Nepal Rastra Bank (NRB) has decided to double the daily gold import quota. Commercial banks can now import up to 20 kilograms of gold per day, marking a substantial increase from the previous limit.
While the NRB has yet to issue an official circular confirming this decision, sources within the bank have indicated the change in regulations. The Ministry of Industry, Commerce and Supply had recommended the increase in the gold import quota, and this proposal was forwarded to the central bank for implementation.
It’s worth noting that on March 6, 2022, the Nepal Rastra Bank had issued a circular reducing the daily gold import quota to 10 kilograms. This reduction was implemented in response to heightened import activity triggered by the COVID-19 pandemic and increased pressure on imports due to the Russia-Ukraine war, which had caused a surge in consumer goods prices.
However, with the external sector now showing signs of stabilization, the government has chosen to raise the gold import limit. An official from the NRB has confirmed that they are in the process of drafting a circular instructing commercial banks to implement the increased gold import quota. This change is expected to have implications for the country’s gold trade and economy.