The Nepal Rastra Bank (NRB) has eased gold import regulations as the price of gold continues to hit new record highs.
Previously, commercial banks were allowed to import up to 20 kilograms of gold per day, but the central bank has now amended the rule to permit the import of up to 25 kilograms daily. The decision was made through an amendment to the Unified Circular 2081 issued on Friday.
Currently, only commercial banks recommended by the Nepal Bankers’ Association are authorized to import gold. After import, traders purchase gold from these banks for sale and distribution in the domestic market.
The NRB has been prioritizing expenditure and policy adjustments in light of the growing liquidity in banks and financial institutions. After earlier policy changes aimed at boosting credit flow in the capital market, the central bank has now introduced measures to increase gold supply.
Gold prices in Nepal have been climbing to historic highs, setting new records almost daily. On Friday, gold was traded at Rs 235,000 per tola, down from Thursday’s record high of Rs 239,200 per tola.
As gold prices surged, market supply had started to tighten. With the Tihar festival approaching and demand expected to rise further, the NRB’s move is aimed at ensuring smoother gold supply in the domestic market.
