Revisions to the description of the exchange restrictions maintained by Bhutan under the transitional arrangements of Article XIV are reflected in this section, which result from findings made by IMF staff following a TA mission in 2016. These refer to: (i) the elimination of a previously identified restriction on the availability of FX for importers who are not able to provide the identity of the seller, because staff confirmed that to obtain an import license the importer indeed has to disclose the identity of the seller; and (ii) the reintroduction in the list of a restriction arising from a 2002 measure restricting the availability of FX for importers who have not provided evidence that goods for which payments have been made were actually imported, as the information that staff had about the removal of this measure at the time of the 2009 Article IV consultation was incorrect given that the measure continues to be present in the 2002 Rules and Procedures on Imports from Third Countries, at Section C.12(v).”
The current international transactions for which access to Indian rupees is limited are: personal and business travel and study-abroad living arrangement, moderate family remittances, advance payments for imports from India, and advance salary payments to recruit Indian workers.
On September 1, 2014, the RMA reintroduced housing and vehicle loans (after temporary suspension of access to Indian rupees to finance imports of personal vehicles and housing construction materials in March 2012). This measure removed the previous exchange restrictions found on the access to Indian rupees for imports of certain construction materials and vehicles from India. Staff also found that the exchange restriction on access to Indian rupees for salary remittances by non-residents has been removed. For a description of the measures which lead to the remaining findings of exchange restrictions outlined above, please see IMF Country Report No. 14/179 (Informational Annex).