Nepal turns to China for banknotes as map dispute complicates Indian role
Nepal has shifted almost entirely to China for printing its banknotes, marking a major change from decades of relying on India.
Beijing’s state-owned money printer, China Banknote Printing and Minting Corporation (CBPMC), has now become Kathmandu’s dominant supplier.
Nepal Rastra Bank (NRB) on Friday issued a letter of intent to CBPMC to design, print and deliver 430 million pieces of the Rs 1,000 note.
The contract is valued at US$16.985 million. NRB said CBPMC was selected as the substantially responsive, lowest evaluated bidder.
CBPMC has now won seven consecutive bids over the past three years. During this period, it will earn about US$63 million for printing roughly 2.38 billion banknotes.
China entered Nepal’s currency-printing market only in 2016. Until then, India had been the traditional source, including printing Nepal’s currency between 1945 and 1955.
India last secured a major contract in January 2023, when NRB chose its Security Printing and Minting Corporation to print 300 million pieces of the NPR 50 note for US$5.048 million.
Cost is not the only factor driving Nepal’s shift. Its new banknotes feature disputed regions with India — Lipulekh, Limpiyadhura and Kalapani — making it politically sensitive for New Delhi to print them.
Nepal also says China offers modern security features and competitive pricing. Other South Asian countries, including Bangladesh, Sri Lanka, Malaysia, Thailand and Afghanistan, also print their currency in China.
This story is written and edited by the Global South World team, you can contact us here.
