Nepal Rastra Bank (NRB) has increased the quantity to import silver. As the foreign exchange reserves have increased, the central bank has allowed banks and financial institutions to import silver equivalent to $ 60,000 at a time.
Earlier, after the decrease in foreign exchange reserves, NRB set a limit for silver imports worth $ 35,000. But now, banks and financial institutions will be allowed to import 80 kg of silver at a time.
This limit has been increased by revising the unified instructions issued by the NRB’s Foreign Exchange Management Department.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the import and sale of silver will be made more systematic under the new system. “This arrangement will facilitate the export of silver jeweler,” said FENEGOSIDA President Manik Ratna Shakya.
The Department has arranged additional facilities for traders who export silver, artistic items etc. According to the department, the limit of $60,000 is not applicable for advance payments or promissory notes or purchase orders from abroad that confirm the export order. Exporters of silver jewelry will be allowed to buy more than one kg of silver.
President Shakya said that the removal of the limit of one kg, which was previously imposed on the sale of silver by banks, is a positive thing. After setting the silver quota, now the demand is being met with silver brought from India. According to Shakya, even if the quota is increased, there is no possibility of exporting silver in India from Nepal as silver is cheap in India.
Silver worth Rs 640 million imported in first eight months of current FY
After the National Bank imposed a quota system on silver imports, imports of silver decreased significantly. It was arranged that silver worth $35,000 could be imported at a time.
Earlier, no payment limits and quantities were fixed for silver imports. In the first eight months of the current fiscal year, Nepal has imported silver worth about Rs 640 million. Silver worth Rs 12 billion was imported last year during the same period.
