MONEY»
NEGOSIDA sulks at NRB move
KATHMANDU, AUG 23 -
The agitating Nepal Gold and Silver Dealers’ Association (NEGOSIDA) has decided to continue its protest against the provision introduced by Nepal Rastra Bank (NRB) on the release of the yellow metal in the market.
A NEGOSIDA board meeting on Monday decided to carry on its ongoing nationwide closure of gold shops until Thursday to pressurise the central bank to increase gold import quota and bring back the previous provision.
NEGOSIDA also submitted a memorandum to NRB to address its demand on import of gold and sales provision. Irked at the new provision of the central bank, gold traders launched their protest on Sunday.
NEGOSIDA president Tej Ratna Shakya said NRB was positive about their demand and had also asked to form a joint committee comprising representatives of NEGOSIDA, Nepal Gold and Silver Art Association (NEGOSAA) and Nepal Gem and Jewellery Association (NEGJA) under the supervision of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
“A meeting in this regard has been scheduled for Wednesday,” said Shakya. “‘However, we shall continue our protest until we get results.”
Shakya said they were forced to shut shop as they were unable to issue
recommendation and continue normal business because of the chaotic market situation created by the ‘impractical’ decision of the central bank.
“Wholesalers are not eligible for procuring gold and retailers cannot go to commercial banks asking for less than one kg of gold,” said Shakya. “The provision is not convenient to retailers at all.”
On Friday, NRB issued a new provision which restricts wholesales from acquiring gold from commercial banks. Only retail traders are permitted to procure 1 kg of gold based on recommendations made by gold traders’ associations.
Meanwhile, the other two gold trading associations—NEGOSAA and NEGJA—on Monday fixed the gold price at Rs. 30,950 per ten gm.
Even though NRB has made the new provision of procuring gold from commercial banks on a percentage basis, none of the three gold trading associations has made any recommendation till date.
The directive issued on Friday allows NEGOSIDA to procure 50 percent, NEGOSAA and NEGJA each 25 percent
of the 10 kg to be released on a daily
basis by banks.
“We could not procure gold today following the banks’ internal process,” said Ramesh Maharjan, president of NEGJA. He said that they acquire gold regularly on Thursday.
Posted on: 2010-08-24 10:11
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