Monday, January 13, 2014

Central bank revises gold supply quota upwards for six months



The central bank has revised gold import quota upwards by five kg for six months starting from January 15.
Earlier in August, the central bank had increased the precious yellow metal supply quota – on the request of bullion traders – by five kg to 20 kg as the demand exceeded supply for three months in the marriage season only.
The central bank has today, issuing a circular, said that it has increased gold supply quota to 20 kg per day for six months to help traders meet the increasing demand during the wedding season.
However, the bullion traders claim that the market demand is double – in the weeding season – the central bank quota of 20 kg per day that has fuelled the smuggling of the precious yellow metal. Apart from ornamental usages traditionally, gold has also become a good investment portfolio due to lack of investment tool in the market that has increased the demand.
The traders have, thus, asked the government to permanently fix the supply quota at 30 kg per day instead of revising every once in a while, whereas the central bank has been keeping hawk's eye on gold import since it has hit the Balance of Payment (BoP) a couple of years ago.

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