Bhutan

Bhutan

The widespread use of money in Bhutan only began in the early 1960s with the growth of trade

with India and the initiation of bilateral development aid from India to Bhutan. Even though

Bhutan's economy is highly

Trade (expressed in billions of US$): Bhutan

Exports Imports

1975 N/A N/A

1980 .017 .050

1985 .022 .084

1990 .068 .078

1995 .103 .112

1998 N/A N/A

SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999.

Exchange rates: Bhutan

ngultrum (Nu) per US$1

Jan 2001 46.540

2000 44.942

1999 43.055

1998 41.259

1997 36.313

1996 35.433

Note: The Bhutanese ngultrum is at par with the Indian rupee which is also legal tender.

SOURCE: CIA World Factbook 2001 [ONLINE].

underdeveloped the price of consumer goods has remained fairly stable. The average percentage

change of prices each year was only 10 percent between 1990 and 1998. Total international

currency reserves by major Bhutanese holders (mainly the Royal Monetary Authority, Bank of

Bhutan, and Bhutan National Bank) rose dramatically in value from US$106.9 million in 1993-94

to US$218.2 million in 1997-98.

Two banks operate in the country: the Bhutan National Bank has offices in Thimpu and a branch

in Phuentsholing, and the Bank of Bhutan has branches in the country's main centers. No restrictions

are placed on the quantity of currencies that can be taken into Bhutan although they are limited to

the main international currencies. In the late 1990s Bhutan National Bank was partly privatized when

the government sold 40 percent of its shares to Citibank and the Asian Development Bank; the

government now owns only 27 percent of the bank. Bhutan has a stock exchange but it is not open

to external investment.