China is printing foreign currency notes on a “massive scale” including India, according to a report published in the Hong Kong-based national daily, the South China Morning Post (SCMP).
The report triggered a massive debate on social media, with many including opposition Congress leader Shashi Tharoor, raising questions over national security, given the recent tensions between the two Asian giants.
The claim was later categorically denied by Economic Affairs Secretary Subhash Chandra Garg, who said the report is totally baseless and also assured that all currency notes are being printed within the country.
While the federal governed has rubbished the media report, the Reserve Bank of India has still not offered any clarification.
The SCMP report mentions that Beijing is printing foreign currencies on a huge scale to widen its influence on the global economy and increase its impact on foreign policy matters.
The report further highlights that China Banknote Printing and Minting Corporation, a state-owned company which claims to be the world’s largest printer by scale is also producing currencies for many other countries including Nepal, Thailand, Bangladesh, Sri Lanka, Malaysia, Brazil and Poland.
The trend of outsourcing currency printing is gaining traction, particularly in developing countries since most of them cannot afford the advanced technology needed to print the currency, especially for inscribing enhanced security features such as metallic thread, the optically variable ink or the Intaglio also known as the raised printing technique.
The SCMP report indicates that China has an upper hand in the money printing business since it can provide these security inscriptions at relatively lower rates than its western counterparts.
