Mongol Bank, or the Bank of Mongolia (BoM), purchased a total of 22 tons of gold from legal entities and individuals in 2018 – up 9.5 percent on the previous year. This means that the bank almost reached its goal. The BoM had set a target to increase its gold purchases by at least 10 percent in 2018. In June, it launched a five-month campaign aimed at increasing national gold reserves under the “Gold-2” nationwide programme.  The bank bought 20.01 tons of gold in 2017.

The bank attributed the growth to a five-month campaign called “National Gold to the Fund of Treasures,” as well as the establishment of two precious metal testing laboratories respectively in the northern province of Darkhan-Uul and the southwestern province of Bayankhongor.

In the past, the major obstacle for individuals selling gold to the government was high transaction fees. Submissions rose significantly after fees were dropped from 68 percent to 2.5 percent. However, this special concession period ended in December 2018.

Mongolia is heavily reliant on the mining sector, with mining accounting for 20% of the country’s GDP, according to the World Bank. Providing incentives for miners could potentially raise economic security.