The Nobel laureate said that Bhutan’s USD reserves is too high with low yields creating more debt through rupee borrowings and that government deposits in financial institutions fuels credit growth Noble laureate Professor Joseph Stiglitz pointed out weaknesses in Bhutan’s monetary (banking and financial regulation) and fiscal (government expenditure and …
Read More »Change in import method will not affect vegetable vendors
The announcement, of the Food Corporation of Bhutan (FCB) as the wholesale agent for all the vegetable vendors was a cause for concern among the vendors who are already worried over the Royal Monetary Authority (RMA)’s decision to stop issuing Indian Rupee from June first week. Lyonchen Jigmi Y. Thinley, …
Read More »Looking toward mega projects as the last messiah to solve the country’s INR crisis
The government in the midst of Rupee crunch is banking upon the long term impacts of mega projects like the Education City, the Amo Chhu Township, among other projects to ease the INR crunches. With the DHI INFRA spearheading these projects, The Bhutanese spoke to its CEO, Kinga Tshering on …
Read More »BTN depreciates by 20%
The INR crunch has brought the value of the BTN down by 20%. This means that Nu 100 is equivalent to Rs 80. People are now willing to pay an extra 20% BTN in order to get supplies at the border towns. There are two factors determining this: one is …
Read More »Rupee crisis to have long-term impact on Bhutan’s socio-economic development
The government task force report on the rupee shortage has predicted a grave economic future for Bhutan if the rupee crisis continues unabated, impacting millennium developmental goals, socio-economic development, external debt servicing, dollar reserves and trade balance. After the Financial Year (FY) 2012-2013, the convertible currency or dollar reserves of …
Read More »Understanding the Rupee Report
The Rupee Shortage Task force report submitted on 5th March 2012 is overall a comprehensive report that gives dire warnings if measures both short term and long term are not taken to curb the crisis. The strength of the report is indisputable facts and figures that show that the Bhutanese …
Read More »Overbilling creeps into border towns
Time and again the Royal Monetary Authority (RMA) has been requesting the public to refrain from dishonoring the INR informal exchange but each time a new problem crops up. This time, the practice of overbilling for goods is creeping into border towns. Overbilling means invoicing in excess of prices or …
Read More »Ten days left for vegetable ban, concerned authorities gearing up
The Prime Minister, Lyonchen Jigmi Y Thinley in recently stated on national television that the government will stop the import of vegetables from 5 May. Ten days remain before the actual halt. However, the decision has invited questions and skepticism from various quarters on its timeliness and feasibility. The month …
Read More »Now the crisis is in the kitchen
Bhutanese kitchens are getting harder by the day to run. From imported rice to imported vegetables to imported meat, the buying of groceries till it is laid out on the table ready to consume is one mad cycle. Especially with the country facing an economic crisis which could have …
Read More »Non-resident foreigners’ bank accounts in country is money laundering: RMA Governor
He added that closing the accounts was always a priority Earlier this week, the RoyalMonetary Authority(RMA) Governor, duringa meeting with about 150 representatives from the private sector, made it clear that Indian businessmen across the border holding bank accounts in Bhutan was not legal and closing these accounts had remained a priority ever since the central …
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