The new provision, which came into effect on Wednesday, will expire on July 15, says an NRB directive issued on Wednesday.[break]
The central bank was able to raise the gold import and distribution quota due to comfortable position of the balance of payments (BoP)--which measures the country´s total transaction with other nations.
The country registered a BoP surplus of Rs 30.74 billion over the first nine months of the current fiscal year because of current account surplus despite widening trade deficit. The BoP surplus stood at Rs 11.78 billion over the first eight months of the current fiscal year.
“We hope the quota increment during the peak wedding season will not affect the economy, as current account and BoP are at comfortable positions,” a high-ranking NRB official said.
Gold dealers have long been demanding that the government increase gold import quota due to rising demand of gold due to wedding season.
Although daily demand for gold hovers at 25 kg to 30 kg during normal season, it shoots to 50 kg per day during wedding seasons.
“The quota increment does not fulfill the market demand. But it´s better to have something than nothing,” said Tej Ratna Shakya, former president of the Federation of Nepal Gold and Silver Dealers´ Associations.
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