China printing currencies for countries like Nepal, Lanka and B'desh

Galtero Lara
Agosto 16, 2018

"Two of the currency note printing presses are owned by the Government of India and two are owned by the Reserve Bank, through its wholly owned subsidiary, the Bharatiya Reserve Bank Note Mudran Ltd. (BRBNML)", RBI's website notes.

Congress MP Shashi Tharoor shared a post on Twitter and questioned Union Ministers, Arun Jaitley and Piyush Goyal on the matter. Not to mention making it easier for Pakistan to counterfeit.

A controversy has sparked in India whether China was given the license to print currency in past following an article titled "Why other countries are giving China a license to print money".

The South China Morning Post report claims that the China Banknote Printing and Minting Corporation has been running to full capacity, despite registering a fall in the local demand owing to a rise in mobile payments in the recent years, reported TOI.

Chadha went on to dub the Modi government's demonetization move as "wasteful and dubious" in making India a cashless economy and said that similarly, the decision of outsourcing the printing of Indian notes to China is "counter-productive and unsafe".

Liu Guisheng also revealed that Nepal was the first country to outsource the printing of its currency to China. It has employed 18,000 people and runs around 10 strictly guarded facilities for the production of paper notes and coins.

Referring to the report, Chadha said that an undisclosed source was quoted as saying that some governments have asked Beijing "not to publicise the deal because they are anxious such information could compromise national security or trigger unnecessary debates at home".

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Which is this Chinese company which is claiming to publish Indian currencies? "Since then 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", reported the daily quoting Liu.

The report claims that despite domestic currency demand being at its lowest, China Banknote Printing and Minting Corporation has been "functioning at full capacity to deliver on worldwide contracts".

The report says, "most of the demand comes from participants in the Belt and Road Initiative", although India has never been and never wants to be part of China's Belt and Road initiative. This was followed by contracts with Thailand, Bangladesh, Sri Lanka, Malaysia, India, Brazil and Poland.

The BRI focuses on improving connectivity and cooperation among Asian countries, Africa, China and Europe.

China is printing other countries' money as it seeks to expand its influence on the global economy.

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

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