The Central Bank of Mongolia (Mongol Bank) said on Friday that it had purchased 12.2 tonnes of gold from legal entities and individuals in the first eight months of this year, including 2.8 tonnes in August. The bank is aiming to increase gold purchases to 22 tonnes in 2018 and to raise reserve of foreign currency to USD 700 million from gold purchases.

The bank’s gold purchase is high due gold taxes decreased to 2.5 percent under ‘Gold’ programme. However, low royalty taxes on gold are about to expire on 2019. In 2010, the bank’s gold purchase was low to two tonnes in a year due to high taxes.