The Mongolian Central Bank has launched a plan to last for six months that aims at promoting the sale of gold by gold miners and individuals to banks. Gold purchase at the Central Bank has declined sharply since the beginning of this year due to instability in the domestic tax environment.  So, the bank decided to again launch a campaign called ‘National Gold to the Fund of Treasures’ to increase its reserve. During the six-month campaign, the bank is planning to organise activities directed at encouraging gold miners and individuals to sell their gold.

The Mongolian Central Bank purchased only 12.7 tons of gold in 2014. Thanks to the low royalty taxes on gold with the 2014 amendments, the bank’s annual gold purchase almost doubled to 22 tons in 2018. The 2.5-percent of discounted royalty on gold mining ended on 1 January, 2019.  Since then, 5 to 10 percent royalty taxes on gold mining have been imposed on miners. As a result, the Central Bank purchased only 772.1 kg of gold from legal entities and individuals in the first three months of this year – down 71.6 percent year on year.