KATHMANDU: The banks of Nepal have halted imports of gold, after a notable decline in demand in the domestic market.
According to Anil Sharma, executive director of Nepal Bankers’ Association (NBA), the stock of raw gold with banks are on a high, as demand has plummeted. As per estimates, the banks hold around 450 kilograms of raw gold.
The association has decided to temporarily halt new gold imports at least until that time when the existing gold inventory is cleared. The country allows imports of raw gold only through 16 authorized banks, who later sell them to jewelers.
Mohan Kumar Bishwokarma, president of the Federation of Nepal Gold and Silver Dealers’ Association noted that trade witnessed a significant drop in demand for gold and gold jewelry since mid-December last year, due to high prices.
The customers are seen avoiding fresh buys, waiting for a correction in prices, he added. Incidentally, domestic gold prices in Nepal had hit an all-time record, surpassing Rs. 76,500 per tola on Wednesday.
The country’s jewelers noted that business has seen a decline of nearly 70% in recent months, as compared with the prior-year period. The daily gold demand at 10 kilograms in January this year, remained substantially lower from 30 kilograms during January 2019.
Comment