Siliguri/ Phuentsholling( Bhutan): Going far beyond the boundary of common commodities, Covid-19 pandemic has pushed up the cost of even INR currency where it is practically a tradable commodity. Credit goes to the unique situation at areas in West Bengal or Assam adjacent to India’s ‘open’ International border with Bhutan.Pegged with Indian Rupee(INR) at par, Bhutan Currency Ngultrum (Nu) always carries the same official value. Interestingly, though INR is an official tender in Bhutan, Nu is not officially accepted in India. But, it is widely in circulation in areas adjacent to the border. Most of the buyers in Indian markets there are from Bhutan. Under Indo-Bhutan friendship treaty, people from both sides can cross the border without any passport or visa. Also there is no fencing along the border that runs through hilly terrain and deep jungles.” We must accept Nu as most of our buyers from Bhutan pay in cash,” said a trader in Jaigaon, the largest Indo-Bhutan border area trade center in India.As a common practice, Indian traders get their Nu reserve exchanged to INR through unofficial agents against a ‘Fee’ of around 3% to 5% known as ‘Batta.’ In exchange for Nu 100, one gets INR 97 to INR 95. Agents deposit their Nu stock in Indian banks inside Bhutan using their contacts there. Then get it back in INR in India from business associates of those contacts.The lockdown has pushed up that ‘Fee’ to 10% to 20%. “Despite closed border due to pandemic, Bhutanese buyers are coming and inflow of Nu is continuing,” said traders. “The border through difficult hilly terrain and deep jungles is somehow porous at few places,” agreed Shrikumar Bandopadhyay, IG, Sashastra Seema Bal that guards the border.But carrying bulk volume of Nu to Bhutan by-passing enhanced SSB vigil has become too difficult. That has increased Nu stock here increasing the demand of exchange and its ‘fee.’
Now many agents are liquidating their cash INR stock and keeping Nu stored with a plan to get them converted once the pandemic restrictions are over.
