In an essay posted today by the Official Monetary and Financial Institutions Forum, two officials of Mongolia's central bank report that the bank considers gold to be international money, is managing its gold reserves separately from the rest of its foreign exchange reserves, and admit that the bank is working with other central banks and London Bullion Market Association banks to help manage the gold price.
The officials, bank reserve managers Tuvshingerel Tumenbayar and Azjargal Amarsaikhan, write: "Our trading team closely monitors key macroeconomic and financial market indicators that reflect international policy developments and associated risks. Additionally, we focus on enhancing our capacity to manage gold in both allocated and unallocated forms, working in collaboration with the London Bullion Market Association, clearing banks, and central banks."
Of course, "unallocated" gold is metal that, in the hands of central banks and their bullion bank agents, tends not to exist and is used to deceive markets into thinking that supply is much greater than it is and that higher prices aren't warranted.
Tumenbayar and Amarsaikhan conclude: "The Bank of Mongolia is strengthening its commitment to responsible gold reserve management, promoting economic stability, and ensuring that Mongolia's gold reserves meet the highest global standards for quality, ethics, and transparency."
As the bank may discover eventually, if it doesn't already know, those "global standards" for gold are not really very high in regard to ethics and transparency. Maybe the bank can do better over time.
The essay by Tumenbayar and Amarsaikhan is headlined "Gold is Mongolia's Natural Reserve Strategy" and is posted at OMFIF here:
https://www.omfif.org/2025/07/gold-is-mongolias-natural-reserve-strategy/
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