The unit of currency is the ngultrum (Nu), which is equivalent to one Indian rupee. The ngultrum is further divided into 100 Chetrum. There are notes of Nu 1, 5, 10, 20, 50, 100 and 500, each depicting a dif­ferent dzong. There is a handsome Nu 1 coin that depicts the eight auspicious symbols. Indian rupees may he used freely anywhere in Bhutan, but ngultrum are not at all welcome in India.

Exchanging Money - Since your trip is fully prepaid, theoreti­cally you could manage in Bhutan without any local money at all, though you'll prob­ably want some to pay for laundry, drinks, souvenirs and tips. You'll also need Nu 300 for airport tax on departure.

The exchange counters at the airport, larger hotels and the banks in Thimpu and Phuentsholing can change all the currencies listed, and sometimes Scandinavian currencies. If you are heading to central and east­ern Bhutan, you will do better with more common currencies such as US dollars or pounds sterling. You may change your unused Ngultrums back to foreign currency (though usually only into US dollars) on departure if you can produce your original exchange receipts.

Bhutan has two banks, each with branches throughout the country. While the Bank of Bhutan still uses an antiquated hand-written ledger system, the Bhutan National Bank is a modernized operation, with a computer system and relationships with major overseas banks, though it has branches only in Thimpu, Phuentsholing and Trashigang.

Travelers' Cheques - You can cash travelers' cheques at any bank, most hotels and the foreign-exchange counter at the airport. You should carry only well-known brands such as American Express, Visa, Thomas Cook, Citibank or Barclays. Chhundu Travels in Thimpu can replace lost American Express travelers' cheques. There is no replacement facility for any other travelers cheques in Bhutan.

Credit Cards - American Express, Visa and MasterCard are accepted at the government-run Handi­crafts Emporium, a few other handicraft shops and some of the larger hotels in Thimpu, but these transactions take extra time. The credit card companies charge high fees and the verification office is only open from 9am to 5pm. This precludes pay­ing your hotel bill at night or when you check out early in the morning.