The Bank of Mongolia purchased 7.1 tons of gold from legal entities and individuals in the first half of 2018 – up 6.0 percent year-on-year.
As of June, the average gold purchase price was 100.042 tugrik (40.66 U.S. dollars) per gram, which corresponds to a low rate on the London Metal Exchange, according to experts from the Mongolian central bank. However, it is expected to increase with the start of the peak of the gold mining season in August, September and October.
Local gold producers in cooperation with the government have moved to enrich the treasury fund and improve foreign exchange rates over the past five years. Gold miners provided 20.01 tons of gold to the central bank in 2017, worth of over 800 million dollars.
The central bank launched a five-month campaign ‘National Gold to the Fund of Treasures’ beginning last month. Mongolia’s annual gold production has remained below 21 tons since 2005 when it reached its record high at 25 tons.