Thursday, April 5, 2012

The Value of Crown’s head

I am not an economist and I even don’t know the monetary system in the country. I can only count the cash but the financial crisis or the financial crunch is new to me. My economic teacher taught me when supply and demand do not match inflation and deflation happen. I think this is true in every aspect of our life. When boys outnumbered girls, there are demands from girls. Similarly, when production doesn’t match with market value there is inflation. Now, what the hell is with the Indian rupee and Bhutanese Ngultrum. In border towns like Jaigoan, Samdrupjongkha, etc, the rupee has become scarcer than kidney patient looking for kidney donor, and on the other hand, Ngultrum is just stacks of papers in the hands of merchants.
In this crisis, I walked downtown to experience its affect and effect and to believe it myself. I stopped in a shirt shop to buy a shirt. I intentionally wanted to give the shopkeeper a shock by showing a bundle of Bhutanese notes. After fixing the price at nu. 250/- I took out Bhutanese notes but the salesperson's sudden crafty look at me was an answer to me. He repulsively said he doesn’t accept BC and he demanded IC and if I have to pay BC, I have to pay 300, that is 50 extra. He also said to my ears that if I bring an IC of 1lakh, he would exchange and give me an extra ten thousand BC. I was wondering whether the barter system was creeping in and if it was so, paper cash was thoroughly useless as it didn’t have value. I just blindly agreed that I would try and this trying would be not trying at all, as recently a policeman was caught red-handed for exchanging IC with BC at a higher rate. That policeman was red-handed by the shamus. I have a feeling that when it comes to money it would be the first from the law upholder to become a violator or lawbreaker. I laughed at this joke. I have heard Bhutanese people are making big business with this crisis. I remember my father saying to me, “When one bull falls, another rises.” My brother, who is a banker told me that we Bhutanese are real bulls to do business that would affect one’s country gravely. I didn’t understand him. I am thick-headed on this matter. Anyway, trade value or exchange value in the bordering town is 100 IC for 120 BC and it may rise. The value of the crown’s head is losing under the lion’s head. On the other hand, the government pays five percent on GoI facility and 10 percent on SBI overdraft facility.
I popped in my old shopkeeper friend who sells undergarments; I was there in his shop after three years (after these three years because I bought seven different garments from his shop at one shopping that would last for more than two years. The seven garments I bought from his shop made him crazy that would develop into a sort of underwear friend, and now…now…now I realized that have I really been economical to spend so much on small garments at one go. It was buying two cars when only a car is in need). He greeted me warmly to shoot me about the rupees crisis. “Who am I to control,” I asked myself. I said that the government is discussing it and it will be solved soon. After some blab…blabs. He friendly warned me that Bhutanese are great spendthrift and spend without any saving. I asked about how much money he gets every day from Bhutanese customers and his reply were astonishing when he says that he gets about ten thousand or more every day. His was a small shop and if small shops like his could get so much amount, what about others. There is little or nothing that Bhutan exports but it only imports a great deal. 90 percent is imported from India, going money outside and especially border areas are flooded with Ngultrums. He had the same story that he needs IC to roll his business and like other businesspeople, he said in the name of friendship he would give me better exchange than others would. I will try was a good reply that wouldn’t hurt him.

Bhutan’s financial institutions like BOB, BNB, etc have closed all loan schemes to curbed the crisis. Analyst says that it is a temporary measure but the recent talk by prime minister’s representative Lyonpo Yeshey Zimba was a scary one, who says that Bhutan would be reducing the size of the developmental plan/budget in the next Five Year Plan. Is this a good way of solving the crisis? The present ruling party mustn’t only buy up for their own homes but for the country’s good also.  


No comments:

Post a Comment