KATHMANDU(BullionStreet): Nepal imported 14.38 percent more gold during the first half of this fiscal as against the same period of last fiscal year.

According to Nepal Trade and Export Promotion Center, the nation imported gold worth Rs 13.28 billion in the six-month period to mid-January as against Rs 11.61 billion recorded in the same period last year.

The Center attributed the hike to international price hike of the precious yellow metal and depreciation of Nepali currency.

Monetary value of gold imports galloped as yellow metal prices went up in the international market, and the value of Nepali currency weakened, making imports expensive.

Nepal Gold and Silver Dealers Association said import value of gold shot up by double digit during the six-month period even though daily imports of gold through formal channel remained unchanged at 15 kg.

Nepal only allowed 23 commercial banks to import gold for domestic consumption. Gold price in Nepal has gone up by around 10 percent this year compared to that of last year.

Average gold price stood at Rs 58,000 per tola (11.664 grams) in the domestic market during the review period, up from Rs 53,000 per tola in the same period last fiscal year.

Demand for gold has dropped in the domestic market with the ending of the wedding season that started in mid-January. Traders said daily gold demand in the local market has now declined to 20 kg to 25 kg from around 40 kg during the wedding season.

Traders also said the daily demand for gold will go down to 10 kg to 15 kg in the next two months, as no major festivals and weddings fall during this period.

Scarcity of gold could worsen in the upcoming wedding season as the government has tightened the noose to control smuggling of gold from northern borders, while gold released in the market by commercial banks was not sufficient, Negosida added.