Bhutan’s currency is called Ngultrum and denoted as Nu. The value of Ngultrum is at par with the Indian rupee which is also in wide circulation in Bhutan except the large bills (Rs 500, Rs 1000 and Rs 2000). In fact, Indian government has demonetized Rs 500 and 1000 bills.
Most hotels, tourist class restaurants and souvenir shops accept major credit cards such as MasterCard and visa. AmexCards are not accepted by many vendors though. However, small stores do not accept credit cards.
There are ATMs located in the main towns of Thimphu and Paro and you can draw money using Visa or MasterCard but there may be high fee by the local bank and also your credit card provider. So, please, check with your bank if they charge any international transaction fee against the cash advance.
Use of traveler checks have declined.
Bhutan accepts foreign currencies US Dollar, Canadian Dollar, Euro, Pound Sterling, Australian Dollar, Japanese Yen, Singaporean Dollar etc. but US Dollar is the most popular.
You can change money at the bank or at your hotel.; The banks that offer money exchange are Bank of Bhutan Limited, the Bhutan National Bank, the Druk PNB and the Tashi Bank.