Published: Thu, August 16, 2018
Finance | By Claude Patterson

More and more countries are having their banknotes printed in China

More and more countries are having their banknotes printed in China

The Ministry of Finance rubbished the reports claiming that a Chinese company has been given a contract to print Indian currency.

State-owned China Banknote Printing and Minting Corporation (CBPMC) is printing the banknotes of foreign countries at full capacity, company sources report.

Getting notes printed from China has become popular among developing countries since the sophisticated and costly technology needed for the metallic ribbon, embedded thread, and colour-shifting ink is beyond their reach.

China Banknote Printing and Minting Corporation, a Chinese company claimed that it has won the contract and has been given the license to print Indian currency notes.

Liu Guisheng, Chairman of China Banknote Printing and Minting Corporation, wrote in an article in May in China Finance, a bi-monthly journal run by China's central bank, that China obtained the first global commercial order for printing money from Nepal in 2015.

"With the sudden arrival of big orders", China's largest currency paper mill in Baoding, Hebei province, sprang in to action.

The Reserve Bank of India has time and again asserted that the country's currency gets printed only within India.

Congress MP Shashi Tharoor was quick to tweet that allowing China to print India's currency could have "disturbing national security implications".

The report states that in 2013, Beijing launched the belt and road plan which involved 60 countries from Asia, Europe and Africa to stimulate economic growth. "Not to mention making it easier for Pak to counterfeit", he tweeted as quoted another tweet carrying the SCMP report.

RBI sources had clarified that the reports of licensed printing of Indian currency in the South China Morning Post were false.

The article also qouted an official saying that Yuan bills accounted for only a small portion of the orders and added that most of the orders had come from countries which have partnered with China in its 'Belt and Road initiative'.

The corporation's president Liu Guisheng is quoted as saying that "the company had "seized the opportunities brought by the initiative" and "successfully won contracts for currency production projects in a number of countries including Thailand, Bangladesh, Sri Lanka, Malaysia, India, Brazil and Poland". "Beijing has regarded money printing capability as being as crucial as its atomic bomb programme to its national security amid fears its enemies could use fake notes to disrupt the economy", the report says.

China is now the only country that can perform the Intaglio style of printing, which involves raising the print simultaneously on both sides of a banknote.

Opposition says BJP-led government compromising national security, financial sovereignty; government denies report.

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