Bhutan’s External Reserves Fluctuate in First Half of 2023

…𝑱𝒖𝒍𝒚 2023 𝒓𝒆𝒑𝒐𝒓𝒕𝒆𝒅 𝒂 𝒅𝒆𝒄𝒍𝒊𝒏𝒆 𝒊𝒏 𝒕𝒐𝒕𝒂𝒍 𝒓𝒆𝒔𝒆𝒓𝒗𝒆𝒔 𝒕𝒐 513.90 𝒎𝒊𝒍𝒍𝒊𝒐𝒏 𝑼𝑺𝑫, 𝒘𝒊𝒕𝒉 𝒇𝒐𝒓𝒆𝒊𝒈𝒏 𝒄𝒖𝒓𝒓𝒆𝒏𝒄𝒚 𝒓𝒆𝒔𝒆𝒓𝒗𝒆𝒔 𝒅𝒓𝒐𝒑𝒑𝒊𝒏𝒈 𝒕𝒐 472.40 𝒎𝒊𝒍𝒍𝒊𝒐𝒏 𝑼𝑺𝑫

Phurpa Wangmo

The Royal Monetary Authority of Bhutan recently released a report shedding light on the country’s external reserves from October 2022 to July 2023. This data provides valuable insights into Bhutan’s economic stability in the face of global uncertainties.

In October 2022, Bhutan’s external reserves started on a positive note, totaling 797.62 million USD. The composition of these reserves included foreign currency reserves, consisting of Convertible Currency, Indian Rupee (INR), and Monetary Gold, amounting to 759.16 million USD. Special Drawing Right (SDR) holdings made up 32.09 million USD, and the Reserve Tranche Position in the IMF was 6.37 million USD.

However, as the months progressed, Bhutan’s external reserves witnessed a moderate decline. By November 2022, the total reserves had decreased to 773.17 million USD, with foreign currency reserves dropping to 734.45 million USD. SDR holdings remained relatively stable at 32.31 million USD, and the IMF reserve tranche stood at 6.41 million USD. December 2022 saw a further decrease, with the total external reserves dwindling to 766.63 million USD.

This downward trend continued into the new year. In January 2023, total external reserves stood at 663.69 million USD, with foreign currency reserves at 625.00 million USD. SDR holdings and IMF reserve tranche position remained relatively unchanged. By February 2023, the total reserves had decreased to 628.00 million USD.

However, there was a slight uptick in external reserves in March 2023, with the total increasing to 690.57 million USD, and foreign currency reserves reaching 652.03 million USD. SDR holdings were 32.17 million USD, and the IMF reserve tranche remained at 6.37 million USD.

April 2023 saw another dip in the total external reserves, with figures at 627.30 million USD, and foreign currency reserves dropping to 585.86 million USD. May 2023 brought a modest recovery, bringing the total reserves to 549.08 million USD, while foreign currency reserves were at 507.74 million USD.

The external reserves continued to fluctuate in the following months. In June 2023, total reserves stood at 573.61 million USD, with foreign currency reserves at 532.23 million USD. July 2023 reported a decline in total reserves to 513.90 million USD, and foreign currency reserves dropped to 472.40 million USD.

These fluctuations in Bhutan’s external reserves during the first half of 2023 reflect the dynamic nature of global economic conditions. It will be essential for Bhutan to continue monitoring and managing its reserves to ensure economic stability in an ever-changing world.