ULAN BATOR, April 14 (Xinhua) -- Mongolia's central bank plans to purchase at least 24 tons of gold in 2022 to increase the country's foreign exchange reserves, local media reported on Thursday, citing the Bank of Mongolia.

"Buying that much gold would increase the forex reserves by at least 1.2 billion U.S. dollars," the Bank of Mongolia said.

This week, the Asian country's forex reserves fell to 3.3 billion dollars, down 1.2 billion dollars from the end of 2021.

The decline in forex reserves is the result of the country's imports exceeding exports and the ongoing conflict between Russia and Ukraine, according to the central bank.

The bank purchased 20.9 tons of the precious metal last year and 2.4 tons in the first quarter of this year.

Central banks typically hold gold as part of their foreign exchange reserves because of its long-term historical returns and high liquidity.