[2][4] The Constitution of 2008 specifically authorizes the government to manage public finance and the monetary system, affirming previous law.

With the objective of setting up an institution capable of performing a minimum of central banking functions and one that could generate information adequate for monetary management, the Government requested the IMF for technical assistance in July 1981.

Subsequently, Mr. Rechards H. Miller, Advisor, Central Banking Department IMF was appointed to study feasibility and recommend legal frame to set up a Monetary Authority.

Immediately after the enactment Her Royal Highness HRH Ashi Sonam Chhoden Wangchuck, Representative of His Majesty in the Ministry of Finance was appointed as its first chairman while the current Minister of Work and Housing Lyonpo Yeshey Zimba became the founder managing director of the RMA.

As organizational capacities developed, particularly after the appointment of Mr Rabenath Mitra, a retired executive director of RBI in August 1983 as General Advisor under the IMF Technical Assistance, these responsibilities were gradually shifted to the RMA in a phase manner.

On November 1, 1983, the RMA started its actual operation by taking over the liability of notes and coins previously issued by the Ministry of Finance.

In 1985, the IMF appointed Mr. Klaus Dornseif, Bundes Bank Germany, as an advisor in setting up Research and Statics Department and was instrumental in bringing out the first Annual Report in the same year besides other publications such as Quarterly Economic Indicator in 1986.

With the historic enactment of the Royal Monetary Authority Act of Bhutan 2010, and the appointment of Bhutan's first Central Bank Governor, Dasho Daw Tenzin by the 5th Druk Gyalpo on August 18, 2010, the status of the RMA has been elevated to that of an autonomous Central Bank with greater powers in terms of its mode of functioning and decision-making process.

[nb 9] The Act of 2010 further promulgates a code of professional and personal conduct, integrity and secrecy requirements, duties under conflict of interest, and a law of accountability for those employed in the Authority.

[nb 10] The Act of 2010 also codifies the role of the Authority in currency, exchanges, official practices, and defines related penal offenses.