In the last 24 hours, rumor mills were abuzz with reports that Indian currencies has been printed in China.
As per the rumors, Indian Govt. has outsourced the task of printing notes to a Chinese company, which specializes in printing currencies.
Govt. of India has vehemently denied these rumors and have described them as ‘baseless’.
Which is this Chinese company which is claiming to publish Indian currencies?
What is the truth?
Chinese Media: Indian Currencies Are Make in China!
Alibaba owned newspaper: South China Morning Post has published an article, which claims that a Chinese currency printing company has received order to print currencies of several countries, including India.
Now, this news has raised eyebrows, because the concerned company which is alleged to have received the order to print currencies is state-owned.
The article, whose title read, “Why other countries are giving China a licence to print money” reads: “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,” he said.” [He is Liu Guisheng, president of the China Banknote Printing and Minting Corporation, China]
Govt. Of India Denies These Rumors
The Secretary of the Department of Economic Affairs has issued a statement, denying this news.
Subash Chandra Garg, Secretary of Department of Economic Affairs said, “Reports about any Chinese currency printing corporation getting any orders for printing Indian currency notes are totally baseless.”
He said that all Indian currencies are Made in India, and they are never ‘outsourced’ to any private company, leave alone Chinese!
Is China Really Printing Currencies Of Other Nations?
Yes, this is indeed true.
In 2015, Nepal became the first country to outsource their currency printing tasks to China Banknote Printing and Minting Corporation.
Soon after, countries like Sri Lanka, Thailand, Malaysia, Brazil, and Poland gave the contract to this company for printing currencies, and somehow, India’s name was added in the list.
As per the article, use of currencies in China has decreased substantially, as digital payments have taken over. But despite this, China Banknote Printing and Minting Corporation has 18,000 employees, and operate from 3 heavily guarded facilities.
In comparison, De La Rue, which is World’s 2nd largest currency printing company based in the UK, has only 3,000 employees.
What Makes China Special?
Chinese have developed a unique Intaglio style of printing, which no other country has access to: This involves ‘raising the print simultaneously on both sides of a banknote.’
Chinese also use holographic feature called ColorDance, which reduces the cost of safety features in a currency note.