With the wedding season approaching, traders have begun purchasing and stockpiling gold in anticipation of increased demand for the precious metal starting mid-January.
Despite the government reducing customs duties on gold imports in mid-November, banks were hesitant to import large quantities due to a dispute between the Federation of Nepal Gold and Silver Dealers’ Associations and the Federation of Nepal Gold Silver Gem & Jewellery Association over gold allocation.
This situation began to change after Nepal Rastra Bank (NRB) formed a task force in mid-December to address the issue. Following this intervention, commercial banks significantly increased their gold imports. Within a week, around 200 kg of gold was brought into the country, with 100 kg allocated for the Kathmandu Valley and another 100 kg for regions outside the valley, according to the Nepal Bankers’ Association.
