Surprise scrapping of high-value notes still haunts Nepal, Bhutan

The Indian rupee is widely used in two of India’s important neighbours, Nepal and Bhutan.
The Indian rupee is widely used in two of India’s important neighbours, Nepal and Bhutan.PHOTO: REUTERS

Close to two years since India's surprise move to withdraw high-value currency notes in November 2016, the impact of demonetisation continues to haunt two of its important neighbours - Nepal and Bhutan.

India has yet to exchange old notes worth more than nine billion rupees (S$170 million) that are in the hands of individuals and financial institutions in Nepal. Bhutan, on the other hand, fears another round of demonetisation and has urged its nationals to be cautious when handling Indian currency.

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A version of this article appeared in the print edition of The Straits Times on September 12, 2018, with the headline 'Surprise scrapping of high-value notes still haunts Nepal, Bhutan'. Print Edition | Subscribe