By A Staff Reporter
Kathmandu, Apr. 3: Nepal Rastra Bank (NRB) has increased gold import quota.
The central bank has increased the daily gold import quota from 10 kg a day to 20 kg a day citing the growing demand of the precious yellow metal in the local market.
"Although the gold traders have been demanding 30 kg gold per day, the daily import quota has been fixed at 20 kg depending on the market conditions, foreign currency reserve and other aspects," said Dev Kumar Dhakal, spokesperson of NRB, on Thursday.
He expressed his hope that the increasing quota of gold would address the present market demand.
The new provision came into effect from Thursday itself after the issuance of a circular by the NRB to the commercial banks to import gold as per new quota system.
Gold traders had met with the Finance Minister and the Commerce Minister complaining that the demand for raw gold in the market had increased and the supply could not meet the need.
The central bank increased the quota after businessmen started demanding an increase in the gold import quota.
Only a few days ago, businessmen had reached the central bank requesting it to increase the gold import quota.
Manik Ratna Shakya, president of Federation of Nepal Gold and Silver Dealers Association, welcomed the central bank’s decision.
“Although the revised quantity is still not sufficient to meet the market demand, it will, however, help ease the existing shortage,” he said.
According to traders, the demand for the yellow metal currently stands at 35 kg per day due to the arrival of the wedding season.
The shortage of gold in the Nepali market had started increasing after the import of gold was low. The NRB has addressed the demand of the entrepreneurs as the risk of illegal entry of gold in the market has increased due to unavailability of required raw gold, he said.
Earlier in April last year, the government had reduced the gold import ceiling to 10 kilogram for a day from 20 kilogram to maintain the balance of payment following the crisis created by COVID-19.