The Central Bank of Mongolia (Mongol Bank) reported today (5 August) that it had purchased a total of 11.3 tonnes of gold in the first seven months of this year. Purchasing gold is one of the key tools for the Bank of Mongolia to ensure the country’s economic stability by consistently increasing foreign currency reserves, the central bank said in a statement.

Mongolia’s foreign exchange reserves stood at 3.6 billion U.S. dollars at the end of the first half of this year, enough to cover imports for nine months.

Central banks across the world typically hold gold as part of their foreign exchange reserves because of its historic long-term returns and high liquidity. Gold has topped USD 2,000 (£1,527) an ounce for the first time as traders look for havens amid the pandemic. Investors have moved cash into the precious metal as Covid-19 cases rise in the US and more money is pumped into the global economy.