Ban on gold off, but import yet to resume

KATHMANDU: The import of gold has yet to resume even though the government lifted the ban a week ago. According to Nepal Gold and Silver Dealers’ Association (NEGOSIDA) president Tej Ratna Shakya, import has yet to resume in the market even after the government

lifted the ban on import of gold last Friday.

Although Nepal Rastra Bank (NRB) resumed the import of gold on April 2, traders here expressed their dissatisfaction over the NRB’s decision to place a ceiling on the import of up to 10 kg gold per day at the recommendation of Nepal Bankers’ Association (NBA).

The association has claimed that the NRB decision is not practical and has urged the government to withdraw the decision to avert the shortage of gold, which it said could adversely affect fair trade in the local market.

The association has urged to import at least 20 to 25 kg of gold per day.

According to Shakya, NEGOSIDA should be permitted to recommend private

parties to import gold. “NBA

itself is in a dilemma in this

regard,” he said, adding that the government is incurring losses in revenue due to the lack of import. Shakya further said that the slackness in import has triggered an illegal trade in gold.

The ban on gold import came as the government feared dollar deficit due to excessive gold import.

Gold this week opened at

Rs 27,780 per 10 gram on

Sunday and hovered around same price on Monday. Gold was traded for Rs 27, 650

on Tuesday and Wednesday. Meanwhile, along with the

increase in gold price in the

international market, gold price in the domestic market increased to Rs 27,865 per

10 gram and closed with

another increase in the price that is at Rs 28,035 per 10 gram on Friday, states NEGOSIDA. Gold on Friday was traded

for $ 1,157 per ounce in the

international market.

Meanwhile, silver this week opened at Rs 437 per 10 gram and later increased to Rs 441.50 on Monday.

Along with gold, traders here have urged to impose a cap on silver import too.

Gold and Silver dealers

here have suggested that

NRB hike the customs duty on silver to avoid the excessive import of silver.

Customs duty on silver in

India is Rs 1,500 per kilogramme, while duty on

the same in Nepal is Rs 300

per kilogramme.

The per day consumption of silver in the local market is about 100 kilos. Total amount of silver imported since mid-January is about 13,000 kg.