Revised FDI allows foreign investors to take profits in convertible currencies

FDI-LyonpoNorbuWangchuk

The revised Foreign Direct Investment (FDI) policy will now allow foreign investors to take dividends or profits in convertible currencies. Earlier policy restricted conversion of profits resulting the country’s first-ever FDI company, G4S, to pull out.

There is no excess liquidity: government

ExcessLiquidity

While local banks, economists and the opposition believe there is excess money lying idle in the financial system, the government thinks otherwise.

Inflation continues to drop

InflationDrops

Bhutan’s consumer inflation continued to drop, reaching an all time low of 6.3 percent in December, last year. In November, inflation recorded was 6.6 percent.

Non-Performing loan at Nu 7.6B

non-performing loan INCREASED-..

The total amount of non-performing loans or bad loans in the commercial banks has increased from Nu 3B in 2010 to Nu 7.6B last year. In other words 12 percent of total credit dished out by the financial sector has defaulted.

Inflation drops to its lowest in 2014

Inflation

Bhutan’s consumer inflation fell to 6.6 percent in November last year, the lowest recorded so far in 2014. The decrease in the rate of inflation was driven mainly by a reduction in the price of fossil fuel.

Decreased global fuel price impact on Bhutanese economy

Decreased global fuel price impact on Bhutanese economy-

The decrease in global fuel prices is pushing down the prices of goods and services in the local economy too. However, the decrease is not being felt, as much as, it is in the international market.

Movement restriction in Samtse impact orange exporters

The movement of people into Samtse has been restricted, following the recent unrest in Chamurchi, an Indian border town near Samtse. This has led to an adverse impact on the orange exporters. They have not been able to bring in workers for their businesses.

Soaring potato price pleases farmers

The price of potatoes has almost doubled this time, much to the relief of farmers in the East. Last year, a kilogram of potato used to cost Nu.17-20 a kilogram. A kilogram of potato now fetches about Nu.35.

To control price of poultry products

Whenever there is outbreak of poultry related diseases within the country, poultry farmers take an advantage of the situation and increase the price of poultry products especially egg.

Inflation hits highest in July

The inflation hit the highest in the country in July, this year, states the latest Consumer Price Index. The overall inflation in that particular month was 2.17 percent, which was higher than in June. It stood at 0.61 percent in June.

BBSC 2014