Nepal Gold Markets Remain in Disarray
Source: Commodity Online (12/6/10)
"Gold and silver imports stalled on commercial banks' delay in framing guidelines."
Analsysts said imports of gold and silver will not resume at least in next few days due to delay in framing guidelines by commercial banks.
Nepal's Ministry of Commerce and Supply has finally asked the central bank to prepare a guideline for commercial banks, stating terms and conditions for the import of gold and silver.
MoCS request comes after two weeks since the financial ordinance has lifted the ban on the import of gold and silver. However, the ministry has asked the central bank to consult it while preparing the guidelines.
Nepal officially lifted the ban on import of gold and silver two weeks ago, authorizing commercial banks as the sole importer for both gold and silver. However, commercial banks fall under the jurisdiction of NRB.
The central bank is yet to issue guidelines for commercial banks to follow regarding import of the precious metals. Until the guidelines have been issued, commercial banks do not have the authority to import or sell gold and silver to traders. Most importantly, NRB needs to fix the import quota for both the metals.