A severe rupee shortage threatens to cause an economic crisis. But the government is in denial. As recently as last week, the finance minister blamed the media for blowing up the issue.
On the other hand, the RMA governor has declared that, “we have no money.” And he has already stopped issuing rupees to commercial banks. He has also warned that we can no longer sell our foreign reserves to buy rupees.
The RMA has had to borrow rupees to allow for the import fuel and other essential items. But traders are already complaining that they cannot do business. And industrialists worry that they won’t be able to import raw material.
Ordinary people are also being affected by the rupee crunch. Mr Vinod Kumar, for example, sent me this self-explanatory email, which I’m reproducing here with his permission.
I am a teacher working in Rangjung HSS. I am an Indian working in this kingdom for the last 7 years. I am sending this mail to draw your kind attention to a serious issue that we are facing. This month when we (expatriate teachers) went to the BOB Trashigang to send money to India, BOB officials told us that sending money to India is not as easy as before. They told us that the RMA has put some restrictions to send money to India. They told us that we need to register first and after 7 days if it is approved by RMA, then we can send money. We are here leaving our family behind to support this country and make a good future for us. If we are not able to send our hard earned money to our beloved ones, it is a disheartening thing. On them other hand, BNB so far did not get this type of circular from RMA. So please look in to the matter and if sir could make the money transfer of the civil servant as before we will be grateful to you sir.