Traders of the yellow metal said rising price of gold in the international market amid weakening US dollar and supply constraints in the market led to hike in prices in domestic market.[break]
Gold price is higher by as much as Rs 1,500 per tola in the domestic market as compared to international prices. This has encouraged smuggling of the yellow metal from India for the ongoing wedding season when the gold sales hit peak.
Though the government had lifted ban on gold imports last week, allowing designated commercial banks to import and distribute to the yellow metal to the dealers, the new provision has yet to be implemented in the absence of necessary guidelines.
The Ministry of Commerce and Supplies (MoCS) has entrusted the responsibility of formulating the guidelines for the management of gold supplies to Nepal Rastra Bank.
Draft guidelines ready
NRB - the central monetary authority -- has forwarded the guidelines for the management of gold supplies to MoCS on Tuesday.
“We have prepared a draft of the guidelines and submitted it to MoCS. We will enforce the guidelines once MoCS returns it with necessary suggestions,” said Gopal Kafle, spokesperson of NRB.
The draft has given continuity to previous provision wherein commercials banks are allowed to import and sell gold to dealers in recommendation of the three associations of gold and silver dealers in proportion to their member base.
Kafle said the quantity of gold to be imported by designated banks has been increased by 50 percent to 15 kg per day.
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