At a meeting mediated by Federation of Nepal Chambers of Commerce and Industry (FNCCI), representatives of Nepal Gold and Silver Dealers´ Association (Negosida), Nepal Gems and Jewelry Association (NGJA) and Nepal Gold and Silver Artists´ Association (NGSAA) agreed to form the mechanism to end uncertainty seen in the bullion market in the last few days. [break]
Representatives of Federation of Handicraft Association of Nepal (FHAN) were also present in the meeting.
The mechanism, which is led by the president of Negosida, has the presidents of NGJA and NGSAA as members.
“The mechanism will fix price of gold and silver in the market and also look after the distribution of gold and silver in the market,” the associations said at a press meet organized at FNCCI.
The mechanism will also make a broad guideline that will among others manage gold and silver trading. As per the agreement, the mechanism´s secretariat will be set up at Negosida´s office and Negosida´s general secretary will serve as the member secretary of the mechanism.
The mechanism will also assist the government to formulate necessary policy to further open up gold and silver market as well as take necessary initiatives to increase gold supply as per the need of the market.
It will also support the initiatives FHAN to lobby with the Nepal Nepal Rastra Bank (NRB) to arrange additional quota of gold and silver for export purpose.
Negosida has also agreed to call off all its protest programs on condition that other associations -- NGSAA, FHAN, NGJA and FNCCI -- would take necessary initiatives to address the issues raised by it.
It has been launching protest, including halting trading and price fixation - since Sunday, to protest the central bank´s decision that authorized NGSAA and NGJA gold and silver purchase recommendations for their members.
Negosida, which was enjoying exclusive authority to issue purchase recommendations for gold dealers, had announced shutdown of gold market across the country beginning Sunday.
As per NRB´s fresh decision, Negosida could issue purchase recommendations for 50 percent of the 10 kg of gold made available by the commercial banks. It had authorized NGSAA and NGJA to recommend 25 percent each of the total gold made available by banks for the day.
Similarly, it had asked the associations to sell 40 percent of the total gold in market outside the Bagmati zone.
Though Negosida refrained from price fixation after the decision, NGJA and NGSAA had formed a joint committee to fix the price of gold and silver and issue purchase recommendations for their members.
Related story
Gold price reaches all-time high at Rs 160,400 per tola
