Skip to main content

A Crisis is brewing


They came in scores to do their last transactions  
As reported in the media today, thousands of Indians swarmed the local banks the other day. In order to address the IC crunch had ordered all the banks to close the accounts held by non-residential Indians. Thousands of Indian businessmen applied to close their accounts in the banks and withdrew the amount in Indian Rupee. There was a huge rush everywhere as the Central Bank announced in their directives that accounts (savings, CD, FDR, RD, etc.), which are closed on before 9th March may be settled in Indian Rupee. Therefore, there was so much hustle and bustle in the banks, especially in the border towns.  Indians came in scores and took their money worth millions (almost emptying the banks).

Seriously, this is a crisis in the making.

With the closure of accounts and settlement of account balances held by Indian nationals is a short-term solution. How would it ease the rupee crunch? I am not a financial expert, but my layman’s understanding tells me that with this decision, now more than ever we would have more demand for Indian currencies because until now only major construction companies had the need to pay their business counterparts in INR. But now even a pan-shop owner will need to make payments in Indian currency. That will have direct bearing on the number of Bhutanese who require rupee. 

Now the business transactions across the border town will be limited to Indian currencies only. And Bhutanese shoppers will continue to buy goods from the border towns (as any sensible people would).
And soon I won’t be surprised if the prices of essential commodities shoot up. The cost of living will go up. Rents will skyrocket. Driving will be more expensive. Less and less people will be able to construct houses, adding fuel to housing crunch we already have. That’s when I see further inflation creeping in.

We are already feeling the pinch. Just to update you today Indian shopkeepers have started demanding payments to be made only in rupee. This way now even someone in the street, who earlier no need whatsoever to possess Indian currency, will now have more need for rupee. And that ultimately have direct bearing on the crunch.

Tomorrow is a new day and we pray something dramatic happen to rescue us all. 

Comments

  1. Everything u say here is true.

    I came back without shopping after every shopkeeper of Jaigoan started asking IC. Our ngultrum is just a paper in their areas.

    ReplyDelete
  2. Good piece. Why not evaluate Nu against Rs and stop these charades once and for all! After all it's people at the lower rung whose going to be affected the most.

    ReplyDelete

Post a Comment

So what do you think?

Popular posts from this blog

We killed our Golden Goose

One of our most significant events this year is that of Bhutan’s exporting of eggs to India. A few years ago, we were importing them – in truckloads. This goes to show that we have the potential to grow and progress as a country, provided we put in a little more effort and work harder. Did you know, Bhutan today has 422,648 hens and produces 251,678 eggs a day? 
In July 2016, Bhutan Agriculture and Food Regulatory Authority (BAFRA) banned the import of chilies from India reasoning that the laboratory tests conducted confirmed presence of pesticides. And right there was our opportunity to grow on our own. The news was like winning a lottery and it sure was a boon to many a Bhutanese chili growers, as they now had ready market san competition from cheap chilies from across the border.

Then came the ‘off season’. That is when the price of chilies unreasonably shot up as high as Nu. 300-400 per kg. It was unreasonable and daylight robbery, many people protested. And then people took to the …

Can we build energy-efficient houses?

Before we know it, it is winter again! Almost! 
And like all winters this winter will be unforgivingly cold. Of course, some people think winter cold is far less severe than the extreme summer heat the likes of which you experience in Phuentsholing or Gelephu. The reason they give is that while you can dress in cool and warm clothes in winter to beat the cold, the summer heat has almost no solution. Being naked does not help. Fair argument, I must say, but some people who can afford air conditioners in their homes might argue that the answer to the summer heat is in installing the equipment. 
But I think the answers to both the extreme summer heat and unbearable winter cold rest with the energy efficiency of the buildings we live in. 
Rooms in some of our apartments are unusually tall that in order to change a fused electric bulb requires you to literally climb onto two or three tall tables stacked onto each other. It takes three to four solid men or women to hold these tables in place; …

We need Potholes Org

This is in continuation of my previous post where I mention that with the onset of winter the potholes on some sections of our roads "are finally giving us true pictures of how deep they are as the water in them dry up." 
Like the dust in the air, potholes are undesirable; they are nightmares for the drivers, fatal for the cars and spell danger for the pedestrians. I say dangerous because there are chances that drivers might lose control of their engines while trying to avoid these potholes and such incidences would lead to loss of human lives. 
We all know that the Department of Road (DOR) is doing an excellent job in building our roads. And the magnitude of the work they are executing everywhere, even as I type these lines, is truly impressive. Thank you, DOR for that. 
And potholes, I believe, are like wounds on a human body. If we take care of wounds from the beginning and treat them with care, they heal in time. Such wounds, when healed, leave no visible scars on our skins…