Mongol Bank sees foreign currency reserve rising

Mongol Bank officials have said that a part of its foreign currency reserve is always in the form of gold. A decision to buy more gold, or to dispose of the stock, is taken on the basis of the movement in the global price of gold, but the bank takes long-term projections. Increased export earnings from other mineral resources have also contributed to the foreign currency reserve. Less gold accrues to the Central Bank as long as the 68% windfall profit tax is in force, but this is expected to change as the tax is repealed from January 1 next, and gold reserves are likely to increase.