The country’s foreign currency reserve stands at USD 860 M as of February this year, holding steady despite global uncertainties. The central bank attributes this to strong inflows from hydropower exports, loans and grants, and inward remittances from Bhutanese living abroad. The central bank stated that the current reserve level meets the constitutional requirement of covering at least one year’s worth of essential imports.
According to the central bank’s monthly statistical bulletin for April 2025, the country’s foreign currency reserve exceeded USD 850 M in the first two months this year.
This is a significant increase of more than USD 230 M from the same period last year.
In these first two months, the country generated more than Nu 200 M from hydropower, compared to just over Nu 130 M during the same period last year.
Dagachhu Hydropower Project generated the highest revenue in the first two months this year with almost Nu 95 M.
The central bank also reported an increase in remittances from Bhutanese living abroad. The country received some USD 36 M in remittances in the first two months this year, compared to less than USD 30 M in the same period last year.
The highest remittances were received from Bhutanese living in Australia, with more than USD 23 M in the first two months this year.
Last year, the country received more than USD 164 M in remittances from Bhutanese living abroad.
Despite higher inflows, the central bank stated it remains committed to managing external reserves, as it is important for Bhutan’s economic stability, especially during uncertain times.
However, should economic risks arise, the central bank says it is prepared to take prompt measures such as mobilising funds from external sources and improving foreign exchange management.
Deki Lhazom
Edited by Tandin Phuntsho
