Gold import quota raised

KATHMANDU: Gold traders can purchase additional five kg of gold per day for the next six months, as the central bank has raised daily gold import quota to 20 kg. The latest provision will expire at the end of the current fiscal year.

Issuing a circular today, Nepal Rastra Bank (NRB) said it has hiked gold import quota to 20 kg per day for the next six months—from January 15 to July 16. Gold traders have been complaining about the shortage of the yellow metal due to restriction in imports.

According to gold traders, the demand for gold shoots up to 35 kg per day during peak seasons such as September to December, January to February, and April to June. In these months, festivals and weddings raise the demand for jewellery.

“Even though 20 kg of gold per day is not enough to meet the market demand during peak seasons, it is definitely better than previous ceiling of 15 kg,” pointed out former president of the Federation of Nepal Gold and Silver Dealers’ Association Tej Ratna Shakya.

Back in September as well, NRB had increased gold quota to 20 kg per day till mid-December to meet increased demand for the yellow metal.

“Most importantly, traders outside Kathmandu Valley will be relieved from the hike in the ceiling,” Shakya said. Gold dealers can buy yellow metal from commercial banks based on recommendation of their respective associations, but cannot import the precious metal on their own.

State authorities are tightening the rein on gold imports, as three years ago high amount of gold imports had hit the country’s balance of payments. In the five months between mid-July and mid-December, Nepal imported gold worth Rs 7.6 billion.

(Source: THT)