Introduction of Currency in Bhutan

Overview

The Bhutanese Ngultrum (Nu.) was introduced in 1974^[4] by the Royal Monetary Authority of Bhutan, giving the country its own national currency for the first time.^[1] Prior to this, the Indian Rupee was the sole currency in circulation.

Background

The introduction of a national currency was part of the broader modernization drive under the Third King, Jigme Dorji Wangchuck, and his successor the Fourth King, Jigme Singye Wangchuck. Having a national currency was considered essential for Bhutan's sovereignty and economic management.

Features

The Ngultrum is pegged at par with the Indian Rupee (1 Nu. = 1 INR), reflecting the deep economic integration between the two countries. Indian Rupees remain legal tender in Bhutan (except for 500 and 2000 INR notes), and both currencies circulate freely.

Significance

The introduction of currency marked Bhutan's transition from a largely barter economy to a monetary one. In remote highland areas, barter trade (particularly in chugo, butter, and rice) continued for years after the Ngultrum's introduction.

References

1. "Brief history of currency of Bhutan." Royal Monetary Authority of Bhutan.
2. "The history and evolution of money in Bhutan." Daily Bhutan.
3. "The Bhutanese Currency: Everything You Need To Know." Druk Asia.
4. "Bhutan Currency Guide." Bhutan Travelog.