Nepal's banknotes are now being printed in China, not India, and this shift has sparked both economic and geopolitical intrigue. But here's where it gets controversial: Is this move purely about cost, or are there deeper political undercurrents at play? Let’s dive in.
Nepal Rastra Bank (NRB), the country’s central bank, recently awarded a $16.985 million contract to China Banknote Printing and Minting Corporation (CBPMC) to design, print, and supply 430 million pieces of Nepal’s Rs 1,000 denomination banknotes. This isn’t the first time CBPMC has won such a bid—in fact, over the past three years, the Chinese state-owned company has secured seven consecutive contracts, earning around $63 million for printing approximately 2.38 billion banknotes. And this is the part most people miss: CBPMC only began printing Nepal’s currency in 2016, marking a significant shift from India, which had been a long-standing partner.
Historically, Nepal’s currency was printed in India from 1945 to 1955, and as recently as January 10, 2023, India’s Security Printing and Minting Corporation Limited was awarded a $5.048 million contract to print 300 million NPR 50 denomination notes. So, why the sudden change? While cost is a factor—CBPMC offered a competitive bid—it’s not the whole story. Here’s the bold truth: Nepal’s new banknotes feature a map that includes the disputed regions of Lipulekh, Limpiyadhura, and Kalapani as part of Nepal, a move that would be politically sensitive for India to endorse by printing the notes.
China’s appeal goes beyond economics. CBPMC offered advanced security features, making Nepal’s currency more secure and modern. Today, all of Nepal’s banknotes are printed in China, a decision that reflects both practical and strategic considerations. But here’s a thought-provoking question: Is Nepal’s reliance on China for currency printing a sign of shifting alliances in South Asia, or simply a pragmatic choice based on cost and technology?
Nepal isn’t alone in turning to China for currency printing. Other South Asian nations, including Bangladesh, Sri Lanka, Malaysia, Thailand, and Afghanistan, also rely on Chinese expertise. CBPMC, the world’s largest money printer by scale, has established itself as a global leader in this niche industry. Alongside CBPMC, other government-run entities like Japan’s National Printing Bureau, Russia’s Goznak, and the US Bureau of Engraving and Printing dominate the market for high-security documents and currency.
Now, here’s where we invite your thoughts: Do you think Nepal’s decision to switch from India to China is purely economic, or does it signal a broader geopolitical shift? Share your views in the comments—we’d love to hear your perspective!
