As the official currency of the Kingdom of Bhutan, the Ngultrum (BTN) underpins every cash transaction across the country, making this guide essential for travelers seeking to navigate Bhutan’s unique “low-volume, high-value” tourism economy.
For students and researchers, understanding the Ngultrum’s history since its 1974 introduction and its subdivision into 100 chhertum offers key insights into Bhutan’s monetary sovereignty and its economic evolution.
Numismatists will value an in-depth look at Bhutan’s distinctive banknote imagery—from the Druk (thunder dragon) to iconic dzongs—and the variety of commemorative coin issues produced by the Royal Monetary Authority.
Planning a trip to the remote country of Bhutan, having a piece of basic knowledge about the Bhutanese currency should be on your priority list.
Bhutan’s currency is known as the Ngultrum. The unit of currency is the Ngultrum or BTN, which is equivalent to that of the Indian Currency, i.e., 1 Ngultrum =1 Rupee
Finally, businesses operating between Bhutan and India depend on the Ngultrum’s fixed 1:1 peg with the Indian Rupee for accurate pricing and supply-chain planning, underscoring why a clear, practical overview of Bhutan’s monetary system is indispensable.
Official Currency Overview
Bhutan’s currency system centers on the Ngultrum (Nu., ISO 4217: BTN), a sovereign tender subdivided into 100 chhertum and anchored in both tradition and modern monetary policy — all under the stewardship of the Royal Monetary Authority of Bhutan, established in 1982 and reconstituted by the Royal Monetary Authority Act of 2010 to serve as the nation’s central bank, mint, and financial regulator.
Name and ISO Code
- Currency Name: Ngultrum (Nu.)
- ISO 4217 Code: BTN (numeric code 064)
- Subdivision: 1 Ngultrum = 100 chhertum
- Symbol: Nu. (preceded by amount, e.g., Nu. 50)
| Feature | Detail |
|---|---|
| Currency Name | Ngultrum |
| ISO Code | BTN (064) |
| Symbol | Nu. |
| Subdivision | 100 chhertum |
| Minor Unit Name | Chhertum |
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Issuing Authority
- Institution: Royal Monetary Authority of Bhutan (RMA)
- Legal Foundation:
- Established under the Royal Monetary Authority Act of 1982
- Replaced by the Royal Monetary Authority Act of 2010, enhancing autonomy and expanding regulatory mandate
- Headquarters: Thimphu, Bhutan
- Key Functions:
- Currency Issuance & Minting: Sole authority to issue Ngultrum banknotes and coins
- Monetary Policy: Manages liquidity and interest-rate frameworks to maintain price stability
- Foreign Reserves & Exchange: Oversees Bhutan’s foreign currency reserves (approx. US$1.09 billion) and INR peg management
- Financial Regulation: Licenses and supervises banks and non-bank financial institutions under its 2010 Act mandate
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Historical Background
Before delving into the details, here’s a quick snapshot of Bhutan’s currency evolution: Prior to 1974, the Indian Rupee and locally minted naya paisa coins formed the backbone of everyday transactions in Bhutan.
On April 6, 1974, a traditional ceremony in Thimphu officially introduced the Ngultrum (Nu., BTN), cementing Bhutan’s monetary sovereignty and establishing a 1:1 peg with the Indian Rupee.
Since then, Bhutan has periodically updated its currency-series—issuing additional denominations in 1978, rolling out a new family of notes in 1986 under the Royal Monetary Authority, enhancing security features (watermarks, threads) in 2013, and releasing commemorative issues for national milestones such as the 1994 National Day and the 2011 Royal Wedding.
Pre-1974: Use of Indian Rupee and Early Naya Paisa Coins
Before Bhutan had its own sovereign currency, the Indian Rupee circulated freely alongside early Bhutanese coinage. Hammered silver and copper “rupiya” coins from the Cooch Behar mint were in use until the late 1920s.
In 1931, Bhutan introduced a bronze 1 paisa coin (dated 1928), and by 1950, nickel rupee coins were in circulation. The watershed moment came in 1957 with decimalization: the first “naya paisa” coins (1 naya paisa) were struck, followed by cupro-nickel 25 naya paisa, 50 naya paisa, and 1 rupee coins in 1966.
| Year | Coin Issue | Composition |
|---|---|---|
| 1931 | 1 Paisa (dated 1928) | Bronze |
| 1950 | Rupee coin | Nickel |
| 1957 | 1 Naya Paisa | Copper-nickel |
| 1966 | 25 & 50 Naya Paisa; 1 Rupee | Cupro-nickel |
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Launch of the Ngultrum: April 6, 1974
On April 6, 1974, Her Majesty’s government held a simple yet symbolic ceremony in Thimphu, where the first Ngultrum banknotes were unveiled and released into circulation (dailybhutan.com, Facebook).
The Ngultrum, denominated in 100 chhertum, was pegged at par to the Indian Rupee, ensuring stability for traders and travelers alike. Shortly thereafter, on June 2, 1974, the government issued the initial banknotes in denominations of Nu. 1, 5, and 10, followed by Nu. 2, 20, 50, and 100 in 1978.
Evolution: Redesigns, Security Upgrades & Commemorative Issues
Since its inaugural series, Bhutan’s currency has evolved to reflect both technological advances and national pride:
- 1978 Expansion: Introduction of Nu. 2, 20, 50, and 100 notes to meet growing transactional needs.
- 1986 RMA Series: Following the establishment of the Royal Monetary Authority’s operations in 1983, a completely new family of banknotes was issued in 1986, featuring updated designs and motifs.
- 2013 Security Overhaul: Modern security features—such as hybrid cotton/polymer substrates for lower denominations, multi-tone watermarks, and micro-text security threads—were introduced to combat counterfeiting.
- Commemorative Releases: Special editions mark national milestones:
- 1994: 500 Ngultrum note celebrating Bhutan’s 21st National Day.
- 2011: 100 Ngultrum “Royal Wedding” collector’s note, issued in limited folders.
| Year | Update Type | Details |
|---|---|---|
| 1978 | New Denominations | Added Nu. 2, 20, 50, 100 |
| 1986 | RMA Series Launch | Complete redesign under RMA, new family of notes |
| 2013 | Security Features | Hybrid substrates, enhanced watermarks, security threads |
| 1994 | Commemorative Note | 500 Ngultrum for 21st National Day (P-21) |
| 2011 | Royal Wedding Edition | 100 Ngultrum commemorative note (P-35), limited release |
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Denominations and Design Features
Bhutan’s currency system is defined by a clear set of banknotes and coin denominations, each reflecting national identity through distinctive design elements and advanced security features.
Banknotes are issued in eight denominations—from Nu. 1 up to Nu. 1,000—and portray symbols like the Druk (thunder dragon), revered dzongs, and the Wheel of Dharma, all printed on durable hybrid substrates with windowed security threads and multi-tone watermarks.
Coins meanwhile cover five chhertum values (5, 10, 20, 25, 50) plus a one-ngultrum piece, originally struck in aluminum, aluminum-bronze, and cupro-nickel in the 1974 series, then standardized to bronze and cupro-nickel after 1979.
Beyond everyday use, collectors prize limited commemorative coins, such as FAO and royal-wedding issues, documented in specialist catalogs like Foronum’s index.
Banknotes
- Denominations: Nu. 1, 5, 10, 20, 50, 100, 500, 1 000
- Design Elements:
- Druk (Thunder Dragon): Central motif symbolizing Bhutan’s identity
- National Landmarks: Historic dzongs (fortresses) like Simtokha and Punakha appear on the reverse sides
- Wheel of Dharma: Reflects Buddhist heritage, often flanked by dragons
- Security Features:
- Windowed Security Threads: Varying thread widths and inscriptions (“RMA”) on Nu. 100, 500, 1,000
- Multi-tone Watermarks & Micro-text: Denomination numerals and royal emblems embedded for anti-counterfeiting
- Hybrid Substrate: Combination of cotton and polymer components for enhanced durability
| Denomination | Primary Color | Obverse Motif | Reverse Landmark |
|---|---|---|---|
| Nu. 1 | Blue/Green | Druk & Wheel of Dharma | Simtokha Dzong |
| Nu. 5 | Yellow/Brown | Birds (Bja Tshering) | Paro Taktsang |
| Nu. 10 | Purple/Green | King Jigme Singye Wangchuck | Paro Rinpung Dzong |
| Nu. 20 | Yellow/Green | King Jigme Dorji Wangchuck | Punakha Dzong |
| Nu. 50 | Pink/Orange | King Jigme Khesar Namgyel | Trongsa Dzong |
| Nu. 100 | Green | Gems & Lotus Symbols | Tashichho Dzong |
| Nu. 500 | Orange/Pink | Ugyen Wangchuck with Raven Crown | Punakha Dzong |
| Nu. 1 000 | Red/Gold | King Jigme Khesar Namgyel | Tashichho Dzong |
4.2 Coins
- Denominations: Ch. 5, 10, 20, 25, 50; Nu. 1
- Initial 1974 Series:
- Aluminum Ch. 5 (square) and Ch. 10 (scalloped)
- Aluminum-bronze Ch. 20
- Cupro-nickel Ch. 25 and Nu. 1
- Post-1979 Standardization: Bronze for lower chhertums (5, 10) and cupro-nickel for Ch. 25, Ch. 50, Nu. 1
- Design Motifs:
- Agrarian Scenes: Man at work on Ch. 20, wheat sheaves, fish, and auspicious symbols
- Emblems & Inscriptions: Lesser coat of arms and Dzongkha legends promoting “Food for All” and national motto
- Commemoratives: Limited-run issues (e.g., FAO 30 Chhertum, royal anniversaries) sought by collector (en.foronum.com)
| Denomination | Material | Shape | Reverse Motif |
|---|---|---|---|
| Ch. 5 | Aluminum (1974) | Square | Lotus & Thunderbolt Emblem |
| Ch. 10 | Aluminum (1974) | Scalloped | Wheel of Dharma |
| Ch. 20 | Aluminum-bronze | Round | Man Working in Field |
| Ch. 25 | Cupro-nickel | Round | Golden Fishes of Good Fortune |
| Ch. 50 | Cupro-nickel | Round | Kite & Floral Patterns |
| Nu. 1 | Cupro-nickel | Round | Royal Emblem & National Motto |
This structured overview of Bhutan’s banknotes and coins highlights both functional circulation pieces and the rich cultural symbols embedded in their designs, crucial information for travelers, researchers, and numismatists alike.
Monetary Policy and Peg to the Indian Rupee
Bhutan’s monetary framework relies on a durable, one-to-one peg of the Ngultrum (BTN) to the Indian Rupee (INR), an arrangement upheld through regular interventions by the Royal Monetary Authority (RMA) to buy or sell foreign exchange as needed.
By anchoring domestic prices to India’s larger economy, Bhutan effectively imports India’s inflation path—studies show that roughly 66 % of Bhutan’s inflation is explained by movements in Indian price levels, while stabilizing import costs for a nation that conducts over 74 % of its trade with India.
Regionally, Nepal maintains a similar fixed‐rate regime, pegging the Nepalese Rupee (NPR) at NPR 160 = INR 100 (i.e., 1 INR = 1.6 NPR) since 1993, under the stewardship of Nepal Rastra Bank.
Fixed Peg Mechanism
- Parity Rate: 1 BTN = 1 INR, in place since the Ngultrum’s launch in 1974.
- RMA Interventions: The Royal Monetary Authority manages liquidity by purchasing or selling INR from its foreign reserves whenever market rates drift off parity.
- 5.2 Economic Impact
- Inflation Control: With a fixed peg, domestic price levels mirror India’s; approximately 66 % of Bhutan’s inflation is transmitted directly from Indian inflation.
- Trade Stability: By fixing BTN to INR, Bhutan shields importers from exchange‐rate volatility—a key benefit given that over 74 % of Bhutan’s merchandise trade is with India.
- Reserve Buffer: Bhutan’s gross foreign reserves exceed US $1.1 billion, covering roughly 11 months of imports, providing an ample cushion to defend the peg during periods of external pressure.
5.3 Regional Comparison
| Country | Peg Rate | Since | Central Bank |
|---|---|---|---|
| Bhutan | 1 BTN = 1 INR | 1974 | Royal Monetary Authority |
| Nepal | NPR 160 = INR 100 (1 INR = 1.6 NPR) | 1993 | Nepal Rastra Bank |
Note: Nepal’s peg at NPR 160 per 100 INR (i.e., 1.6 NPR per INR) was formally adopted in 1993 and remains a cornerstone of its monetary policy.
Below is a concise overview of key findings, followed by detailed subsections on how to check and interpret Bhutan-India exchange rates.
Exchange Rates and Conversion Tools
Although Bhutan officially maintains a one-to-one peg of the Ngultrum to the Indian Rupee (1 BTN = 1 INR) under its exchange-rate-targeting policy, real-time mid-market data reveal tiny deviations: as of May 25, 2025, Forbes Advisor quotes 1 BTN ≈ 0.9977 INR, while XE’s converter confirms near-par rates.
Conversely, Forbes Advisor also records 1 INR = 1.002313 BTN on the same date.
Platforms like Wise offer BTN↔INR conversions with short-term trend charts, and a six-month review shows a high of 1.0120 INR and a low of 0.98467 INR, averaging 1.0005 INR—underscoring remarkable stability.
Current Rate
- Bhutan’s monetary policy fixes the Ngultrum at par with the Indian Rupee (1 BTN = 1 INR) through regular interventions by the Royal Monetary Authority.
- Real-time mid-market data from Forbes Advisor shows 1 BTN ≈ 0.9977 INR as of May 25, 2025.
- Wise reciprocally quotes 1 INR = 1 BTN, indicating negligible fluctuation.
- Forbes Advisor also reports 1 INR = 1.002313 BTN on May 25, 2025.
Online Converters
- XE.com provides a live BTN→INR converter with continuously updated mid-market rates for travel and remittances.
- Forbes Advisor’s tool allows BTN↔INR conversions and displays both current rates and simple historical context.
- Wise offers BTN↔INR conversions alongside interactive charts showing rate changes over the past day, week, or month.
Historical Trends
| Period | Low (INR) | High (INR) | Average (INR) |
|---|---|---|---|
| Last 180 days | 0.98467 | 1.0120 | 1.0005 |
| Past week | 1.000 | 1.002 | — |
| Past 30 days | 0.9977 | 1.0081 | — |
- Over six months, the BTN/INR rate has ranged between 0.98467 and 1.0120, averaging almost exactly 1 INR per BTN
- Weekly swings are minimal—only ±0.2 % around parity—reflecting the RMA’s effective defense of the peg
- XE’s long-term chart shows virtually no meaningful drift over the years thanks to the exchange-rate-targeting regime
This combination of official parity, live converters, and transparent historical data ensures travelers, businesses, and researchers can plan and budget in Bhutan with confidence.
Practical Usage for Travelers
Before you set foot in Bhutan, knowing where and how to handle Ngultrum is crucial for a smooth journey. Travelers can exchange major foreign currencies—like USD, EUR, and INR—at the Bank of Bhutan counter at Paro International Airport immediately upon arrival.
In cities such as Thimphu and Paro, BoB, Bhutan National Bank (BNB), and Druk PNB branches offer competitive rates, while authorized money changers in town centers provide additional options.
ATMs dispense Ngultrum in major hubs like Thimphu, Paro, and Punakha, though machines outside these areas can be scarce and occasionally offline.
For those embracing cashless transactions, the Royal Monetary Authority’s Bhutan Quick Response Code (Bhutan QR) system and NPCI’s UPI-based BHIM QR payments are increasingly accepted at shops, hotels, and tourist sites, with RuPay integration further widening digital payment reach.
When handling notes, always verify bona fides: genuine Ngultrum features clear multi-tone watermarks, embedded security threads, tactile intaglio printing, and holographic elements to help you spot counterfeits by sight and touch.
Currency Exchange Locations
- Paro International Airport: The Bank of Bhutan branch here serves only foreign passengers and accepts USD, GBP, EUR, JPY, CHF, HKD, CAD, AUD, SGD, DKK, SEK, and NOK at RMA-set rates.
- Major Banks: BoB, BNB, and Druk PNB in Thimphu, Paro, and other regional centers offer Ngultrum exchange with minimal fees.
- Authorized Money Changers: Licensed changers in Thimphu and Paro provide flexibility in smaller amounts, though rates may slightly vary.
- Hotels & Travel Agencies: Select upscale hotels and tour operators that extend forex services—ideal for top-up cash without an extra trip to a bank.
| Exchange Provider | Location(s) | Notes |
|---|---|---|
| Bank of Bhutan (BoB) branch | Paro International Airport | Only for foreign currency; fixed RMA rates |
| Bank of Bhutan, BNB, Druk PNB | Thimphu, Paro, Punakha | Competitive rates; branch hours vary |
| Authorized Money Changers | Thimphu & Paro | Small-amount flexibility; watch for rate variation |
| Select Hotels & Tour Agencies | Major towns | Convenient top-up; may include service fees |
ATMs and Digital Payments
- ATM Network: ATMs are reliable in Thimphu, Paro, and Punakha but can be sparse and prone to downtime outside urban centers; daily withdrawal limits apply, so plan accordingly.
- Card Acceptance: RuPay, Visa, and MasterCard are accepted at most ATMs and larger hotels; RuPay cards settle in INR directly via RMA-integrated switches.
- Mobile & QR Payments: The Bhutan QR scheme—launched by RMA and partnered banks—facilitates merchant payments via a standardized QR code.
- UPI Integration: In July 2021, NPCI’s BHIM UPI QR was introduced, making Bhutan the first country beyond India to adopt UPI standards, benefiting tourists and locals alike.
Avoiding Counterfeits
- Watermarks & Threads: Hold notes to light to confirm the multi-tone watermark (royal emblem/Druk) and embedded “RMA” security thread.
- Tactile Printing: Genuine Ngultrum uses intaglio printing—raised ink you can feel, especially on high-value notes.
- Holograms & Color-Shifting Ink: Look for shifting hues on value numerals and dragon motifs when tilting the note.
- Authorized Exchange: Always transact at RMA-approved banks or changers to minimize counterfeit risk.
Customs, Limits & Regulations
Before detailing import/export thresholds and documentation, here’s a concise summary of Bhutan’s currency regulations: Bhutan permits travelers to carry up to USD 10,000 (or equivalent) in foreign currency into or out of the country without declaration, while any amount above this must be declared at customs.
For the Ngultrum itself, individuals may import or export up to Nu. 5 000 per instance without declaration—amounts beyond this require declaration and, for exports, prior RMA approval.
All foreign-exchange transactions (including conversion of foreign currency to Ngultrum and vice versa) require presentation of valid identification (passport or CID), proof of onward/return travel, and completion of bank-issued forms detailing traveler particulars.
Travelers must also fill out a Customs Declaration Form on arrival if carrying amounts above the threshold.
Import/Export Rules
- Foreign Currency Threshold: Any person entering or leaving Bhutan with foreign cash, bearer negotiable instruments, or both, exceeding USD 10,000 (or equivalent) must declare the total amount to Customs at the port of entry or exit.
- Ngultrum (Local Currency) Limit: Travelers may carry up to Nu. 5,000 of Bhutanese Ngultrum into or out of the country per instance without declaration; amounts beyond Nu. 5,000 require a declaration to Customs.
- Export Approval: Any export of local currency above the exempted amount. The 5,000 limit requires prior authorization from the Royal Monetary Authority of Bhutan.
- Additional Approval for Non-Standard Transactions: Import or export of foreign currencies not expressly permitted (e.g., other convertible currencies) may be conducted only with prior approval from the RMA under Section 117 of the RMA Act 2010.
- Customs Classification: While currency rules are managed by the RMA, classification of goods (including coinage beyond baggage allowances) follows the Bhutan Trade Classification & Tariff Schedule under the Department of Revenue & Customs (drc.gov.bt).
| Currency Type | Free Allowance | Declaration Required Above | Prior Approval for Export |
|---|---|---|---|
| Foreign Currency | > USD 10,000 equiv. | > USD 10 000 equiv. | Not applicable |
| Bhutanese Ngultrum | Up to Nu. 5 000 | > Nu. 5 000 | Yes, RMA authorization |
Documentation
- Valid Identification:
- Bhutanese nationals use a CID card; non-Bhutanese must present a passport (valid for at least six months beyond travel dates).
- Proof of Travel:
- Copy of confirmed onward/return air ticket or valid visa/entry permit must accompany any currency exchange or declaration.
- Bank/Money-Changer Forms:
- Travelers must complete bank-issued foreign-exchange forms, detailing name, passport/CID number, date of travel, fare amount, and currency type/amount.
- Customs Declaration Form:
- On arrival/departure, if carrying amounts above the defined thresholds (USD 10 000 or Nu. 5 000), visitors must fill out a Customs Declaration Form and submit it to the Customs officer.
- Supporting Documents for Special Cases:
- Non-convertible currency transactions, large export requests, or non-standard currency dealings require additional RMA notifications or circulars per Foreign Exchange Operational Guidelines.
This framework ensures clarity on the quantities you can legally carry, the steps to declare amounts above the free limits, and the exact paperwork you’ll need—essential for a hassle-free experience when handling money in Bhutan.
Numismatics and Collecting
Bhutan’s numismatic scene offers a fascinating window into the kingdom’s cultural milestones and sovereign identity.
Collectors prize limited-run commemorative notes—most notably the 1994 500 Ngultrum issue marking the first king’s coronation and the 2011 100 Ngultrum “Royal Wedding” edition—while specialist catalogues and RMA archives ensure proper authentication.
Below, you’ll find a breakdown of key collectible issues and expert tips on verifying genuine Bhutanese currency.
Collectible Issues
The Royal Monetary Authority has periodically issued special-edition banknotes to celebrate national events and royal milestones.
| Issue Code | Year | Denomination | Occasion | Key Features |
|---|---|---|---|---|
| P-21 | 1994 | 500 Ngultrum | 21st National Day / Coronation Anniversary | Portrait of King Ugyen Wangchuck; back shows Punakha Dzong; red-orange palette; De La Rue printing; limited mintage. |
| P-35 | 2011 | 100 Ngultrum | Royal Wedding of King Jigme Khesar Namgyel & Jetsun Pema | Royal wedding logo (khorlo, dhar scarves, lotus); orange-brown-red hues; sold with presentation folder. |
| P-37 | 2016 | 100 Ngultrum | Golden Jubilee Commemorative (King’s 10th anniversary) | Features King and Queen portraits against mountain and dragon motifs; yellow-gold accents; watermark of King’s seal. |
Collector’s Tip: Beyond banknotes, the RMA also issues gold and silver coins—such as the Fifth King Coronation gold coin—listed on the RMA website’s Commemorative Items page.
Authentication Tips
Ensuring authenticity is critical, as rare issues command premiums on the secondary market.
- Official RMA Catalogues:
- The RMA publishes detailed specifications (dimensions, watermarks, signature varieties) for each issue; compare your note against the RMA’s listings.
- BanknoteIndex & PMG Guides:
- BanknoteIndex provides high-resolution scans and serial-number ranges for commemoratives (e.g., P-35 entries).
- PMG’s World Price Guide confirms design details (watermarks, print dates) and offers authentication checklists for the 1994 500 Ngultrum issue.
- Numismatic Databases:
- Numista catalogs user-submitted images and mintage data, helping verify metal composition and color schemes for coins and notes alike.
- Trusted Dealers & Auction Houses:
- Banknote World and CoinBazzar frequently offer certified uncirculated commemorative sets, complete with provenance documentation.
- Always request a certificate of authenticity or third-party grading when acquiring high-value specimens.
- Physical Inspection Techniques:
- Watermarks & Threads: Hold notes to light to reveal multi-tone watermarks (royal emblems, Druk) and “RMA” security threads.
- Raised Intaglio Printing: Feel for embossed areas, especially on portraits and value numerals.
- Micro-printing & Holograms: Use a loupe to inspect micro-text along borders and tilting tests for color-shifting inks.
By combining official RMA resources, specialist catalogues, and careful hands-on examination, collectors can confidently build and authenticate a portfolio of Bhutan’s most captivating currency issues.
Digital Innovations & Future Outlook
Bhutan is rapidly modernizing its financial ecosystem through three key innovations: first, e-payment adoption has surged—mobile banking now accounts for over half of all domestic transactions, and QR-code payments grew by more than 120 % year-on-year in Q1 2023, with 20.78 million QR transactions valued at Nu. 19.76 billion.
Second, leveraging its 100 % hydropower grid, Bhutan mines “green” cryptocurrencies, generating 55–75 BTC (US$ $3.6–4.9 million) weekly and amassing over 12,206 BTC (US$ $1.1 billion) since 2019.
Finally, the Royal Monetary Authority is piloting a digital Ngultrum CBDC with Ripple Labs—an energy-efficient ledger platform that aims to raise financial inclusion to 85 %, cut cross-border remittance costs by 40–60 %, and uphold Bhutan’s carbon-negative mandate.
E-Payment Adoption
- RMA 4Q 2023 Report: Mobile banking made up 53.69 % of total transaction volume, followed by Bhutan QR-code at 39.97 %.
- Q1 2023 Growth: QR-code payments reached 20.78 million transactions (Nu. 19.76 billion), representing 55.83 % of mobile banking volume and 15.71 % of value. Compared to Q1 2022, volume jumped 120.73 % and value 126.80 %.
- Merchant Expansion: 4,849 new QR-code merchants onboarded in Q1 2023, bringing the total to 69,505—a 7.50 % increase from Q4 2022.
| Metric | Q1 2022 | Q1 2023 | % Change |
|---|---|---|---|
| QR Transactions (volume) | 9.41 M | 20.78 M | +120.73 % |
| QR Transactions (value, Nu.) | 8.70 bn | 19.76 bn | +126.80 % |
| QR-Code Merchant Count | 64 656 | 69 505 | +7.50 % |
| Share of Mobile Banking (volume) | — | 55.83 % | — |
| Share of Mobile Banking (value) | — | 15.71 % | — |
10.2 Green Cryptocurrency
- Hydropower Mining Model: Since 2019, Bhutan’s sovereign wealth fund has used surplus hydropower to run energy-efficient supercomputers for “green” crypto mining.
- Weekly Output: 55–75 BTC mined per week (US$ $3.6–4.9 million) as of late 2024.
- Accumulated Holdings: Over 12,206 BTC held (worth > US$ $1 billion) by November 15, 2024.
- Capital Investment: US$ $539 million invested in mining infrastructure (July 2021–June 2023).
- Future Capacity Targets: Plan to scale crypto-mining capacity to 600 MW by 2025 and expand hydropower generation to 15 GW by 2040.
| Metric | Value |
|---|---|
| Weekly BTC Production | 55–75 BTC |
| Weekly Revenue (USD) | $3.6–4.9 million |
| Total BTC Holdings | 12 206 BTC |
| BTC Holding Value (USD) | >$1 billion |
| Investment (Jul ’21–Jun ’23) | $539 million |
| Target Mining Capacity (2025) | 600 MW |
| Hydropower Goal (2040) | 15 GW |
CBDC Prospects
- Pilot Partnership: In September 2021, RMA teamed with Ripple Labs to pilot a digital Ngultrum on Ripple’s energy-efficient CBDC Private Ledger—120,000× more efficient than proof-of-work blockchains.
- Key Objectives:
- Raise financial inclusion to 85 % by 2023.
- Streamline remittances (3 % of GDP) with faster, cheaper cross-border transfers.
- Uphold carbon-negative goals via carbon-neutral blockchain infrastructure.
- Roadmap (2021–2026):
- Needs Assessment (2021–2023): Identify retail, wholesale, and cross-border use cases.
- Design & PoC (2023–2024): Build a permissioned ledger, test interoperability with GIFT and e-PEMS systems.
- Pilot Launch (2024–2026): Controlled trials for security, scalability, and UX.
- Nationwide Rollout (Post-2026): Gradual expansion to all citizens.
- Projected Benefits:
- 40–60 % reduction in cross-border transaction fees.
- Enhanced financial inclusion and resilience in a remittance-dependent economy.
This triad of digital payment growth, green crypto utilization, and CBDC piloting positions Bhutan as a global exemplar in leveraging clean energy for financial innovation, balancing technological advancement with its commitment to gross national happiness and environmental stewardship.
Comparison with Neighboring Currencies
Below is a concise comparison of Bhutan’s Ngultrum against its neighbouring currencies—the Nepalese Rupee, the Indian Rupee, and the Bangladeshi Taka—highlighting their exchange-rate regimes, stability profiles, and key usage differences.
Although Bhutan’s Ngultrum (BTN) is pegged 1:1 to the Indian Rupee, its South Asian neighbours follow distinct arrangements. Nepal fixes its currency at NPR 160 = INR 100 under a conventional peg established in 1993, ensuring minimal exchange‐rate volatility along the open Bhutan–Nepal border.
India’s own Rupee floats in a managed-float regime: the RBI intervenes to smooth swings, resulting in narrow trading bands against the US Dollar (e.g., ₹80.88–83.42 from Dec 2022 to Oct 2023) and among the lowest volatility rates in Asia.
By contrast, Bangladesh shifted to a crawling peg against the USD on 8 May 2024, tolerating gradual Taka depreciation (15.2 % nominal in FY23) and higher annual inflation (≈9.2 % in Apr 2025), reflecting greater exchange‐rate flexibility but also elevated price pressures.
| Currency | Regime | Anchor/Peg | Volatility & Key Metrics |
|---|---|---|---|
| Nepalese Rupee (NPR) | Conventional peg | 160 NPR = 100 INR (since 1993) | Stable: virtually no intraday swings; legal tender only in Nepal |
| Indian Rupee (INR) | Managed float | Market‐determined, RBI “stabilises” | Traded ₹80.88–83.42/USD (Dec 2022–Oct 2023); low volatility by regional standards |
| Bangladeshi Taka (BDT) | Crawling peg (to USD) | Gradual glide vs. USD (since 8 May 2024) | 15.2 % depreciation FY23; inflation 9.17 % (Apr 2025); managed gradual adjustment |
Nepalese Rupee (NPR): Peg and Usage Differences
- Fixed Peg: The NPR has been pegged at 160 NPR = 100 INR under Nepal Rastra Bank policy since 1993, minimizing exchange‐rate fluctuations and facilitating cross-border trade with India.
- Legal Tender Scope: While the peg simplifies pricing, the NPR is legal tender exclusively within Nepal; it is not accepted in Bhutan, where the Ngultrum (also pegged 1:1 to INR) is used for all domestic transactions.
- Inflation & Convertibility: Nepal’s inflation rate stood at 3.6 % in 2021, reflecting macro-stability under the peg, though multiple rates (official, private‐bank, black-market) sometimes coexist for foreign exchange.
Indian Rupee (INR) & Bangladeshi Taka (BDT): Regional Stability Contrasts
Indian Rupee (INR)
- Managed Float: India operates a “managed floating” system—market forces set the rate, but the RBI steps in to limit excessive volatility, keeping the Rupee in a narrow band (e.g., ₹80.88–83.42/USD between Dec 2022 and Oct 2023).
- Low Volatility: These interventions have resulted in one of the lowest forex volatilities among Asian currencies, second only to fully pegged regimes, and support stable import costs and export competitiveness.
Bangladeshi Taka (BDT)
- Crawling Peg: Since 8 May 2024, Bangladesh Bank adopted a crawling peg to the USD, allowing the Taka to depreciate in small, preannounced increments—an approach designed to absorb external shocks gradually.
- Higher Volatility & Inflation: In FY23, the Taka depreciated by 15.2 % against the USD, and annual CPI inflation was 9.17 % as of April 2025—markedly higher than Bhutan’s imports-driven inflation (≈3 %).
- Policy Rationale: This regime balances the need for external competitiveness with inflation control, though it exposes consumers to greater price fluctuations compared to Bhutan’s static peg.
This comparative snapshot underscores Bhutan’s exceptionally stable currency environment—anchored firmly to the Indian Rupee—versus its neighbours’ varying degrees of exchange‐rate flexibility and associated economic impacts.
Common Misconceptions
Despite its one-to-one peg to the Indian Rupee, Bhutan’s currency landscape often generates confusion. Many travelers assume Indian banknotes are accepted everywhere, while complex financial terms like “peg” and “spread” can sound intimidating.
Below, we debunk two of the most common misconceptions, supported by authoritative sources, to help you navigate Bhutan’s Ngultrum system with confidence.
INR Everywhere?
- Widespread Acceptance, With Exceptions: Although the Indian Rupee (INR) circulates freely in Bhutan thanks to the currency peg, only certain denominations are officially accepted. Travelers can use ₹1, ₹2, ₹5, ₹10, ₹20, ₹50, and ₹100 notes throughout the country.
- High-Value Notes Often Rejected: To guard against counterfeits, Bhutanese banks and businesses typically refuse ₹500 and ₹2,000 notes. Similarly, some changers decline ₹1,000 notes as well.
- Ngultrum is King for Small Transactions: Outside major hotels and urban centers, merchants overwhelmingly prefer Ngultrum—especially for small purchases and local markets—so carry sufficient BTN cash to avoid last-minute hassles.
- Legal Tender Status: Legally, the Ngultrum is Bhutan’s sole official currency, while the INR’s acceptance remains a practical convenience rather than a constitutional right; INR is de facto legal tender, per the Royal Monetary Authority arrangement and international practice.
| INR Denomination | Accepted? | Notes |
|---|---|---|
| ₹1–₹100 | Yes | Universally accepted at par |
| ₹500, ₹1 000 | No | Often refused due to counterfeit concerns |
| ₹2 000 | No | Declined almost everywhere |
Technical Jargon: Simplified
- Currency Peg: A “peg” means BTN is kept at exactly 1:1 with INR. The Royal Monetary Authority buys or sells reserves to maintain this fixed rate (Investopedia).
- Exchange Rate: Simply the price of one currency in terms of another—e.g., how many BTN for 1 USD.
- Mid-Market Rate: Think of it as the “fair” rate—you’ll see it quoted online; banks add a small markup when you exchange.
- Spread: The tiny margin between what a bank pays you to sell your currency and what it charges you to buy it, usually around 1–3 %.
- Conversion Fee: A straightforward service charge by banks or money-changers (often 0.5–2 % of the amount exchanged).
| Term | Plain-English Definition |
|---|---|
| Currency Peg | An extra percentage (0.5–2 %) cis charged on top of the rate for the service |
| Exchange Rate | The value of one currency expressed in another |
| Mid-Market Rate | The midpoint between a bank’s buy and sell prices—your “fair” rate |
| Spread | An extra percentage (0.5–2 %) cis charged on top of the rate for the service |
| Conversion Fee | An extra percentage (0.5–2 %) charged on top of the rate for the service |
By understanding these nuances—when INR is welcome, when it’s not, and what those financial buzzwords really mean—you’ll be fully prepared to handle money in Bhutan like a local.
What is the Currency of Bhutan?
Ngultrum is the official currency of Bhutan. The unit of currency is the Nu or BTN, which is equivalent to that of the Indian Currency.
Ngultrum is the officially accepted currency in Bhutan for all trades and businesses. As in the Western world, 100 cents make up 1$. Likewise, in Bhutan, 100 Chhertum make 1 Ngultrum.
The term “Ngultrum” is derived from the word “Ngul”, meaning silver in the Bhutanese Language (Dzongkha), and “trum”, from a Hindi word used for money.
In 1960, the government of Bhutan focussed on growing the economy of the country, monetary reforms took place in 1974.
In 1974, the Royal Government of Bhutan introduced the Bhutanese Ngultrum, where 100 Chhetrums are equal to 1 Ngultrum.
The money of Bhutan or the currency pegged at par with the Indian rupees which is continuing at this time of the year.
Now the question arises,
Why Bhutanese currency equal to Indian rupees?
That is to say, the country is a smaller nation without major exports, and 40% of the country’s economy comes from India in exchange for hydroelectric power.
Also, the diplomatic relations between both countries are friendly enough to maintain the value of INR and BTN.
Currently, 1 Bhutanese Ngultrum (Nu) is equal to 1 Indian Rupee (INR).
Bhutan Currency Notes
At present, the BTN 1, BTN 5, BTN 10, BTN 20, BTN 50, BTN 100, BTN 500, and BTN 1000 currency notes come in 8 variations and are legally accepted in the country.
All the notes have something imprinted on them, which is related to the Bhutanese Culture. Whereas, the backside of the notes has a picture of Dzong.
Like on the BTN 1000 note, the front side has a picture of the 5th King of Bhutan, i.e., King Jigme Khesar Namgyel Wangchuck.
Bhutan Currency Coins
BTN 0.20, BTN 0.25, BTN 0.5, BTN 1, BTN 5 and BTN 10 value coins are also present in the country. But as of now coins or “Chhetrum” are not widely used by the locals.
In addition, BTN 0.20 or Ch. 20 has a print of a man working in the field, and on the reverse side, a lesser version of the Bhutan Emblem and the value of the coin is written.
Likewise, on BTN 0.25 or Ch. 25, golden fishes of good fortune are imprinted on the obverse and a double diamond thunderbolt on the reverse side.
The same goes with the BTN 0.5 or Ch. 50 and BTN 1 or Nu. 1, treasure vase (one of the 8 revered Buddhist symbols) and coats of arms, i.e., the Bhutan Emblem are imprinted respectively.
As a result, every coin carries its own identity with all the Bhutanese culture and tradition.
Exchange rate of Bhutanese Currency with Indian Rupee, Dollar, and Euro
To clarify, the exchange rate of the currency varies based on different factors. Like in every country, the currency floats.
At present (August 2019), 1 Bhutanese Ngultrum (Nu) is equal to 1 Indian Rupee, and 100 USD is equal to 7200 Nu. Check the current rate here.
In the same way, the Western country currency, 100 Euro, is equal to 7800 Nu.
Foreign Currency Exchange in Bhutan (For Foreigners)
If you’re entering Bhutan by air, foreign currencies can be exchanged at the Paro Airport’s exchange desk.
In the first place, currencies that can be exchanged into Ngultrum are the US Dollar, Pound, Euro, Canadian Dollar, Japanese Yen, Swiss Franc, Hong Kong Dollar, Australian Dollar, and Singapore Dollar.
Just make sure to carry lower denomination notes as they can be easily exchanged at the counter and will consume less time in the process.
Besides, Bank of Bhutan branches in Paro and Thimphu, the capital city of Bhutan, can also be considered for the exchange of foreign currency notes. Likewise, there are a few hotels as well where you can try exchanging foreign currency for local currency.
Tip: Please use both hands while giving and taking money, just a Bhutanese tradition.
Credit Cards and ATMs in Bhutan
Like any other country, Bhutan has an ATM card facility, but it is not as advanced as those in other countries. Being a small kingdom, bank services are quite limited.
Cash is widely accepted all over the country. Credit cards are accepted only in hotels, resorts, and expensive handicraft shops. But likely you’ll have to pay a 5% surcharge for the service.
How much money do I carry while visiting Bhutan?
Bhutan is a small Himalayan Kingdom, and transportation is costly, so traveling to Bhutan is a bit expensive. Day to day things are at higher prices because of the supply.
So now you know the value of Ngultrum, assume the expense of Nu. 600-700 per person daily, which includes food and other basic needs.
Generally, for foreigners, the whole trip is planned and paid for in advance, and the tour operator takes care of your traveling and staying expenses. Only for the basic needs, the tourist has to take care of their own.
Above all, the currency of Bhutan is not accepted in any other country. So, before leaving Bhutan, make sure to exchange all your left Ngultrum for your basic currency.
Shopping in Bhutan
Eventually, when you’re visiting Bhutan, you might be interested in doing some shopping out there.
Who doesn’t love souvenirs? Though Bhutan is known for its tradition and culture, selling local products is the essential thing you must spend your money on.
For instance, Bhutanese Handicrafts like wooden bowls and cups, bamboo products, woven fabrics, jackets, and handmade paper are a few of the items you can spend the currency in Bhutan.
Also, handwoven textiles woven from cotton and silk are famous in the country.
Apart from that, gold and silver jewelry is also another type of souvenir you can go for.
As a matter of fact, you can save some money on Bhutan or the Bhutan currency as a memory to stay with if you belong to that currency collection category.
Since Bhutan is a Buddhist country, paintings & sculptures of Buddha and other Buddhist Heritage are popular among tourists.
What’re you waiting for now?
Plan a trip to Bhutan and make sure to read our other informative articles on the beautiful country “Bhutan. Still, have a doubt about how to travel to this beautiful country, check here.
Happy Journey!
Also Read: Travel Requirements and Visa Formalities to Visit Bhutan
Frequently Asked Questions
Here’s a concise FAQ section addressing common currency questions for travelers, students, and numismatists visiting Bhutan:
Bhutan accepts Indian Rupees de facto alongside its Ngultrum, but only lower denominations (₹1–₹100) circulate freely; higher-value notes are frequently refused.
For optimal exchange rates, use licensed banks and authorized bureaus in Paro, Thimphu, and other major towns rather than airport or hotel kiosks. While ATMs in urban centers generally perform reliably, machines in rural areas can be scarce or offline, so always carry backup cash.
To verify genuine Ngultrum notes, employ the Royal Monetary Authority’s “look–feel–tilt” method—checking watermarks, security threads, and intaglio printing—per official RMA guidelines.
Can I pay in INR (Indian Currency) throughout Bhutan?
Yes, Indian Rupees are widely accepted at par with Ngultrum, especially denominations ₹1, ₹2, ₹5, ₹10, ₹20, ₹50, and ₹100. However, higher-value notes (₹500, ₹ 1,000, ₹ 2,000) are often refused by banks and merchants due to counterfeit concerns.
What’s the best method to exchange funds?
- Banks & Licensed Bureaus: Exchange at Bank of Bhutan, Bhutan National Bank, Druk PNB, or authorized money changers in Paro, Thimphu, and Punakha for competitive mid-market rates with minimal fees.
- Avoid Airports & Hotels: Airport and hotel counters offer convenience but apply higher markups and poor rates; use these only for small emergency amounts.
- Travel Money Cards: Preload a Wise or similar travel card to lock in mid-market rates and reduce cash-handling risks.
Are rural ATMs reliable?
- Urban Reliability: ATMs in Thimphu, Paro, and Punakha generally dispense Ngultrum reliably during banking hours.
- Rural Limitations: Outside major hubs, ATM networks are sparse and prone to downtime; some machines run on outdated magnetic-stripe technology that may not accept certain foreign cards.
- Backup Cash: Carry adequate Ngultrum cash when venturing into remote regions to avoid being stranded without funds.
How do I verify genuine Ngultrum notes?
- Look–Feel–Tilt Method: Follow the RMA’s official guide to inspect banknotes for multi-tone watermarks and embedded “RMA” security threads.
- Intaglio Printing: Genuine notes feature raised, tactile printing on portraits and denomination numerals—run your fingers over these areas to confirm.
- RMA Alerts: Stay updated on counterfeit warnings published by the Royal Monetary Authority and consult authorized dealers if in doubt.
Can I use USD in Bhutan?
Foreign currencies are only accepted at some hotels and resorts. It’s better to convert the USD to the Bhutanese Currency.
Can I use Indian Debit Cards in Bhutan?
Yes, you can use the Indian Debit Card in Bhutan for ATM transactions, depending on the international transactions facility activated on your card.
In just under five decades, the Ngultrum has evolved from its ceremonial launch on April 6, 1974, into a fully sovereign currency rooted in Bhutan’s cultural identity and economic stability.
Today, it’s one-to-one peg with the Indian Rupee—vigilantly maintained by the Royal Monetary Authority—ensures price stability and seamless cross-border trade, while growing digital payment platforms are charting the Ngultrum’s next chapter.
As you plan your Bhutan adventure, don’t forget to explore the vibrant streets and sacred sites of Thimphu—read our related articles on Top Attractions in Thimphu and Bhutan Travel Tips for a seamless journey!
