KATHMANDU: The seven commercial banks authorised to import gold have brought in a total of 850 kg under Nepal Rastra Bank’s (NRB) quota system as of June 18, said the Nepal Bankers Association (NBA).
“We have imported 850 kg of gold as of Friday and issued recommendations for 900 kg,” said Saroj Guragain, coordinator of the gold importing banks at the NBA. “Now, we have 40-50 kg of gold in stock, and the process to import more as per the provision is going on.”
Of the total imported, the banks have already released around 800 kg in the local market under the recommendation made by the Nepal Gold and Silver Dealers Association. As per NRB’s provision, the banks were supposed to import 900 kg of gold till Friday.
The central bank had imposed the quota system on April 2 permitting only commercial banks to import 10 kg of gold per day with a recommendation from the NBA. Later on June 8, in response to increased pressure from the local market, the quota was doubled to 20 kg per day.
NIC Bank, Standard Chartered Bank, Nabil Bank, NMB Bank, Machhapuchchhre Bank, Prime Commercial Bank and the Bank of Kathmandu have been permitted to import gold. Similarly, Nepal Investment Bank, Laxmi Bank and Citizens International Bank have also shown interest to import gold lately.
Standard Chartered, NMB Bank, NIC Bank and Machhapuchchhre imported 150 kg each. Similarly, Nabil and Prime Commercial Bank have imported 100 kg each. Receiving the recommendation recently, the Bank of Kathmandu has imported only 50 kg of gold so far.
“If any commercial bank shows an interest and approaches us with the proper arrangement for import, we will immediately give our recommendation as per the provision of the central bank,” said Guragain, who is also head of the Financial Markets, Commodities and Investment Division of NIC Bank.
Meanwhile, the price of gold in the international market touched a historic high of US$ 1,257 per ounce on Sunday. However, the price in the local market did not cross the record of Rs. 31,035 per 10 gm set on June 8.
“The price on Sunday increased only by Rs. 285 per 10 gm compared to Friday,” said Tej Ratna Shakya, president of the Nepal Gold and Silver Dealers Association. “This is all because of the improving capacity of the Indian rupee against the US dollar.”
On Sunday, gold was traded at Rs. 31,000 per 10 gm (Rs. 36,160 per tola) in the local market. In the past two weeks, despite the price hike, demand for gold has increased to 25-30 kg per day because of the wedding season.
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