MONEY»
Gold trade bodies agree
KATHMANDU, AUG 25 -
The tussle among gold traders ended on Wednesday after an agreement to form a joint ‘Gold and Silver Management Task Force’ to manage the bullion business in the country. With this, Nepal Gold and Silver Dealers’ Association (NEGOSIDA) has also decided withdraw its nationwide closure of gold shops slated until Thursday.
All three gold traders associations - NEGOSIDA, Nepal Gold and Silver Art Association (NEGOSAA) and Nepal Gem and Jewellery (NEGJA) - have sealed a nine-point deal in the presence of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) officials to go hand in hand and deal with the government, Nepal Rastra Bank (NRB) and other concerned organizations mutually.
As per the agreement, NEGOSIDA will coordinate the task force, which will also include the presidents of NEGOSAA and NEGJA. The taskforce will also fix the daily bullion price and manage the distribution system of the yellow metal.
“Under the agreement, the task force will start fixing daily bullion price from tomorrow,” said Ramesh Maharjan, NEGJA president. “We will also request NRB to increase gold import quota in view of the demand.”
According to traders, the daily demand for gold across the nation is around 35 kg per day and the daily release of 10 kg by the commercial banks is not enough prior to the festive season.
“There should be at least 20 kg import per day,” said Maharjan. He also said that the gold traders associations would start collecting gold from banks as per provisions introduced by NRB last Friday.
NRB issued a new directive allowing NEGOSAA and NEGJA to make recommendation for procuring 25 percent of the gold quota each from commercial banks importing and releasing gold through traders. NEGOSIDA was entitled to issue recommendation for 50 percent of the total 10 kg.
Posted on: 2010-08-26 08:35
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