The traders in Jaigaon, India are happy as they could exchange more than Nu 800 M through the Royal Monetary Authority in Phuentshogling. The move is expected to resolve the current rupee crisis in the neighbouring border town.
Strict COVID-19 safety protocols are being followed at the counters in Mini Dry Port (MDP). In the last four days, they exchanged more than Nu 800 M. And it is the result of the pandemic which lead to the closing of border gate on 23rd March. According to Jaigaon residents, the situation has led to the devaluation of ngultrum in Jaigaon.
However, in order to continue free uninterrupted trade with India and to maintain free convertibility of Nu and INR at parity, the Royal Monetary Authority facilitated an exchange counter at the MDP. The open area banking at the MDP under the supervision of COVID-19 Task Force in Phuentshogling is in itself an extraordinary arrangement by Bhutanese authorities to strengthen the spirit of friendship between the two countries.
“Due to the pandemic, Phuentshogling town has entered into a red zone too. So, for at least four months, the transaction couldn’t happen. With no other option, traders here started charging high for those paying in Bhutanese currency. I on behalf of people of Jaigaon thank BIFA secretary Thinley and RMA for resolving the issue,” said Phurba Lama Pradhan of Jaigaon Gram Panchayat 2 in Jaigaon under West Bengal, India.
“Indian currency was not sufficiently available here because people here have so much faith in Bhutanese currency and maximum people from Jaigaon were working in Bhutan. So, people here had more Bhutanese currency. Due to insufficient Indian currency, new purchases were not made. After we got the information that demand draft and RTGS were made, Bhutanese currency has come at par with Indian currency in Jaigaon,” said Binay Jain, from Jaigaon.
“I take this opportunity to thank administrations from India and Bhutan, RMA and BIFA officials for the great initiative of resuming the facility of demand draft for the traders and consumers. Gestures like this will further strengthen the Indo Bhutan friendship for years to come,” said Rishikesh Nandan, also from Jaigaon.
People in Jaigaon had more ngultrum than rupee after the pandemic. The Royal Monetary Authority also facilitated the exchange of nearly Nu 700 M until June.
For safety, a separate bus is allocated to pick and drop the Jaigaon merchants from the second entry gate.
Sonam Penjor
