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Falling remittance inflows linked to ‘illegal’ gold imports

The Kathmandu Post, Nepal, 15 December 2021 - The Tribhuvan International Airport customs office on November 29 seized 21kg of gold brought in the form of jewellery by several people arriving from abroad.

The Tribhuvan International Airport customs office on November 29 seized 21kg of gold brought in the form of jewellery by several people arriving from abroad.

The gold was seized from individuals because they were carrying more than the set threshold—50 grams of gold jewellery per person. Authorities were taken by surprise when they found out the seized amount of gold on a single day was more than what the commercial banks imported per day.

Only commercial banks in Nepal are allowed to import gold, and the limit for per day import has been fixed at 20kg.

“That gold bullion in large quantities is being brought informally and being seized every day at the airport suggests that it is one of the reasons for the fall in remittance inflow,” said Prakash Kumar Shrestha, chief of the economic research department at the Nepal Rastra Bank.

When workers spend their earnings to buy gold abroad, it leads to a reduction of money they send and bring home.

Remittance sent home by Nepali workers abroad has been the mainstay of Nepal’s economic activities.

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Source: https://kathmandupost.com/national/2021/12/15/falling-remittance-inflows-linked-to-illegal-gold-imports

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