Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association, said two traders had imported 20kg gold through Siddhartha Bank and Standard Chartered Bank. [break]
“We hope the price would go down with the psychological effect of fresh import and the end of the wedding season in which gold consumption is higher,” said Shakya.
Gold is selling for Rs 27,090 per 10 gram in domestic market. He said the improved supply would discourage the trend of hoarding gold in the coming days.
The association has been demanding the government to facilitate to import gold up to 15-20 kg per person as hand carry as per its recommendations.
Taking advantage of shortage of gold in international market, local traders have been selling gold at Rs 1,025 per 10 gram more than the rice in India. Shortage of gold in domestic market due to restriction in imports has prompted traders to smuggle the yellow metal from the southern neighbor.
Shaky also said local traders were facing difficulty in meeting demand for yellow metal on the back of the shortage of gold.
The government had imposed restriction on gold imports last month to control burgeoning trade deficit due to huge imports of gold. The government took the decision after the imports couldn´t be tamed even after imposing the provision of bank guarantee or Letter of Credit worth 40 percent of total value of gold.
Official data shows the nation imported gold worth Rs 33 billion in the last six months ending mid-December, 2010.
Related story
Nepali, Indian traders have set up offices in Hong Kong to faci...
