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Money Matters in Bhutan: A Traveler's Guide

Welcome to Bhutan, a land of breathtaking landscapes and rich culture! To ensure a smooth and enjoyable trip with Travel Across Bhutan, understanding the local currency and financial practices is essential.

Let’s delve into the key aspects of managing your money in Bhutan.

Understanding Bhutan's Currency: The Ngultrum

The official currency of Bhutan is the Ngultrum (BTN or Nu). Interestingly, the Ngultrum is pegged at a 1:1 ratio with the Indian Rupee (INR), making it relatively straightforward to understand its value if you’re familiar with INR. Indian Rupees are widely accepted throughout Bhutan; however, please note that denominations of INR 500 and INR 2000 are not accepted.

For smaller transactions and in areas where INR might not be the preferred option, it’s advisable to exchange your home currency for Ngultrum upon your arrival.

The Ngultrum comes in the following denominations of banknotes and coins:

Banknotes

Nu 1: While still legal tender, these are becoming less common in circulation. (Approximately USD 0.012)
Nu 5: (Approximately USD 0.058)
Nu 10: (Approximately USD 0.12)
Nu 20: (Approximately USD 0.23)
Nu 50: (Approximately USD 0.58)
Nu 100: (Approximately USD 1.16)
Nu 500: (Approximately USD 5.80 – USD 5.82)
Nu 1000: (Approximately USD 11.60 – USD 11.63)

Coins

Chetrum (Ch.) 5: 100 Chetrum equals 1 Ngultrum. These are also becoming less common. (Approximately USD 0.00058)
Chetrum (Ch.) 10: (Approximately USD 0.0012)
Chetrum (Ch.) 20: (Approximately USD 0.0023)
Chetrum (Ch.) 25: (Approximately USD 0.0029)
Chetrum (Ch.) 50: (Approximately USD 0.0058)
Nu 1: (Approximately USD 0.012)

Navigating Exchange Rates: Where and How?

When planning your trip, you’ll naturally wonder, “Where can I change my currency in Bhutan?” You have a few options:

Paro International Airport: This offers immediate convenience upon arrival, although the exchange rates might not be the most favorable.
Major Banks: Banks like the Bank of Bhutan (BoB), Bhutan National Bank (BNB), Druk PNB, and Tashi Bank, located in major towns, generally provide competitive exchange rates.
Authorized Money Changers: You can find these in Thimphu and Paro. It’s always a good practice to compare the rates offered by different exchangers.

Remember to always inquire about the current exchange rate and any commission fees before you proceed with the exchange.

As of April 15, 2025, approximate exchange rates were around 1 USD ≈ 86 BTN, 1 EUR ≈ 91 BTN, and 1 GBP ≈ 107 BTN, but these can fluctuate.

Accessing Cash: ATM Availability

You might be asking, “Are ATMs readily available in Bhutan?”

The answer is yes, in major towns such as Thimphu, Paro, and Punakha.

Banks like the Bank of Bhutan, Druk PNB, and Bhutan National Bank have established ATM networks.

Most of these ATMs accept major international debit and credit cards, including Visa, Mastercard, Maestro, Plus, and Cirrus.

While some may also accept JCB, Rupay, and Amex, acceptance can vary.

It’s wise to carry cards from both Visa and Mastercard networks if possible.

Be aware that ATM charges for international cardholders typically range from Nu 150 to Nu 300 per transaction (2 to 4 USD).

While generally reliable in urban areas, it’s prudent to carry sufficient cash, especially when venturing into smaller towns and remote regions where ATMs might be less accessible or could run out of cash.

You can usually find a list of ATM locations on the respective bank’s websites, such as the Bank of Bhutan’s.

Using Credit Cards: What You Need to Know

A common question is, “Which credit cards are commonly accepted in Bhutan?” Credit card usage in Bhutan is somewhat limited, particularly outside major cities and tourist centers like Thimphu and Paro.

Larger hotels, some upscale restaurants, and souvenir shops in these areas may accept Visa and Mastercard.

American Express and other cards are less commonly accepted.

Keep in mind that technical disruptions can sometimes occur with card payment systems, so having cash as a backup is always recommended.

Additionally, merchants might levy a surcharge, typically between 3-5%, on credit card transactions.

Before your trip, it’s a good idea to inform your bank about your travel plans to Bhutan to prevent your card from being unexpectedly blocked due to international transaction alerts.

Travel Costs: What to Expect

Bhutan’s tourism policy emphasizes “High-value, Low impact,” which influences the cost of travel.

While the previous Minimum Daily Package Rate (MDPR) has evolved, the Sustainable Development Fee (SDF) is a key component.

Currently, the SDF stands at USD 100 per person per night for most international tourists.

This fee contributes significantly to Bhutan’s environmental and cultural preservation efforts.

Children aged 6-11 may receive a 50% discount on the SDF, and it’s free for those aged 5 and under.

Beyond the SDF, your daily expenses will depend on your travel style.

Accomodation

Budget hotels and homestays might range from USD 50 to USD 100 per person per night, while mid-range options could be USD 100 to USD 250+ and luxury resorts can exceed USD 300 per person per night.

Restauration

For meals, budget-friendly local eateries might cost USD 5 to USD 15 per person per day, mid-range restaurants around USD 15 to USD 30, and high-end dining USD 30+.

Activities

Entrance fees for specific sites can also add to your costs; for example, the iconic Tiger’s Nest Monastery has an entrance fee of approximately USD 25.

If you’re traveling with Travel Across Bhutan on a guided tour package, transportation and guide services are typically included in the overall cost.

Cost of Living Examples for Tourists

To give you a clearer picture of daily expenses, here are some examples of common items you might encounter, based on data from Numbeo, with approximate prices in both local currency (BTN) and US Dollars (USD as of April 15, 2025):

Meal, Inexpensive Restaurant: Nu 250 (approximately USD 2.91)
Domestic Beer (0.5 liter draught): Nu 150 (approximately USD 1.74)
Water (0.33 liter bottle): Nu 40 (approximately USD 0.47)
Taxi Start (Normal Tariff): Nu 100 (approximately USD 1.16)
Taxi 1km (Normal Tariff): Nu 50 (approximately USD 0.58)

Please remember that these are average estimates and actual prices can vary depending on the location and the type of establishment.

Smart Budgeting Tips

To make the most of your trip without overspending, consider these budgeting tips:

Consider Off-Season Travel: Traveling during the low season (June to August and December to February) can often lead to lower prices for accommodations and potentially fewer crowds.
Explore Group Tours: Joining a group tour with Travel Across Bhutan can help you share costs for transportation and potentially accommodation.
Opt for Local Stays: Choosing locally owned guesthouses and homestays can be more affordable and offer a more authentic cultural experience.
Dine Locally: Exploring local restaurants will often provide more budget-friendly and traditional Bhutanese meals.
Balance Activities: While some attractions have entrance fees, consider incorporating free activities like exploring dzongs from the outside and enjoying Bhutan’s stunning natural beauty.
Carry Sufficient Cash: While ATMs are present in major towns, having enough cash on hand is wise for smaller establishments and rural areas.
Be Mindful of Souvenirs: Set a budget for souvenir shopping and compare prices before making purchases.
Factor in the SDF: Remember that the Sustainable Development Fee is a significant part of your daily expenditure.
Discuss with Travel Across Bhutan: Don’t hesitate to discuss your budget with your tour operator to explore options that align with your financial preferences.

By keeping these financial insights in mind, you can plan your Bhutan journey effectively and enjoy the unique experiences this remarkable kingdom has to offer with Travel Across Bhutan!

Economy

To provide a broader perspective on the financial landscape of Bhutan, it’s helpful to understand key aspects of its economy.

GDP

The total GDP (nominal) of Bhutan was around USD 2.9 billion as of 2022.

Bhutan’s gross domestic product (GDP) per capita was approximately USD 3,711 in 2022. While this figure places Bhutan among the richer countries in South Asia, it still ranks relatively lower on a global scale. Projections suggest a trend of gradual increase in the coming years.

Economic Structure

The Bhutanese economy is traditionally based on agriculture and forestry, which still provide the primary livelihood for a significant portion of the population.

However, the services sector, including tourism and hydropower, is playing an increasingly vital role.

In 2017, the estimated breakdown of GDP by sector was:

Agriculture (16.2%)
Industry (41.8%)
Services (42%)

Tourism’s Contribution

Tourism is a significant source of convertible currency and the second-largest revenue generator for Bhutan after hydropower. While the exact percentage of GDP contribution fluctuates, it was estimated to be around 4-5% before the COVID-19 pandemic.

Efforts are underway to increase this contribution sustainably. The revenue generated from the Sustainable Development Fee (SDF) directly supports environmental conservation, cultural preservation, and infrastructure development. Tourist arrivals saw a significant surge in late 2024, indicating a positive trend for the sector’s economic impact.

Major Exports

Bhutan’s main exports include:

Electricity: Predominantly exported to India, accounting for a significant portion of total exports (around 30-50% in recent years).
Ferroalloys: A substantial export commodity.
Cement and Dolomite: Important contributors to the export sector.
Other exports include carbides, wood products, processed foods, and increasingly, aircraft.

India is overwhelmingly Bhutan’s primary export partner, accounting for a large majority of its exports.

Major Imports

Bhutan’s main imports include machinery, minerals, motor vehicles, metals, and refined petroleum. India is also the dominant import partner.

Average Salary

The average salary for Bhutanese citizens varies significantly depending on the profession, level of experience, and sector (public vs. private). However, reports suggest that the average civil servant salary can range from Nu 30,000 to Nu 45,000 per month (approximately USD 349 to USD 523).

Higher-ranking officials and those in specialized fields would earn considerably more. Please note that these are broad averages and the actual income distribution is varied.

Average Rent

Rental costs also vary greatly depending on location and the type of accommodation. In urban areas like Thimphu, more recent reports suggest that a single bedroom apartment could range from Nu 8,000 to Nu 15,000 per month (approximately USD 93 to USD 174).

In more rural areas, rent is likely to be significantly lower. It’s also important to note that housing affordability is a concern for many Bhutanese.

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