Thursday, May 16, 2013

Central bank hikes gold quote

Nepal Rastra Bank (NRB) has increased gold import and distribution quota to 20 kg per day from the current 15 kg due to rising demand in the wedding season -- for two months only -- from yesterday.
"It will, however, expire on July 15, after the weeding season ends," according to the central bank that had tightened the precious yellow metal import due to huge Balance of Payment (BoP) deficit some years ago..
But the current comfortable position of the BoP and forex reserve made the central bank raise the gold import and distribution quota, apart from the bullion traders, who have been asking the central bank to increase quota to check the rising smuggling to fulfill the market demand.
According to the bullion traders, during the weeding season, the market has a demand of 40 kg to 50 kg gold as according to the tradition, Nepalis gift golden ornaments to th brides and bridegrooms.  

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