MONEY»
Gold trading to take hit
KATHMANDU, AUG 21 -
Nepal Gold and Silver Dealers’ Association (NEGOSIDA) has decided to shut down shops and halt gold trading on Sunday and Monday nationwide as a part of its protest against Nepal Rastra Bank’s decision taken on Friday.
The central bank had issued a new circular permitting Nepal Gold and Silver Art Association (NEGOSAA) and Nepal Gem and Jewellery Association (NEGJA) to issue recommendation for procuring 25 percent of gold each from the total release of 10 kg per day by commercial banks.
A board meeting of NEGOSIDA held on Saturday decided to shut down jewellery shops. NEGOSIDA which also fixes the daily price of bullion has decided not to set the daily price for two days.
“We want NRB to restore the previous provision and increase the quota of gold import,” said Tej Ratna Shakya, president of NEGOSIDA. “The new provision allows
us to distribute 3 kg of gold in Bagmati Zone. But it is not possible, as we have over 1,000 traders in this zone.”
NEGOSIDA, the oldest association of gold traders said it would garner suggestions from its district members on Sunday and tender a memorandum to the central bank on
Monday. The association has 2,500 member traders in 35 districts among a total of 4,000 traders across the country.
Ramesh Maharjan, president of NEGJA, said that they will open all shops associated with their association and do the daily bullion business setting the price in collaboration with NEGOSAA.
NEGJA and NEGOSAA have long been seeking their rights in gold procurement from banks, and they have welcomed the central bank’s decision saying that it would help real traders get the gold. They had accused NEGOSIDA of issuing recommendations
only to big traders involved in the business of raw gold.
“The wholesalers who used to get up to 5 kg of gold from banks did not release to the retailers,” said Khem Raj Biswakarma, treasurer of NEGOSAA. “This new provision has enabled only retailers to procure gold.”
NEGOSIDA president Shakya claimed that they were distributing gold to all traders equally. “We just limited the quantity to 200 gm per trader two weeks ago due to gold shortage,” he added.
According to the new directive issued by NRB, only traders involved in trading of jewellery and gems can get recommendation to procure a maximum of 1 kg gold from concerned banks.
Posted on: 2010-08-22 09:43
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