What is Bhutanese Ngultrum (BTN)?

Bhutanese Ngultrum (BTN)

The Bhutanese Ngultrum (BTN) is subdivided into 100 chhertum, although chhertum coins are rarely used in everyday transactions. The currency symbol for the Ngultrum is often represented as 'Nu.' and is utilized throughout the nation for all forms of economic exchange, including goods and services.

Introduced in 1974, the Ngultrum was initially issued in both coin and paper forms, with coins typically minted in denominations of 1, 5, 10, 20, 50, and 100 Ngultrum, while paper notes are available in 1, 5, 10, 20, 50, 100, 500, and 1000 Ngultrum denominations. The notes are characterized by their vibrant colors and intricate designs, often featuring important cultural symbols, historical figures, and images representing Bhutanese traditions.

The pegging of the Ngultrum to the Indian Rupee allows for a stable currency exchange rate, which is crucial for Bhutan's economy, as it relies heavily on imports from India. This relationship also aids in maintaining inflation levels and ensuring economic stability within the Kingdom. As a result, the Ngultrum is an essential part of Bhutan's monetary policy and economic strategy.

In recent years, the Bhutanese government has focused on promoting the use of the Ngultrum as part of its efforts to enhance national identity and economic independence. Despite its close ties to the Indian economy, Bhutan aims to strengthen its currency and develop a more self-sufficient economic framework.

The Ngultrum is widely accepted throughout Bhutan, including in rural areas where cash transactions are prevalent. However, electronic banking and digital payment systems are becoming increasingly popular, particularly in urban centers, reflecting a shift towards modern financial practices.

Tourists visiting Bhutan can exchange their foreign currency for Ngultrum at banks, authorized currency exchange centers, and hotels. It is advisable for travelers to carry some cash, as not all establishments accept credit cards, especially in remote regions.

Overall, the Bhutanese Ngultrum serves as a vital tool for facilitating economic transactions within Bhutan, supporting its unique culture, and contributing to the nation’s development goals.