Nepali gov't lifts gold import ban

Nepali government has lifted the ban on the import of gold and silver, The Himalayan Times reported on Wednesday.

"The ban on import of gold and silver has been lifted from Tuesday," said Purushottam Ojha, Secretary at Ministry of Commerce and Supply (MoCS).

"Commercial banks are the only institutions authorized to import these metals and the domestic traders need to buy from them, " he said. "Procedures and regulations regarding the import by the commercial banks will be determined by Nepal Rastra Bank (NRB)," he added.

Regarding determination of import quota, he said, "MoCS and NRB will jointly take decisions on the quantity to be imported, based on the demand and situation of the market."

Gold and silver traders are feeling relieved for being able to buy gold but have expressed fears that importing gold through commercial banks may increase the prices.

He also expressed doubts about a lasting co-ordination between NRB and MoCS on the import quota based on market demand and situation.

About nine months ago, the government banned the import of gold to tackle the heavy balance of payments deficit since large quantity of gold import was said to be the main reason behind the deficit.

The government suspected that the imported gold was being smuggled to India where gold was expensive in comparison to Nepal due to differences in the customs duty. Thus, through an ordinance the government increased the customs duty in March to match the prices with that of in India.

However, the import of gold and silver was banned by the government after the expiry of ordinance in September.

And, to meet the current demand and discourage illegal imports, NRB, the central bank of the country, supplied gold and silver to the market from its reserves for some time till a decision was taken on the matter in the budget.
(Source:xinhua)