Bhutanese ngultrum facts for kids

Quick facts for kids Bhutanese ngultrum
ISO 4217 Code	BTN
User(s)	Bhutan (alongside Indian rupee)
Inflation	5.2%
Source	Royal Monetary Authority of Bhutan, 2015 est.
Pegged with	Indian rupee (at par)
Subunit
1⁄100	chhertum
Symbol	Nu.
chhertum	Ch.
Coins
Rarely used	Ch.5, Ch.10, Ch.25, Ch.50, Nu.1, Nu.3
Banknotes	Nu.1, Nu.5, Nu.10, Nu.20, Nu.50, Nu.100, Nu.500, Nu.1000

The ngultrum (say "ung-GOOL-trum") is the official money of the country of Bhutan. It is divided into 100 smaller parts called chhertum. The Royal Monetary Authority of Bhutan is like Bhutan's central bank. It is in charge of making all the ngultrum banknotes and coins. The ngultrum is currently linked to the Indian rupee. This means one ngultrum is always worth one Indian rupee.

History of Bhutan's Money

For a long time, until 1789, people in Bhutan used coins from a place called Cooch Behar. After that, Bhutan started making its own coins. These coins were called chetrum. They were mostly silver coins, like half-rupees.

At first, only silver and copper coins were made. Then, in 1929, modern silver half-rupee coins were introduced. Bronze 1 paisa coins followed in 1931. In 1950, nickel half-rupee coins also came out.

In 1957, Bhutan changed its money system to a decimal system. This means money was based on units of 100. For example, 100 naya paisa made up a larger coin. In 1966, new coins like 25 naya paisa, 50 naya paisa, and 1 rupee coins were made.

As Bhutan's economy grew in the 1960s, a bank was set up in 1968. This was the Bank of Bhutan. In 1974, big changes happened to the money system. The Ngultrum was officially introduced. It was decided that 100 Chhetrum would be equal to 1 Ngultrum. The Ngultrum kept its link to the Indian rupee, just like the older Bhutanese coins had.

The word "ngultrum" comes from two words. Ngul means "silver" in the Dzongkha language. Trum is a Hindi word that means "money."

The Ministry of Finance in Bhutan first printed banknotes in 1974. These were in values of Nu.1, Nu.5, Nu.10, and Nu.100. Later, in 1982, the Royal Monetary Authority of Bhutan was created. This became Bhutan's central bank. By 1983, it took over the job of printing all the banknotes.

Coins of Bhutan

In 1974, new coins were made. These included 5 and 10 chhertum coins made of aluminum. There were also 20 chhertum coins made of aluminum-bronze. And 25 chhertum and 1 ngultrum coins made of cupro-nickel. Some of these coins had interesting shapes, like the square 5 chhertum coin.

A new set of coins came out in 1979. These included 5 and 10 chhertum coins made of bronze. Also, 25 and 50 chhertum coins, and 1 and 3 ngultrum coins made of cupro-nickel. Today, the 5 and 10 chhertum coins are not used much. You can mostly find coins in values of 20 chhertum, 25 chhertum, 50 chhertum, and 1 ngultrum.

Banknotes of Bhutan

Older Banknotes

On June 2, 1974, the Royal Government of Bhutan introduced its first banknotes. These were in values of Nu.1, Nu.5, and Nu.10. Later, in 1978, Nu.2, Nu.20, Nu.50, and Nu.100 notes were added.

The Royal Monetary Authority of Bhutan (RMA) was officially set up in 1982. It started working in 1983. The RMA then began printing its own new series of banknotes in 1986.

Current Banknotes

In 2006, the Royal Monetary Authority introduced its newest series of banknotes. These notes are made using a special mix of materials. They come in values of Nu.1, Nu.5, Nu.10, Nu.20, Nu.50, Nu.100, Nu.500, and Nu.1000. Each note features important symbols, buildings, or leaders of Bhutan.

Exchange rate

See also

• Royal Monetary Authority of Bhutan
• Economy of Bhutan

Images for kids

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  Nu.1 coin from 1979

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  Obverse of a previous Nu.1 banknote

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  Reverse of a previous Nu.1 banknote

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  Obverse of a previous Nu.5 banknote

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  Reverse of a previous Nu.5 banknote

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  Obverse of a previous Nu.10 banknote

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  Reverse of a previous Nu.10 banknote

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  Obverse of a previous Nu.20 banknote

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  Reverse of a previous Nu.20 banknote

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  Obverse of a previous Nu.50 banknote

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  Reverse of a previous Nu.50 banknote

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  Obverse of a previous Nu.100 banknote

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  Reverse of a previous Nu.100 banknote

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  Obverse of a previous Nu.500 banknote

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  Reverse of a previous Nu.500 banknote