KATHMANDU, NOV 20 - 2012
Domestic market is facing acute shortage of gold even as the daily demand of yellow metal continues to surge due to wedding season. Traders say there is a demand for more than 30 kg of gold a day but the supply has remained below 15kg. And with the banks failing to supply gold this week due to Tihar holidays, the situation turned from bad to worse.
According to bullion traders, the yellow metal is being sold with a premium of Rs 1,000 per tola (11.664 gm) over the daily price fixed by the Nepal Gold and Silver Dealers Association (Negosida). The association on Monday set the precious metal price at Rs 51,870 per 10 gm, but customers rushing to gold shops could not find gold at that price.
Negosida President Tej Ratna Shakya blamed inadequate supply for the higher price. “Because of poor supply, they have reduced taking orders for new jewelry for weddings,” Shakya said.
The traders have been demanding the government increase the gold quota, saying that the provision of 15 kg a day was insufficient. The supply situation has worsened after some commercial banks authorised to release gold in local market were unable to import from international market last week because of Tihar holidays.
It was the turn of Mega Bank and Civil Bank to import and release gold in Bagmati Zone and outside, respectively. The central bank provision requires banks importing gold to distribute 60 percent of the daily quota of 15 kg in Bagmati Zone and the remaining in other parts of the country.
Mega Bank said that it would import gold and start selling from Tuesday. “We could not import gold in time because of Tihar vacation,” said Anil Shah, the bank’s CEO. “There is a demand for 350 kg in the market . But we will be able to import and sell only 50 kg on Tuesday.”
Likewise, Civil Bank said that it would be importing gold by Thursday. Bankers argued failure to import gold in time was not the main reason behind the shortage, but it was due to bigger demand. Daily demand for gold during the wedding season ranges from 30 to 40 kg a day. Since commercial banks are permitted to sell only 15 kg, remaining demand is being partially fulfilled by gold imported illegally, they say. “Gold is also being used as a mode of payment to Indian traders due to shortage of Indian currency,” a trader said, lamenting that it was hard to find Indian currency notes even at the rate of Rs 168 per IRs 100. The official exchange rate is Rs 160 per IRs 100.
Source: The Kathmandu Post
Domestic market is facing acute shortage of gold even as the daily demand of yellow metal continues to surge due to wedding season. Traders say there is a demand for more than 30 kg of gold a day but the supply has remained below 15kg. And with the banks failing to supply gold this week due to Tihar holidays, the situation turned from bad to worse.
According to bullion traders, the yellow metal is being sold with a premium of Rs 1,000 per tola (11.664 gm) over the daily price fixed by the Nepal Gold and Silver Dealers Association (Negosida). The association on Monday set the precious metal price at Rs 51,870 per 10 gm, but customers rushing to gold shops could not find gold at that price.
Negosida President Tej Ratna Shakya blamed inadequate supply for the higher price. “Because of poor supply, they have reduced taking orders for new jewelry for weddings,” Shakya said.
The traders have been demanding the government increase the gold quota, saying that the provision of 15 kg a day was insufficient. The supply situation has worsened after some commercial banks authorised to release gold in local market were unable to import from international market last week because of Tihar holidays.
It was the turn of Mega Bank and Civil Bank to import and release gold in Bagmati Zone and outside, respectively. The central bank provision requires banks importing gold to distribute 60 percent of the daily quota of 15 kg in Bagmati Zone and the remaining in other parts of the country.
Mega Bank said that it would import gold and start selling from Tuesday. “We could not import gold in time because of Tihar vacation,” said Anil Shah, the bank’s CEO. “There is a demand for 350 kg in the market . But we will be able to import and sell only 50 kg on Tuesday.”
Likewise, Civil Bank said that it would be importing gold by Thursday. Bankers argued failure to import gold in time was not the main reason behind the shortage, but it was due to bigger demand. Daily demand for gold during the wedding season ranges from 30 to 40 kg a day. Since commercial banks are permitted to sell only 15 kg, remaining demand is being partially fulfilled by gold imported illegally, they say. “Gold is also being used as a mode of payment to Indian traders due to shortage of Indian currency,” a trader said, lamenting that it was hard to find Indian currency notes even at the rate of Rs 168 per IRs 100. The official exchange rate is Rs 160 per IRs 100.
Source: The Kathmandu Post
No comments:
Post a Comment