Nepal is likely to extend daily quota of gold imports as country's marriage season extended up to second week of July.
Nepal's central bank, the Nepal Rastra Bank increased the quota of gold import for the commercial banks listed for gold trading in the local market.
The banks have a permission to import 10 kg a gold per day in ordinary condition. As per the decision, commercial banks have been importing extra 10 kg of gold per day, totalling 20 kg a day.
Nepal Gold and Silver Dealers' Association recently submitted a memorandum to the central bank for extension of period for which the additional quota of gold can be imported.
In Nepal, daily transaction of gold has increased to more than 30 kg per day by the end of each day the gold stock ends. Due to this, traders are unable to meet the increased demand in the local market.
Gold this week opened at Nepal Rs 36,200 per tola and remained at the same price on Monday whereas the trading price has fallen to Nepal Rs 35,950 per tola on Tuesday.
The central bank increased the quota of gold import for the commercial banks listed for gold trading in the local market.
But this additional quota was granted for 30 days only, which will end on July 7.