NRB increases quota of silver import

By A Staff Reporter,Kathmandu, Mar. 28: Nepal Rastra Bank (NRB) has increased the quantity of silver imports.

After the increase in foreign exchange reserves, the central bank has started to allow the import of silver equivalent to USD 60,000 at a time.

After the decline in foreign exchange reserves, the NRB set a limit for silver import of only USD 35,000.

This limit has been increased by revising the integrated circular issued by the Foreign Exchange Management Department of the NRB.

According to the Nepal Gold and Silver Dealers' Association, the new provision of silver import and sale will be made more systematic.

This arrangement will facilitate and boost the export of silver jewellery, said Tej Ratna Shakya, special member of FENEGOSIDA.

As per the new provision, now banks and financial institutions will be allowed to import 60-65 kgs of silver at a time.

“As per the present rate of silver in the international market, around 65 kgs of silver will be imported at a time from the new provision,” he said.

Businessmen had asked the government to allow the import of at least 100 kgs of silver at once citing that daily demand for silver in the country is more than 300 kgs, he said.

The NRB has arranged additional facilities for traders who export silver jewellery and artistic items.

According to the NRB, the limit of USD 60,000 is not applicable for advance payments or promissory notes or purchase orders from abroad that confirm the export order.

Exporters of silver jewellery will be allowed to buy more than one kg of silver.

Shakya said that the removal of the limit of 1 kg, which was previously imposed on the sale of silver by banks, is positive.

He said that there is still a high chance to smuggle silver due to lower supply than the demand.Silver import drops significantly

Due to the imposed quota system in silver import, the import of silver decreased during the first eight months of the current fiscal year.

According to the statistics of the Department of Customs, silver worth Rs. 670 million was imported during the first eight months of the current fiscal year.

Silver worth Rs. 12 billion was imported during the first eight months of the last fiscal year. The import of silver was open till last year.