Ngultrum

The ngultrum (ISO: BTN, commonly abbreviated “Nu”) is Bhutan’s national currency, introduced in 1974. It is pegged at 1:1 to the Indian Rupee — the Indian Rupee circulates freely in Bhutan alongside the ngultrum, and the two are interchangeable for everyday transactions.

The peg gives Bhutan price stability and seamless cross-border trade with its largest partner, but removes independent monetary policy. The Royal Monetary Authority’s interest-rate stance effectively follows the Reserve Bank of India’s, set for the Indian economy rather than Bhutan’s.

See also: Chapter Six, Paradox #24.