Ngultrum to the rescue in bordering towns
Bordering towns in Assam and West Bengal started accepting Ngultrum
The Indian rupee 500 and 1,000 notes may have lost it legal tender status in Bhutan, but the Ngultrum has come to the rescue in some bordering town of Assam and West Bengal.
According to local Indian media report, Bhutanese currency is being reportedly used as legal tender in parts of Assam. One media, The North East Today, reported that while Bhutan currency is used in normal times also, its use is very limited and mostly confined for dealings across the border. “But local people told television channels that they are now being compelled to use Bhutanese currency, exchanged against de-valued Indian high denomination notes of Rs 500 and Rs 1000,” it stated.
The decision to do away with the high value denominations has also helped the Ngultrum gain value, for the first time, over the Indian Rupee although it is only in the informal market. The Bhutanese Ngultrum is pegged to the Rupee.
An Indian note of Rs 500 is exchanged for Rs 400 worth of Bhutanese currency, while a Bhutanese Rs 500 note is held for its face value. The situation was the reverse prior to the demonetization move, when Indian Rs 500 fetched as much and the Bhutanese Rs 500 was taken for value of Rs 400, according to media report.
A business man in Jaigaon reasoned that the businesses in Assam could be accepting Ngultrum as they could change it after all the rush and hullo-bulla is over.
In West Bengal, locals from Samtse are also enjoying the Ngultrum appreciating in value. Indian media reported that Bhutanese who frequent Chamurchi and Nagrakata in Jalpaiguri to buy groceries and other essentials have benefited from the Indian government’s demonetisation decision. Locals are buying good worth Nu 110 for Nu 100, a trend that reversed after the recent rupee rule.
“I regularly visit the markets in Chamurchi and Nagrakata and buy various commodities. Over the past few days, the informal exchange rate has reversed and our money is being valued at 10 per cent more than the Indian currency by traders and shop owners in those markets,” a Bhutanese Choden was quoted in The Telegraph.
Meanwhile, long lines of people are still seen at the banks and at the Royal Monetary Authority to change the Rupee 500 and 1,000 denominations. With the RMA changing the deadline of depositing the INR notes to November 30, the rush has increased.
Customers said that while many had saved Rupee for pilgrimage to India and Nepal, the decision had come as a blow. A cafĂ© owner along Norzin Lam who is renovating her building said she had saved Rupee since 2008. “We changed whatever we had to Rupee as we get our materials from Siliguri,” she said. With a bag hanging around her shoulder, she was at the bank to change Nu INR 2.1 million. “I even changed the INR 100 notes to make it convenient carrying higer denomination notes.”
However, the RMA assured that they are in close consultations with their counterparts in India to ensure timely supply of Rupee having legal tender character in Bhutan.
The central bank also urged the public to refrain from misusing the facilities being provided. “The financial intelligence unit is closely monitoring and collecting detailed information on all deposits being made and will be collaborating with other relevant authorities,” it stated in a notification.
Bordering towns in Assam and West Bengal started accepting Ngultrum
The Indian rupee 500 and 1,000 notes may have lost it legal tender status in Bhutan, but the Ngultrum has come to the rescue in some bordering town of Assam and West Bengal.
According to local Indian media report, Bhutanese currency is being reportedly used as legal tender in parts of Assam. One media, The North East Today, reported that while Bhutan currency is used in normal times also, its use is very limited and mostly confined for dealings across the border. “But local people told television channels that they are now being compelled to use Bhutanese currency, exchanged against de-valued Indian high denomination notes of Rs 500 and Rs 1000,” it stated.
The decision to do away with the high value denominations has also helped the Ngultrum gain value, for the first time, over the Indian Rupee although it is only in the informal market. The Bhutanese Ngultrum is pegged to the Rupee.
An Indian note of Rs 500 is exchanged for Rs 400 worth of Bhutanese currency, while a Bhutanese Rs 500 note is held for its face value. The situation was the reverse prior to the demonetization move, when Indian Rs 500 fetched as much and the Bhutanese Rs 500 was taken for value of Rs 400, according to media report.
A business man in Jaigaon reasoned that the businesses in Assam could be accepting Ngultrum as they could change it after all the rush and hullo-bulla is over.
In West Bengal, locals from Samtse are also enjoying the Ngultrum appreciating in value. Indian media reported that Bhutanese who frequent Chamurchi and Nagrakata in Jalpaiguri to buy groceries and other essentials have benefited from the Indian government’s demonetisation decision. Locals are buying good worth Nu 110 for Nu 100, a trend that reversed after the recent rupee rule.
“I regularly visit the markets in Chamurchi and Nagrakata and buy various commodities. Over the past few days, the informal exchange rate has reversed and our money is being valued at 10 per cent more than the Indian currency by traders and shop owners in those markets,” a Bhutanese Choden was quoted in The Telegraph.
Meanwhile, long lines of people are still seen at the banks and at the Royal Monetary Authority to change the Rupee 500 and 1,000 denominations. With the RMA changing the deadline of depositing the INR notes to November 30, the rush has increased.
Customers said that while many had saved Rupee for pilgrimage to India and Nepal, the decision had come as a blow. A cafĂ© owner along Norzin Lam who is renovating her building said she had saved Rupee since 2008. “We changed whatever we had to Rupee as we get our materials from Siliguri,” she said. With a bag hanging around her shoulder, she was at the bank to change Nu INR 2.1 million. “I even changed the INR 100 notes to make it convenient carrying higer denomination notes.”
However, the RMA assured that they are in close consultations with their counterparts in India to ensure timely supply of Rupee having legal tender character in Bhutan.
The central bank also urged the public to refrain from misusing the facilities being provided. “The financial intelligence unit is closely monitoring and collecting detailed information on all deposits being made and will be collaborating with other relevant authorities,” it stated in a notification.
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