WHAT IS 'BTN (Bhutanese Ngultrum)'

BTN is the symbol for the Bhutanese Ngultrum, the official currency of the Kingdom of Bhutan, an isolated, mountainous nation in central Asia. Its name is a combination of the word Ngul, meaning "silver” in the traditional Bhutanese Dzongkha language, and trum, a Hindi loan word meaning “money.” It can be divided into 100 chetrum. It is abbreviated as Nu.

BREAKING DOWN 'BTN (Bhutanese Ngultrum)'

BTN, the Bhutanese ngultrum, was introduced in 1974. Until 1789, the most commonly used currency in Bhutan consisted of coins manufactured at the Cooch Behar mint in West Bengal, India. After the occupation of the mint by the British colonial armies, Bhutan began to issue its own currency, initially copper and silver coins called chetrum. These were manufactured in the traditional way, by blacksmiths operating with hammers and dies. Thanks to the remote nation’s isolation from industrialization, it was not until 1929 that Bhutan began to issue modern coins. After a period of modernization and economic reform, in 1968 the Bank of Bhutan was created, and in 1974 the Ngultrum was introduced, at the rate of one ngultrum per hundred chetrum, which was pegged at parity with the Indian rupee, a distinction which it holds to this day.

Modern Use

The ngultrum is minted within Bhutan by the Royal Monetary Authority of Bhutan. As the Kingdom of Bhutan is a smaller nation without major exports, the country has pegged its currency value to that of the Indian rupee. This has been a commonality since 1974 when new financial reform took place within the Kingdom of Bhutan. The exact exchange rate does vary slightly yet remains connected to the Indian rupee. Currently, 1 Bhutanese ngultrum is equal to 1 Indian rupee.

Anything under Nu. 1 comes in coin form. All paper denominations include the Nu.1, Nu. 5, Nu. 10, Nu. 20, Nu. 50, Nu.100 and the Nu. 500. As the value of the bill increases so too does the size, although the Nu. 500 is slightly smaller than the Nu. 100. However, the 500 Ngultrum bill is not commonly circulated. There is also a recently released Nu. 1,000 bill, although much like the Nu. 500 this is rarely used in day-to-day life.

As tourism is one of Bhutan’s most important industries, many foreign currencies are accepted in lieu of the local official currency. However, many travelers realize too late that because of the limited acceptance and relatively recent adoption of the ngultrum, there is virtually no chance of being able to exchange any extra ngultrum in the tourists’ country of origin.

RELATED TERMS
  1. INR (Indian Rupee)

    The currency abbreviation or currency symbol for the Indian rupee ...
  2. Indian Rupee - INR

    The Indian Rupee (INR) is the currency of India.
  3. PKR (Pakistani Rupee)

    The PKR is the symbol for the Pakistani rupee.
  4. MUR (Mauritius Rupee)

    The currency abbreviation for the Mauritius rupee (MUR), the ...
  5. MUR

    In currencies, this is the abbreviation for the Mauritius Rupee. ...
  6. SCR

    SCR is the abbreviation for the Seychellois rupee, the currency ...
Related Articles
  1. Investing

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  2. Insights

    Interesting Facts About Imports and Exports

    Learn how imports and exports exert a profound influence on the consumer and the economy.
  3. Investing

    The Top 3 Currency ETFs

    The three top performing currency ETFs in 2017.
  4. Investing

    5 Emerging Markets Currencies to Consider in 2016

    Take a look at five emerging market currencies that could show strength in 2016, despite expectations that most emerging economies will continue to struggle.
  5. Insights

    India Takes 500 and 1000 Rupee Notes Out of Circulation to Fight `Black Money'

    Prime Minister Modi says the plan is aimed at ending the underground economy and fighting counterfeiting in a nation where 1% of the population pays taxes
  6. Investing

    Top Indian Stocks For American Investors

    American investors looking to diversify their portfolio to include Indian stocks can do so easily by purchasing shares ADRs of Indian stocks.
  7. Tech

    New Counterfeit-Proof £1 introduced by the British Royal Mint

    Dubbed "the most secure coin in the world", the new British £1 coin entered circulation March 28.
  8. Insights

    Are $1 Coins A Better Option Than $1 Bills?

    We look at how much the government could save if it took $1 bills out of circulation.
  9. Insights

    The Evolution Of Ticker Symbols

    The stock market has changed dramatically since its inception, but the use of ticker symbols has remained largely unchanged.
  10. Investing

    Why Are People Hoarding Coins?

    Meet the new class of investor: the coin hoarder.
RELATED FAQS
  1. Is there a world currency? If so, what is it?

    There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has ... Read Answer >>
  2. What is foreign exchange?

    Foreign exchange is the conversion of a country's currency into another. In a free economy, a country's currency is valued ... Read Answer >>
  3. What are key economic factors that can cause currency depreciation in a country?

    Read about the causes of currency devaluation, and find out how to differentiate between relative and absolute currency devaluation. Read Answer >>
  4. How do mutual funds work in India?

    Find out how mutual funds work in India, including what types of funds are available, how they are structured and how they ... Read Answer >>
Hot Definitions
  1. Inflation

    Inflation is the rate at which prices for goods and services is rising and the worth of currency is dropping.
  2. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  3. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  4. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  5. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  6. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
Trading Center