Nepal bans gold import to save forex

Concerned at pressure on the country's forex reserves, Nepal government has put a ban on import of gold.

Concerned at pressure on the country's forex reserves, Nepal government has put a ban on import of gold.

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The move came into effect from Friday in order to protect the foreign currency reserves under pressure due to steep rise in import of the yellow metal.

"The decision will remain in effect till further notice," Ganesh Dhakal, joint secretary at ministry of commerce and supplies was quoted by local media.

The decision was taken following a request from Nepal's central bank as despite controlling the supply of gold available in the market, gold import has hurt the foreign currency reserves.

Flow of forex due to gold import has nearly trebled to NRs 39.4 billion in the past one year in comparison to last year.