HIMALAYAN NEWS SERVICE
KATHMANDU: Bullion traders have blamed the procedure which requires
a recommendation for traders to buy gold for discouraging them to purchase the yellow metal from banks.
Issuing a press release, Nepal Gold and Silver Dealers’ Association (Negosida), has refuted that they have intentionally stopped purchasing gold from the commercial banks in the last couple of weeks causing the banks to be piled with
“The process of obtaining a recommendation from respective associations to purchase gold from banks is troublesome and needs to be made more efficient,” said general secretary of Negosida Manik Ratna Shakya.
Moreover, this period being an off-season for gold jewellery, demand has been down and in a month or so demand will pick up due to the wedding season, so banks do not need to worry about their gold stock, Shakya added.
About 15 days back, Nepal Rastra Bank had reinstated the provision which requires a written recommendation from associations dealing in gold such as Nepal Gold and Silver Dealers’ Association, Nepal Gems and Jewellers Association (Negja), Nepal Gold and Silver Artist Association (Negosaa) and Federation of Handicrafts Association of Nepal (FHAN) to buy gold from commercial banks.
The same circular had also fixed the commission of gold importers and traders at 0.50 per cent of the value.
Due to the appreciating dollar against the Nepali rupee, the price of the yellow metal is still soaring at Rs 55,200 per tola (11.664 grams) despite the cool down in the international bullion market.