The Royal Monetary Authority (RMA), Bhutan’s central bank, has reported a significant profit increase, surpassing Nu 5 billion as of April 30, 2025, compared to the same period last year. This remarkable growth underscores the RMA’s robust financial performance and its pivotal role in the nation’s economic stability.
The surge in profits is attributed to several key factors:
Increased Credit to the Private Sector: The RMA projected a 22.6% growth in private sector credit for the fiscal year 2023-24, reaching Nu 204 billion. This expansion has facilitated greater consumer spending and business investments, contributing positively to the economy.
Economic Stimulus Programme (ESP): In August 2024, the government unveiled a Nu 5.3 billion ESP aimed at stimulating economic growth. The program provided concessional loans and a reinvigoration fund for distressed businesses, bolstering economic activity and, by extension, the RMA’s profitability. (thebhutanlive.com)
Foreign Exchange Reserves: As of December 2024, Bhutan’s foreign exchange reserves stood at USD 700.51 million, a 15.39% increase from the previous year. This growth, driven by external grants and loans, has enhanced the RMA’s financial position.
Despite the RMA’s impressive profit, the broader financial sector faced challenges in 2024. Many financial institutions reported decreased profits compared to 2023, with the Bhutan National Bank (BNB) experiencing a decline from Nu 1.156 billion to Nu 660.95 million. This trend highlights the RMA’s exceptional performance amidst a challenging economic landscape.
The RMA’s profitability is also influenced by its investments in emerging sectors. Notably, the RMA has engaged in crypto asset mining, leveraging Bhutan’s low-cost hydropower and favorable climate conditions. This venture has the potential to generate substantial returns, further bolstering the RMA’s financial standing.
In summary, the RMA’s significant profit increase as of April 30, 2025, reflects its effective monetary policies, strategic investments, and the successful implementation of government initiatives aimed at economic growth. This financial strength positions the RMA to continue supporting Bhutan’s economic development and stability.
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