Gold import plunges by 93 percent
KATHMANDU, MAY 01 -
Nepal’s gold import has declined by a whopping 93 percent. The Nepal Rastra Bank (NRB)’s latest macroeconomic report shows that Nepal imported gold worth Rs 2.62 billion in the first eight months of current fiscal year, whereas the figure during the same period last year stood at Rs 37.46 billion.
The massive decline in gold import, according to bullion traders, is due to quantitative restriction on import that the government has enforced since last year. The import had touched an all time high in the last fiscal year when Nepal imported gold worth Rs 41.63 billion, an increment of 151.24 percent.
Such was the surge in the import that the government was forced to increase the import duty on gold and impose a ceiling on sales. The dramatic rise in the import of the precious yellow metal last year was one of the major reasons behind the huge Balance of Payment (BoP) deficit that the country experienced in FY 2009-10.
The government currently allows only commercial banks to import 15 kg of gold per day. Normally, the domestic market consumes 30-35 kg of gold per day, but with the soaring price, the demand has come down by 50 percent, according to traders.
The price of the metal has increased by over 30 percent compared to last year. In the domestic market, the prices of gold and silver set an all time high on Friday because of soaring investors’ preference for the metals. On Friday, the precious yellow metal touched Rs 42,451 per tola (11.664 gm) mark, while silver price stood at Rs 1,350 per tola. Gold, which was traded at Rs 36,095 per 10 gm on Sunday, increased by Rs 300 per 10 gm on Friday. On Tuesday, the price slumped to Rs 35,795, the lowest mark over the week. The price of silver also settled at Rs 1,157.50 per 10 gm after tumbling to the week’s lowest of Rs 1,097 per 10 gm on Wednesday. On Sunday, silver was traded at Rs 1,140 per 10 gm.
According to Manik Ratna Shakya, general secretary of Nepal Gold and Silver Dealers’ Association (Negosida), weak US dollar in the international currency market stimulated the demand for gold and silver for investment options. “Recently, US dollar touched the 11-month lowest mark against Euro.
Therefore, investors in the international market are shifting towards gold and silver for investment,” said Shakya. “Weak dollar coupled with the political turmoil in the middle-east and Japan disaster is fuelling the demand for gold and silver.”
Comparatively, the demand for silver is high in international market due to the ongoing process of Japan’s recovery. “The price of silver since last Janaury surged by almost 70 percent, while the price of gold increased by just 30 percent,” said Shakya, adding that the silver price might rise further.
In the international market, the yellow metal was traded at $1,533 per ounce, while silver at $49.05 per ounce on Friday.
Source: Kantipur
Nepal’s gold import has declined by a whopping 93 percent. The Nepal Rastra Bank (NRB)’s latest macroeconomic report shows that Nepal imported gold worth Rs 2.62 billion in the first eight months of current fiscal year, whereas the figure during the same period last year stood at Rs 37.46 billion.
The massive decline in gold import, according to bullion traders, is due to quantitative restriction on import that the government has enforced since last year. The import had touched an all time high in the last fiscal year when Nepal imported gold worth Rs 41.63 billion, an increment of 151.24 percent.
Such was the surge in the import that the government was forced to increase the import duty on gold and impose a ceiling on sales. The dramatic rise in the import of the precious yellow metal last year was one of the major reasons behind the huge Balance of Payment (BoP) deficit that the country experienced in FY 2009-10.
The government currently allows only commercial banks to import 15 kg of gold per day. Normally, the domestic market consumes 30-35 kg of gold per day, but with the soaring price, the demand has come down by 50 percent, according to traders.
The price of the metal has increased by over 30 percent compared to last year. In the domestic market, the prices of gold and silver set an all time high on Friday because of soaring investors’ preference for the metals. On Friday, the precious yellow metal touched Rs 42,451 per tola (11.664 gm) mark, while silver price stood at Rs 1,350 per tola. Gold, which was traded at Rs 36,095 per 10 gm on Sunday, increased by Rs 300 per 10 gm on Friday. On Tuesday, the price slumped to Rs 35,795, the lowest mark over the week. The price of silver also settled at Rs 1,157.50 per 10 gm after tumbling to the week’s lowest of Rs 1,097 per 10 gm on Wednesday. On Sunday, silver was traded at Rs 1,140 per 10 gm.
According to Manik Ratna Shakya, general secretary of Nepal Gold and Silver Dealers’ Association (Negosida), weak US dollar in the international currency market stimulated the demand for gold and silver for investment options. “Recently, US dollar touched the 11-month lowest mark against Euro.
Therefore, investors in the international market are shifting towards gold and silver for investment,” said Shakya. “Weak dollar coupled with the political turmoil in the middle-east and Japan disaster is fuelling the demand for gold and silver.”
Comparatively, the demand for silver is high in international market due to the ongoing process of Japan’s recovery. “The price of silver since last Janaury surged by almost 70 percent, while the price of gold increased by just 30 percent,” said Shakya, adding that the silver price might rise further.
In the international market, the yellow metal was traded at $1,533 per ounce, while silver at $49.05 per ounce on Friday.
Source: Kantipur
