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China printing currencies for several countries including Sri Lanka

16 August 2018

RBI Sources Refute ClaimsTerming the reports on China printing India's currency as "baseless", Subhash Chandra Garg, Secretary of Department of Economic Affairs, issued a clarification on Monday, saying that no other country is involved in printing Indian currency.

Congres leader Shashi Tharoor has expressed his concerns that the news, if true, could have national security implications. "Not to mention making it easier for Pak to counterfeit", he tweeted as quoted another tweet carrying the SCMP report.

As per the rumors, Indian Govt. has outsourced the task of printing notes to a Chinese company, which specializes in printing currencies.

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.

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". During the fall of the Libyan ruler Muammar Gaddafi seven years ago, the British government seized $US1.5 billion worth of Libyan dinars originally produced for the dictator by the British currency printer De La Rue, which sparked shortages in the country and put pressure on the state. With more than 18,000 employees, it runs more than 10 strictly guarded facilities for the production of paper notes and coins, the paper said.

The news spread quickly on social media, prompting outrage over how this could endanger national security. The central bank did not, however, dismiss chances of the Chinese state-run company forging Indian currency.

The South China Morning posted quoted a company official as saying that it had "successfully won contracts for currency production projects in a number of countries including Thailand, Bangladesh, Sri Lanka, Malaysia, India, Brazil and Poland".

Two years later China began printing money for Nepal, and today foreign customers of China's industry now also reportedly include Thailand, Bangladesh, Sri Lanka, Malaysia, India, Brazil and Poland and possibly many others that have not yet been disclosed, a source in the corporation said.

China Banknote Printing and Minting Corporation started the process of printing foreign currency notes in 2013.

Launched by Chinese President Xi Jinping, the belt and road plan is a global development blueprint involving about 60 countries from Asia, Europe to Africa to stimulate economic growth through capital investment and infrastructure projects.

The South China Morning Post had reported that there has been a recent surge in printing of notes in money production plants across the country.

"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", the report quotes a person as saying".

China printing currencies for several countries including Sri Lanka