Nepal’s commercial banks stop import due to gold stock piling
KATHMANDU: Nepal’s commercial banks have stopped the import of gold for the last two weeks.
The banks stopped the import because they have enough gold stock. The piling of gold stock forced the banks to stop the import as per the quota fixed by Nepal Rastra Bank, which is 20 kilogram per day.
The sharp decrease in gold demand in the bullion market has discouraged gold traders buying gold leading to the piling of stock at banks, said Laxmi Prapanna Niroula, NRB spokesman.
The local banks have had above 700 kilograms of gold in stock till the date, he informed.
Owing to decrease in the demand of gold in the local market after soaring gold price, the commercial banks has stopped importing the precious yellow metal, he said.
The unpredicted price rise in the local market has forced the banks to stop gold import as there is a high risk of suffering losses because high fluctuations in gold prices are possible in the international market, he said.
According to him, the banks will start bringing gold as per the NRB quota after gold demand in the domestic market becomes normal.
Only commercial banks are allowed to import gold in the country on a big scale. NRB has allowed the banks to import 20 kilograms per day.
“We, the traders, purchased very nominal quantity of gold from banks from July 5 onwards when the price of gold reached Rs. 65,000 per tola. And the banks have stopped gold import from July 10,” he said.
The fresh demand of gold has remained almost nil at present and this situation will continue for a month, he said.
People are still willing to sell their ornaments instead of buying new jewelleries due to high price, he said.
“Due to increase in the flow of consumers desiring to sell their gold ornaments, the traders started calling their consumers on certain times only to buy their ornaments as the traders are not able to buy jewellery due to lack of funds,” Shakya said.
“We are waiting for the Teej festival which is expected to increase gold demand. Due to high price, demand will not go up as much as in the last year. Last year, the gold demand was 45 kilogram a day during the Teej festival,” he said.
The price of gold has remained almost stable at Rs. 65,000 per tola in the local market this week, he said.
Published Date: Saturday, July 27th, 2019 | 08:12 PM