Gold traders say they are facing shortage of gold as the banks designated by the Nepal Rastra Bank (NRB) to import gold failed to supply gold as demanded by the dealers. [break]
“Failure of banks to import and supply gold as per the demand in the market has sparked shortage of the yellow metal. This has encouraged black marketing and illegal imports of gold from the southern neighbor," Tej Ratna Shakya, president of Nepal Gold and Silver Dealers Association (Negosida) - that fixes prices of gold and silver in domestic market -- told myrepublica.com on Sunday.
He further added that the association has been getting reports of traders selling gold at the price which is Rs 200 to Rs 300 per tola (11.664 grams) higher than what it should have been.
“We are getting complaints about overcharging by traders every day. But we can´t control such practices until and unless we ensure supply of sufficient quantity of gold in the market,” Shakya added.
Nepal Rastra Bank - central monetary authority - has allowed banks to import only 10 kg of gold per day against the average daily demand of 20 kg.
“Banks have been failing to supply gold as per our recommendations," Shakya said.
As per the existing provision, banks have to provide supply gold as recommended by Negosida.
The government has designated NIC Bank, Standard Chartered Bank, NMB Bank, Machhapuchchhre Bank, Nabil Bank, Bank of Kathmandu, Prime Bank and Laxmi Bank to import gold.
Recently announced Monitory Policy of the central bank vaguely states that specific quantity of gold would be made available in the market. Though the association had requested NRB to arrange the supply of at least 20 kg of gold per day, the central bank has yet to respond.
“NRB hasn´t responded to our request of increasing gold supply,” Shakya informed.
According to the association, daily demand for gold across the country hovers around 35 kg per day. The country imported 15.58 tons of gold worth Rs 41 billion in 2009/10.
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