In the first five months of last fiscal year, Nepal had imported 450 kg of gold worth Rs 1.337 billion, compared with Rs 9.872 billion this fiscal year.[break]
According to traders, gold imports slumped last fiscal year as the government failed to renew an ordinance that allows wholesale agencies like banks to bring in the yellow metal into the country. As a result, imports went down to nil between mid-September and mid-November of 2010.
“Despite this we were able to fulfill the market demand as the central bank came to our rescue and released significant quantity of gold in the market,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers Association (Negosida).
Currently, major institutional gold importers are Nepal Investment Bank Limited, Prime Bank and Standard Chartered Bank. These banks give away up to one kg of gold to each trader per day. The rest comes from people, who come from abroad, and bordering cities in India, from where gold is smuggled into Nepal.
Negosida has put average daily demand of gold in local market at 20-22 kg. This is lower than last year´s per day demand of 30 kg. “The demand for gold has gone down this year due to sharp hike in prices,” said Shakya.
Records show gold which was traded for Rs 40,000 per tola (11.664 grams) last fiscal year has now gone up to over Rs 52,000. On Wednesday, it was priced at Rs 52,900 per tola.
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