November 14: The rise in price of gold in the international market has resulted in a decline in import of the precious yellow metal in Nepal in the first three months of the current fiscal year.
Data provided by the Trade and Export Promotion Centre shows that the import of gold in the review period has decreased by 99.2 percent compared to the corresponding period of last fiscal year.
Nepal imported gold worth Rs 7.56 billion in the first three months of the last fiscal year 2018/19. However, the country imported gold worth Rs 65 million this year, according to the data provided by the centre.
The price of gold in Nepal is determined as per the price of gold in the international market. Due to the rise in price of gold in the international market since June/July, the domestic market of Nepal has also witnessed an increase in the price of gold.
The price of gold in Nepal was Rs 60,000 per tola (11 grams approx) about four months ago toward the end of last fiscal year. The price of gold increased up to Rs 73,500 per tola when the price was at its peak. Currently, gold is being traded for Rs 70,000 per tola.
The rise in price of gold resulted in a significant decline in gold business. The traders then urged banks not to import gold. Commercial banks have the right to import gold in Nepal.
Bankers used their stock of gold during this period, according to former president of the Federation of Nepal Gold and Silver Entrepreneurs Tej Ratna Shakya.
“The increase in price of gold in the international market caused a massive slump in our business. Then we ourselves requested the banks not to import gold,” said Shakya.
He said that banks had a stock of 745 kg of gold by the end of last fiscal year.
According to the gold traders, they made good business during Tihar despite the increase in price of gold. Shakya said that the gold business is slowly picking up pace as the wedding season in just around the corner.