Currency Printing: These countries of the world do not print their notes, this is how they manage their currency

Currency Printing: Printing currency is not just a routine task but it is a very strategic decision for any country. Control over currency production ensures security, prevents counterfeiting and also helps control the economy and inflation. Although most countries have the resources and technology to print their own currency, there are some countries which do not print their own currency. Let us know about those countries.

Dependence on foreign currency printers

Many countries are unable to set up modern printing facilities. For this reason they depend on foreign countries for the production of their bank notes. In Asia, the currency of countries like Nepal, Bangladesh and Sri Lanka is printed in China. China’s advanced machinery, utmost safety measures and huge capacity make it a reliable partner. China prints its own currency, the Yuan, and also meets the needs of neighboring countries by producing their banknotes with accuracy and security. At the same time, India prints its own currency domestically to maintain complete control over security and economic policy.

Africa’s dependence on external printing

There are similar situations in Africa also. Nearly two-thirds of the continent’s 54 countries are completely dependent on foreign printers for their bank notes. Countries like Nigeria, Kenya, Zambia and Tanzania get their currency printed by companies based in the United Kingdom and Germany.

Why do countries choose overseas printing?

Actually printing currency is an expensive and technically demanding process. For this, special paper, high quality ink, security thread, hologram and other security things are required. For small or developing countries, the initial investment and ongoing maintenance of such technology can be very troublesome. By outsourcing the production of currency, these countries can obtain high quality banknotes without the huge costs of domestic production.

What is the danger behind this?

Actually, outsourcing the printing of currency is a very risky task. Whenever a foreign company or country produces bank notes of any country, it gets access to the necessary security details. If no proper security measures are taken then the risk of fraud increases. Therefore, for such work, those countries should be chosen as partners on whom there is complete trust.

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