What are the purposes for which foreign exchange can be obtained ?
The framework for the administration of foreign exchange controls by the RMA is provided by the Foreign Exchange Regulations approved by the National Assembly in 1997. The regulations set out the purposes, amounts and the terms and conditions subject to which foreign exchange can be obtained. Under the regulations, foreign exchange is admissible for most current account transactions with persons resident in countries other than India.

Is foreign exchange available for transactions with India ?
In terms of Article IV of the Trade and Commerce Agreement between Bhutan and India, transactions between persons resident in Bhutan and India are denominated in Indian rupees or Ngultrum. Therefore, foreign exchange is not admissible for any kind of travel to India, or for transactions with persons resident in India

What is the procedure for remitting foreign exchange payments for imports?
Imports from third countries require an Import Licence from the Ministry of Trade & Industry. The rules and procedures for importing goods from third countries are set out in the Rules and Procedures for Imports from Third Countries issued by the Department of Trade/MTI. An importer who has obtained an Import Licence can remit payment in foreign exchange through an authorised bank by means of a Letter of Credit or by Telegraphic transfer to the supplier abroad.

How much foreign exchange is available for business trips abroad ?
A person traveling abroad on business to any country other than India can obtain foreign exchange at the Daily Subsistence Allowance rates prescribed by the Ministry of Finance. Therefore, the proposed itinerary and evidence in the form of airline tickets, passport, and any other documents, such as copies of correspondence with parties abroad, should be submitted along with the application in Form FXD:02 to the RMA. Visits abroad for attending international conferences, seminars, training, study tours, market research, trade fairs etc. are treated as business trips.

Can a person obtain foreign exchange for studies or training abroad ?
Yes, foreign exchange is available for Bhutanese students pursuing studies in any third country. Students who have been admitted in institutions abroad may obtain foreign exchange to cover the actual fees, and up to US dollar 900 per month towards their living costs, provided that this is not included in the institution's fees. The applications along with all required documents should be submitted to the RMA in Form FXD:03.

How much exchange is available for medical treatment abroad?
A person going for medical treatment based on the approval accorded from JDWNRH Referral Committee will be entitled only for the Annual Travel Scheme(ATS). The foreign exchange required for medical treatment will be directly wired to the designated hospital abroad upon receiving the details of the bank account and approximate cost of the treatment. Copy of the medical bill must be submitted to the RMA within one month from date of return
Application in form FXD:04, along with recommendation of the Department of Health Services should be submitted to the RMA.

Can one obtain foreign exchange for private visits abroad?
Persons proceeding abroad on private visits such as for purposes of tourism can draw foreign exchange up to US $ 3000.00 in any one calendar year. The ceiling of US$ 3000 is applicable in aggregate and foreign exchange may be obtained for one or more visits provided the aggregate amount does not exceed the ceiling of US$ 3000.00.This entitlement may be drawn along with foreign exchange for other visits abroad, such as for business, studies, training or medical treatment. Application should be submitted to the RMA in Form FXD:01.

How much can one avail for US $ cash notes for the entitled schemes?
Persons entitled for Annual Travel Schemes,Business Travel Scheme and Studies & Training Abroad are allowed to draw only up to a maximum of US $ 500.00 in currency note for their incidental travel expenses and the remaining balance will be in US dollar traveler's cheques.

Can a resident open a foreign currency account with a bank in Bhutan?
At present, only the following categories of residents are permitted to open and maintain US dollar denominated foreign currency accounts in Bhutan: Diplomatic missions and their expatriate employees.Representative offices of donor agencies and their expatriate employees. Third country contracting firms engaged in executing projects financed by donor agencies, and their expatriate employees. Any other national of a third country who is resident in Bhutan.

What are the terms and conditions for maintaining a foreign currency account in Bhutan?
The conditions for maintaining foreign currency accounts in Bhutan are: The account must be funded through direct receipt of convertible foreign exchange.The balances in the account may be freely remitted abroad.Withdrawals in US dollar notes from the account are subject to a maximum limit of US$ 500 per month. Any amounts beyond this limit may be withdrawn in travellers' cheques.Foreign currency denominated cheques may be drawn against the account for payments to other foreign currency account holders, and for payments to the Duty Free Store, the Handicrafts Emporium, and to Druk Air Corporation for payment of air-fare.All other payments within Bhutan must be made only in local currency.

Which foreign currencies are accepted in Bhutan?
The bank notes and travellers' cheques denominated in any of the following currencies are accepted in Bhutan.
US dollar
Euro
British Pound
Swiss Franc
Norwegian Kroner
Canadian Dollar
Singapore dollar
Hong Kong dollar
Australian dollar
Japanese Yen
Swedish Kroner
Danish Kroner

Can a Bhutanese citizen maintain and operate foreign currency accounts abroad?
No Bhutanese citizens resident in Bhutan are not permitted to open, maintain and operate bank accounts outside the territory of Bhutan. However, citizens who proceed abroad for purposes of work, studies, training, etc. may open accounts with banks abroad and operate them during their stay abroad.

Is it permissible to use foreign exchange for payments within Bhutan?
Except for the Indian rupee to which the Ngultrum is pegged at parity, and which circulates freely in Bhutan, paying, or receiving payments in any other foreign currency for transactions in Bhutan is illegal. Foreign residents can make payments in approved foreign currency (notes and foreign currencies - denominated cheques from foreign currency accounts) to the Duty Free Store, Handicrafts Emporium, and Druk Air.

Is there a limit on the amount of foreign exchange that may be brought into Bhutan?
There is no limit on the amount of convertible foreign exchange that may be brought into Bhutan. However, the RMA retains the right to make it obligatory for persons entering Bhutan to declare at the customs point of entry into Bhutan, foreign exchange above such limits as it may specify?.There is no limit on the amount of Indian currency that a person may bring into Bhutan. However, travellers should be note that under the laws of India, Indian currency notes in denominations above Rs.100 are not allowed to be sent or brought into Bhutan and Nepal.

Are there any restrictions on the amount of foreign exchange that a person can take out of Bhutan?
Convertible foreign exchange that has been obtained from authorized banks, and such additional amounts as may reasonably be in the possession of a person may be taken out of Bhutan.

How much Bhutanese currency can be taken out of Bhutan?
A person leaving Bhutan may carry a reasonable amount of Bhutanese currency.

How much Indian currency can be taken out of Bhutan?
There is no limit on the amount of Indian currency that a person may send or take from Bhutan to India. It should, however, be noted that under the laws of India, it is illegal to send or to bring Indian currency notes in denominations above Rs.100 into India from Bhutan and Nepal. Persons going to a third country from Bhutan should not carry more than Rs.5000 in Indian currency notes.