The Official Currency of Bhutan: Understanding Ngultrum and Its Relationship with Indian Rupee

When traveling to Bhutan, one of the key points to understand is the official currency of the country. Here, we delve into the details of the Bhutanese Ngultrum (BTN) and its special relationship with the Indian Rupee (INR).

The Ngultrum: An Overview of Bhutan's Local Currency

The official currency of Bhutan is the Ngultrum, abbreviated as BTN. This unique currency has a rich history and interesting symbolism. Named after two Bhutanese words, "ngul" (silver) and "trum" (coin), the Ngultrum represents a cultural and traditional aspect of Bhutan. It is subdivided into 100 chhertums, much like the way the Rupee is divided into 100 paise.

Official Denominations and Symbols

The Ngultrum comes in various denominations, including notes of 1, 5, 10, 20, 50, 100, 500, and 1000 BTN. Similarly, coins are available in 20, 25, 50 chhertum denominations. The symbol for the Ngultrum is BTN.

The Pegging Arrangement with Indian Rupee

A unique feature of the Ngultrum is its pegging to the Indian Rupee. This pegging arrangement means that 1 Bhutanese Ngultrum is equal to 1 Indian Rupee. This relationship has led to the acceptance of Indian Rupees in Bhutan and vice versa. For tourists traveling from India, this can be quite beneficial since they can use their Indian Rupees directly in Bhutan without the need for exchange.

Market Acceptance and Practical Use

Due to the pegging arrangement, the Indian Rupee is widely accepted in Bhutan. Markets, shops, and businesses often accept both the Bhutanese Ngultrum and the Indian Rupee. Additionally, some shops and businesses might even have a preference for the Indian Rupee due to its practicality. Indian Rupees smaller than 500 and 2000 denominations are also acceptable in Bhutan.

Additional Information and Resources

For those planning a trip to Bhutan or simply interested in learning more about the country's currency, here are some additional resources:

By understanding the currency situation, travelers can save themselves the hassle of currency exchange and enjoy their Bhutanese experience more smoothly.

Pronunciation: The correct pronunciation of Ngultrum is Nul-trum. Proclaiming this name correctly can help you blend in more naturally during your travels.