Foreign Exchange Transactions in Bhutan: Rules and Regulations

The Royal Monetary Authority (RMA) of Bhutan has issued guidelines for foreign exchange transactions within the country. These rules aim to regulate various aspects of foreign exchange transactions, including importation of goods and services, official travel, business travel, medical-related travel, education-related travel, private travel, family remittances, and insurance services.

Key Aspects of Foreign Exchange Transactions

1. Foreign Currency Account

Authorized banks are required to maintain foreign currency accounts for residents and non-residents.
Residents can open a foreign currency account with an authorized bank to facilitate transactions related to international travel or trade.

2. Import of Goods and Services

Importers must pay for goods and services through normal banking channels, ensuring that all payments are made in accordance with national regulations.
Payment for imports is subject to the exchange rate set by the RMA at the time of payment.

3. Air Tickets

Air tickets purchased in Bhutan must be paid in Ngultrum (BTN), the local currency.
Foreign nationals can purchase air tickets with foreign currency abroad or through authorized banks in Bhutan.

4. Official Travel

Officials can obtain daily subsistence allowance (DSA) in foreign currency cash for official travel and related costs such as air fare and living expenses.
Related costs, including air fare and living expenses, must be paid separately from the DSA.

5. Business Travel

Residents can apply for travel allowance in foreign currency cash or debit their foreign currency account for business travel.
The travel allowance is subject to the exchange rate set by the RMA at the time of application.

Residents can obtain foreign currency in cash for medical treatment abroad and make payments directly or through bank drafts.
The amount of foreign currency that can be obtained is subject to the regulations set by the RMA.

Residents can pay tuition fees, living allowances, and other expenses related to education abroad using their foreign currency account.
The payment must be made in accordance with the exchange rate set by the RMA at the time of payment.

8. Private Travel

Residents can apply for foreign currency as part of their traveling allowance when traveling abroad.
The amount of foreign currency that can be obtained is subject to the regulations set by the RMA.

9. Family Remittances

Resident individuals can make family remittances within the prescribed limits, which are subject to the exchange rate set by the RMA at the time of remittance.

10. Insurance Services

Insurers licensed by the RMA can remit foreign currency for current transactions related to insurance products and services.
The remittance is subject to the regulations set by the RMA.

Conclusion

The Royal Monetary Authority (RMA) has issued guidelines for foreign exchange transactions within Bhutan, ensuring that they align with national policies and regulations. These guidelines cover various aspects of foreign exchange transactions, including importation of goods and services, official travel, business travel, medical-related travel, education-related travel, private travel, family remittances, and insurance services.