Gold markets in Nepal continued to suffer on short supply

Gold markets in Nepal continued to suffer on short supply amid reports that country’s gold imports dropped sharply in recent years.

According to the central bank of the Himalayan nation, in the last three years, imports dip by three times despite bought gold worth $ 45 million from the IMF last year.

Nepal Rastra Bank in a statement said the country imported Nepal Rs 9.87 billion worth gold in the first five months of the current fiscal year compared to Nepal Rs 25.54 billion in the same period of fiscal year 2009-10.

Nepal last year launched a gold policy to straighten the market. According to plan the central bank will first buy 1,000 kg 24 carat gold using money generated from the recent auctioning of the gold to domestic traders. T

The centralbank had completed auctions for more than 400 kg of gold at a price some Nepali Rs 1,000 higher than the international rate.

The move helped ease gold supplies in the market it has also enabled the central bank to make prudent use of gold in its reserve.

Prior to the auction, NRB had over six tons of gold in its reserve. While five tons of gold was in Nepal, another 1.2 tons is deposited in Luxemburg against the interest return of two percent per annum. The interest is received in gold.- BullionStreet

Tags: Nepal Gold imports

Posted by admin on Jan 31 2012. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry