Bhutanese currency is known as the Ngultrum (Nu). An ngultrum is tied to the Indian rupee and has the same value. An Indian rupee is legal in Bhutan. However Indian Rupee notes in 500 and 2000 denominations are not acceptable.
The US Dollar (USD) is also accepted in the country for any purpose. An ngultrum’s worth is only about 60-64USD. Many prices at tourist locations and shops are priced in USD. There is an advantage in carrying USD in lower denominations for small purchases. Credit cards are increasingly being accepted for bigger purchase. But you will be charged higher by 3-7% as an extra fee.
Themain banks now have ATMs and you can withdraw local currency via Visa &Master Card credit & debit cards & Cirrus/Maestro endorsed bank debitcards. But the ATMs here are not always reliable and usually you’ll only beable to draw small amounts in a single transaction. Therefore it is alwaysadvisable to have back up cash in USD orIndian Rupees.