RU­PEE RE­SERVE AT RS 20BN

Business Bhutan - - Nation -

The coun­try’s in­ter­na­tional re­serve po­si­tion as of Au­gust this year was at USD 1.1bn, with the Ru­pee re­serve form­ing Rs 20.5bn and con­vert­ible cur­rency re­serve at USD 817 mn.

The Ru­pee re­serve in the be­gin­ning of the year was Rs 23bn, the high­est in 2018. It then fell to Rs 17bn in Fe­bru­ary and dipped to Rs 11bn in April, af­ter which it grad­u­ally picked up. The re­serve po­si­tion is ac­cord­ing to the Royal Mon­e­tary Author­ity’s re­cent monthly sta­tis­ti­cal bul­letin.

On the con­vert­ible cur­rency, re­serves re­port­edly im­proved from USD 802mn in Jan­uary this year to USD 817mn. Mean­while, the to­tal re­serve is enough to fi­nance 14.3 months of mer­chan­dise im­port and con­vert­ible cur­rency re­serve alone is suf­fi­cient to fi­nance 75.6 months of mer­chan­dise im­port driven in USD. How­ever, the Ru­pee re­serve will meet only 4.4 months of mer­chan­dise im­port driven in In­dian Ru­pees.

Con­sti­tu­tional re­quire­ment, how­ever, ar­tic­u­lates that a min­i­mum for­eign cur­rency re­serve that is ad­e­quate to meet the cost of not less than one year’s es­sen­tial im­port must be main­tained.

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