Ban on gold import hits transaction
KATHMANDU: The ban on gold import since January 15 has left the market with no gold supply for 20 days and transaction has fallen to 50 per cent of the total requirement here.
Gold yesterday got traded for Rs 32,800 per tola — Rs 1500 more than it should have been according to the international price. Gold last week closed at Rs 31,650 per tola — higher than the international market price that was $1084 per ounce.
Nepal Gold and Silver Dealers’ Association president Tej Ratna Shakya said, “A series of meetings between the ministry and authorised bodies has taken place but there is no confirmation yet regarding the lifting of the ban on import of gold.”
According to Shakya, there is a demand for 15 kilos of gold per day but NEGOSIDA is able to provide only half of it.
“ The step taken by the government is praiseworthy but
it should also consider the
daily demand in the market,” said Shakya adding that
they have urged the government for a control mechanism so that there is no shortage in the domestic market.
Nepal Rastra Bank (NRB) recently introduced new measures in importing gold. The decision was taken to reduce the import of gold so that the nation will not have to face shortage of dollar.
According to the Department of Commerce, the ban
on gold import is to check
and make necessary investigation regarding gold import to Nepal. Till mid-January, the total gold import was 12,635 kilos
Ten tonnes of gold were
imported during the first
five months of the present
fiscal year — mid-July to
Previously, godl import used to be around six tonnes
annually in the domestic market. That has now increased to 10 tonnes in just five months, valued at Rs 25 billion. Last year, the total gold import was worth Rs 35 billion.
As per NRB data, gold worth around Rs 60 billion is likely
to be imported this year.
Nepali financial institutions imported gold worth Rs 15 billion in the first quarter of the fiscal year 2009-10.