Halt in Bhutan currency transaction affects trade

Halt in Bhutan currency transaction affects trade

14 March 2012

ALIPURDUAR, 14 MARCH: The Bhutanese government's crackdown on the use of its currency by Indians has severely jolted trading in the Dooars.
The Royal Monetary Authority of Bhutan in an 8 March circular ordered the closure of all deposit accounts in the names of non-resident foreigners by 15 March, and limited the release of Indian rupees in cash to Bhutanese nationals via commercial banks to Rs 10,000 per day, and Rs 50,000 per month per person. A considerable part of trade is conducted in the Bhutanese currency in the region, owing to the open-border trade and absence of currency exchange counters. The Bhutanese ngultrum being pegged at par with the Indian rupee made private trade easier, particularly in the Indian towns bordering Bhutan.
Mr Prasenjit Dey, secretary of the Alipurduar Chamber of Commerce and Industries, said business in the Dooars, in general, had slumped by 40 per cent. "The loss is greater in towns bordering Bhutan," Mr Dey said. "Here, the fall is around 80 per cent. We have already drawn the attention of the Jalpaiguri district authority and even of the Union finance minister."
"This, on one hand, has left Indian traders in the region with a huge amount of Bhutanese currency which cannot be exchanged and, on the other, it has led to a shortage in Indian currency in the region,” a traders said. sns