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NRB hikes gold import quota
KATHMANDU, JUN 08 -
Nepal Rastra Bank (NRB) has allowed banks to import 20 kg gold a day — double the quota to address local demand. The move comes at the behest of gold traders who were long demanding the central bank increase import.
But, NRB officials said the move was taken to ease the availibility of gold during the wedding season for just a month to be effective from Monday.
The central bank took this decision on Monday, following a meeting with representatives of Nepal Gold and Silver Dealers’ Association (NEGOSIDA) on Sunday. In recent times, six commercial banks have been involved in importing 10 kg of gold everyday from the international market.
“We had demanded NRB import 30 kg of gold daily at least during Ashad (Mid-June to mid-July), the final month of the current fiscal year in view of the increased demand in the market because of wedding season,” said Tej Ratna Shakya, NEGOSIDA president. “The NRB decision is practical as it will ease the current scarcity of gold in the
local market.”
Incidentally, despite the wedding season the demand for gold has declined in recent days following the price hike propped up by the weakening Indian currency against the dollar and the effect of the financial crisis in the European Union.
During the last one week, daily trading of gold hovered around 10 kg. Prior to this, demand had increased to over 25 kg per day. “Now, the daily demand will increase to 30 kg very soon because of the wedding season,” said Shakya.
Meanwhile, maintaining its upward trend, the price of gold set a new record within a week reaching Rs.31,035 per ten gm (Rs. 36,200 per tola) on Tuesday in the local market. Last Wednesday, it was traded for Rs. 30,910 per 10 gm (Rs. 36,050 per tola).
“The price of the gold reached a historic high following price hike in the international market and devaluation of Indian currency against the dollar,” said Shakya. “The price increased to US$1,237.60 per ounce from yesterday’s US$1,218 in the international market.”
Day Price per tola
June 8 Rs. 36,200
June 7 Rs. 35,900
June 6 Rs. 35,650
June 4 Rs. 35,120
June 3 Rs. 35,550
June 2 Rs. 36,050
June 1 Rs. 35,500
Source: NEGOSIDA
Posted on: 2010-06-09 07:38
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