<P> The Royal Monetary Authority of Bhutan (Dzongkha: བྲུག ་ རྒྱལ ་ གཞུང ་ དངུལ ་ ལས ་ དབང ་ འཛིན ་) is the central bank of Bhutan and is a member of the Asian Clearing Union . It is also the minting authority for the Bhutanese ngultrum . The Royal Monetary Authority of Bhutan was established under the Royal Monetary Authority of Bhutan Act of 1982 . Subsequently, the Act of 1982 was amended by the Financial Institutions Act of 1992 and replaced in its entirety by the Royal Monetary Authority Act of 2010 . </P> <P> The Royal Monetary Authority was established in 1982 . The following year, it took on the responsibilities of issuing Bhutanese currency, managing external reserves, and operating foreign exchanges . In 1988, the Authority assumed the role of government banker, holding the bulk of government deposits and providing financing . With the passage of the Financial Institutions Act of 1992, the substantive framework of the Authority was expanded to include licensure, regulation, and inspection of financial institutions in Bhutan . The Constitution of 2008 specifically authorizes the government to manage public finance and the monetary system, affirming previous law . Public finance is backed by the Consolidated Fund, while the monetary system is the purview of the Central Bank . </P> <P> The Royal Monetary Authority Act of 2010, the latest legislation on the Royal Monetary Authority, streamlined the codification of its functions . The Act of 2010 refines the framework of the Board of Directors and Executive Committee, which comprise the administration of the Authority . It also establishes an Audit Committee for internal auditing confirmed by external audits by the Royal Audit Authority, and for publication of statistics . </P> <P> The Board of Directors is a rulemaking authority consisting of seven people: a royally appointed Governor, as chair; two Deputy Governors, one of whom serves as Secretary; and four others appointed by the government including one member of the Ministry of Finance . The appointed members hold office for five years, may be reappointed once, and are forbidden to hold political affiliations or substantial interests--including any shares--in financial institutions . The Deputy Governors are appointed by the Board itself . The Board, in addition to its rulemaking authority, is also authorized to establish divisions and delegate functions as it sees fit . </P>

Royal monetary authority of the kingdom of bhutan