English | Dzongkha Monday, July 23, 2018

Of Ngultrums and dollars

Nov 24, 2011

This may not be the right time to order the SUV you always dreamt of owning or buy an expensive electronic gadget for your wife.

They could cost you a lot more than they normally would.

The value of the Ngultrum has dropped like a rock against the dollar. The banks sell US dollars at an all time high rate of Nu.52.95 a dollar.

This means, it will be far more expensive to buy imported goods which have to be paid for in US dollar.

“If you are importing a car from Korea or from Japan, costing 10,000 dollars, earlier you paid Nu. 455,000. Now, at the present rate, you would be paying Nu. 520,000,” explained KuengaTshering, the director of the national statistical bureau,

It is not only expensive cars or electronics imported from Japan or the US. The drop in the value of Ngultrum can also affect of the price of goods imported from India.

The Ngultrum is pegged to the Indian rupee.

“India imports oil. They will have to pay more for the same amount of oil. Therefore the price of oil will go up in India. The increase in the price of oil affects other sectors like transportation or the cost of operating the machinery which will increase the production cost which in turn will hike up the price of the goods.”

Bhutan imports more than 75 percent of goods and commodities from outside, mainly from India.

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