Wednesday, April 11, 2012

Rupee crunch and Implication II


However there is no way Bhutan can be complacent about it. As much as people do not want to call this a crisis, the light at the end of the tunnel is dim and we are in for a serious trouble.

Our Ngultrum is highly pressured and is increasingly being pushed to the limit. The Royal Monetary Authority, in a bid to maintain this “peg at par” rate with Indian Rupee, is heavily borrowing. As much as the borrowings from Indian banks help provide much needed rupee in the economy for now it is also increasingly adding up to the already high debt service ratio of our country. Prices of almost all commodities in the market have increased. Investments are halted. Black market is said to be setting in if it is not already in operation. Thought not pronounced, unemployment and layoff in some of the companies seem imminent. 

This is no time for hallow promises that “Everything is going to be okay.” This is no time for blame game. It is time indeed for people in the authority to come up with a viable and sustainable solution.  I for one, for that matter, wouldn’t hide my audacity, beside others, to review the rationale and appropriateness of current pegging system in lieu of the changed economic environment we are in.

May the wisdom prevail for all times to come.

No comments:

Post a Comment