, the CBB with stable rate and unlimited bidding was introduced with auctions to be held on every Wednesday. This had attracted the banks' interests providing the possibility for the banks to place their excess reserve in short term asset. There has been a substantial change in the way banks manage their reserves since then. For the favorable adjustment of CBB rate and loan principle along with the well balance of togrog and foreign exchange, 1-week CBB has been held in a type of competing by rate since May 2005. The auction average rate is the targeted rate variables in +/-2 percent from the policy rate and it frames to make the interbank rate as the operational target in midterm. The same day, a total of 68 thousand and 060 shares of 19 JSCs were traded costing MNT 23 million 276 thousand and 096. Rates of eight shares increased, three shares decreased and eight shares were stable. The total market capitalization was set at MNT one trillion 836 billion 172 million 734 thousand and 575. The Index of Top-20 was 18145.20 units increasing 158.32 units against the previous day. B.Khuder