NBA to publish notice on gold sale details
Amid complaints about commercial banks selling gold rbitrarily, the Nepal Bankers’ Association (NBA) has said it will henceforth publish a weekly notice regarding importing banks, banks in queue, quantity of import and identity of buyers.
NBA took the decision upon Nepal Gold and Silver Dealers’ Association (Negosida)’s request during their meeting on Wednesday.
The government has imposed a limit on gold import at 15 kg per day, that too by commercial banks only. Currently, 13 commercial banks import gold on a rotation basis as per NBA’s recommendation, and a bank imports 50 kg in one consignment. They are allowed to sell 1 kg gold per day per dealer.
However, the market, of late, is witnessing a shortage of gold and traders have blamed banks for the situation. They have accused banks of selling gold randomly, sometimes selling their entire consignment of 50kg on a single day.
“Now, NBA will publish the detailed notice,” said Ashoke Rana, president of NBA.
“However, the present gold shortage is due to a stiff fall in supply compared to demand.”
Negosida said such a transparency will provide partial relief, but to solve the problem, the government must increase the import quota. “At present, the demand for gold is high due to wedding season,” said Tej Ratna Shakya, president of NEGOSIDA. “The shortage is seriously hampering our business.”
According to Negosida, demand for gold stands at 40 kg per day.
The association recently wrote to the Nepal Rastra Bank (NRB) seeking a hike in gold import quota during the wedding and festive seasons. Bankers have also asked the traders to come with demand figures during different seasons so that that can request NRB to increase import quota on a seasonal basis.
NRB officials confirmed that they received the letter and said the issue will be discussed in the upcoming board meeting.
However, the gold import ceiling less likely to be increased as NRB Governor Yuvraj Khatiwada is against the idea. Khatidawa, a few weeks ago, had said the import of gold cannot be raised at a time when the country is failing to encourage people for investing in more productive sectors.
Because of the short-supply, the price of gold, according to bullion traders, has remained higher in the local market than the international price. “Until Thursday, gold price here was dearer by Rs 1,000 per tola than the international price,” said Shakya.
Posted on: 2012-02-05 10:08
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