KATHMANDU, Nov 3: Can you guess how much gold does the Nepal Rastra Bank (NRB) actually have? Leave along general public, even bankers cannot estimate the quantity of gold held by the central bank.
The central bank currently holds more than 10 tons of gold, according to NRB Joint Spokesperson Rajendra Pandit. “We get gold mainly through two ways. First is the gold seized by security agencies and customs offices which is deposited in our vault. Second is our investment in gold reserves in other countries,” Pandit added. “NRB is getting 0.75 percent return from such investment.”
NRB has invested in 6.12 tons of gold which is deposited in different countries. According to the central bank, it has made investment only in gold of high quality.
Similarly, around 4 tons of gold seized by different government agencies is in the central bank's vault. “But most of the gold that enters the country through illegal channel are of inferior quality,” he added.
Keshav Adhikari, executive director of Nepal Bankers Association (NBA), said that commercial banks have imported 1.3 tons of gold in Fiscal Year 2016/17. “Of the imported gold, 174 kg is still to be sold,” he added. “Banks have upped gold imports after demand from jewelers increased,” said Adhikari. According to Adhikari, banks have begun the process to import additional 100 kg of gold.
Commercial banks had extended loans worth Rs 3.06 billion taking gold as collateral in the last fiscal year. The amount is 182 percent of their total loan portfolio, according to the NBA.
Bankers say the demand for gold from jewelers has increased after the government put restrictions on individuals to bring gold from abroad. Earlier, Nepalis working abroad could bring 50 grams of gold without paying any duty.
According to jewelers, this is main season for sale of precious metals. The demand will increase further when the wedding season begins in a fortnight or so, they added.
A banker said banks are importing more gold as the illegal import of precious metals is on the decline in recent months. “Jewelers have started to buy gold from commercial banks.
We have sufficient gold in stock,” the banker added.
Only commercial banks are allowed to import gold. NRB has permitted 23 commercial banks to import gold.
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