Yellow metal, which was selling at Rs 53,565 per tola (11.664 gm) last week, saw a further decline in price to Rs 52,900 per tola on Monday.[break]
Commercial banks are not supplying yellow metal as per the market demand due to which there is a short supply of gold in the market, said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association (Negosida).
Traders said around a dozen banks receive yellow metal as per a quota system fixed by the government. At present, only commercial banks are allowed to import gold. Last year, gold was imported randomly, giving rise to dubious business practices.
Due to this, the government banned the import of gold and authorized leading commercial banks to import gold. Currently, 15 kg of yellow metal is imported every day.
Bankers said demand of yellow metal has increased surprisingly in the past weeks and they could not meet the demand as they cannot import more than 15 kg of gold a day. “We are importing yellow metal in turns as per the quota system fixed by the government,” said Rajan Singh Bhandari, president of Bankers´ Association of Nepal.
Traders said they want to import gold themselves through Open General License (OPG) system. If the government gives permission, different companies and banks can import the yellow metal as per the market demand.
“With the arrival of wedding season, around 30 kg of gold is currently being sold daily which is double the normal demand,” said Shakya.
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