Is a Chinese Company Dominating the Printing of Nepal’s Banknotes?
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Synopsis
In an intriguing development, a Chinese company has been dominating the banknote printing sector in Nepal for nearly three years. With multiple contracts under its belt, this situation raises questions about competition and economic implications for Nepal. Explore the details of this monopoly and its potential impact on Nepal's economy.
Key Takeaways
- China Banknote Printing and Minting Corporation has won seven consecutive bids in Nepal.
- Contracts awarded during this period total around US$63 million.
- The NRB has issued multiple tenders for various denominations.
- The last Indian company contract was in January 2023.
- Concerns about economic sovereignty are raised by this monopoly.
Kathmandu, Nov 7 (NationPress) China Banknote Printing and Minting Corporation seems to have established a stronghold on the printing of Nepal’s banknotes, having successfully secured bids seven times in a row over the last three years.
Recently, Nepal Rastra Bank (NRB), the nation’s central banking authority, issued a letter of intent to contract the Chinese firm for the design, printing, supply, and delivery of 430 million pieces of NPR 1,000 denomination banknotes, valued at US$16.985 million.
The NRB’s announcement indicated that the Chinese entity was chosen as the most responsive and lowest evaluated bidder.
In the past three years, the NRB has released seven distinct tenders regarding the design, printing, supply, and delivery of various banknote denominations. Each time, the Beijing-based corporation, located in the Xicheng District, emerged as the successful bidder.
Based on the contracts awarded, the Chinese firm is projected to earn approximately US$63 million from Nepal for printing around 2.38 billion banknotes.
This company does not have an extensive history in printing Nepal’s currency notes, as it first won a contract in 2016, as per the NRB.
On October 15 of this year, NRB issued another letter of intent for printing and supplying 420 million pieces of NPR 50 denomination banknotes and related services, with a bid price of US$10.422 million accepted as the lowest.
Earlier, on June 22, the same company was awarded a contract to design, print, supply, and deliver 230 million pieces of NPR 500 denomination banknotes at a bid price of US$9.66 million.
On October 27 last year, the Chinese firm won a bid for printing 300 million pieces of NPR 100 denomination notes for US$8.996 million.
Additionally, on October 8 last year, the company secured a contract for 340 million pieces of NPR 10 denomination banknotes at a bid price of US$7.117 million, marking it as the lowest evaluated bidder.
On July 10 of last year, the company also received a contract for 350 million pieces of NPR 5 denomination banknotes at a bid amount of US$5.158 million, again being the lowest evaluated bid.
Furthermore, on February 12, 2023, the NRB awarded the company a contract for 310 million pieces of NPR 20 denomination banknotes for US$4.698 million.
The last instance in which an Indian company was awarded a similar contract was on January 10, 2023, when NRB issued a letter of intent to Security Printing and Minting Corporation of India Limited for 300 million pieces of NPR 50 denomination banknotes, valued at US$5.048 million.
Previously, on November 30, 2022, the same Indian company had been awarded a contract to print and supply 430 million pieces of NPR 1,000 denomination circulation banknotes for US$11.134 million.
Point of View
It is essential to recognize that the ongoing contracts with a single foreign entity for banknote printing could pose concerns regarding national economic sovereignty and competition. While efficient services are vital, ensuring a diverse pool of service providers could enhance not only quality but also national interests.
NationPress
08/11/2025
Frequently Asked Questions
What company is monopolizing Nepal’s banknote printing?
The China Banknote Printing and Minting Corporation has been monopolizing the printing of Nepal's banknotes for nearly three years.
How many times has the Chinese company won contracts?
The Chinese company has won contracts seven times consecutively in the past three years.
What is the value of the recent contract awarded to the Chinese company?
The recent contract awarded for printing 430 million pieces of NPR 1,000 denomination banknotes is valued at US$16.985 million.
When did the Chinese company first get a contract for Nepal's banknotes?
The Chinese company first secured a contract to print Nepal's banknotes in 2016.
What are the total earnings expected from these contracts?
The Chinese company is expected to earn around US$63 million from Nepal for printing approximately 2.38 billion banknotes.
