Nepal Entrusts Chinese Firm for Controversial Currency Print

The Nepal Rastra Bank has commissioned a Chinese company to print 300 million Nepali 100-rupee notes, incorporating a revised map showing disputed territories. Approved earlier this year, the contract totals USD 8.9 million. The new notes feature contentious areas under Indian control, highlighting geopolitical sensitivities.

Nepal Rastra Bank has awarded a contract to China's Banknote Printing and Minting Corporation for printing 300 million Nepali 100-rupee banknotes. This decision follows a cabinet approval to feature a revised political map on the currency, marking territories contested with India.

The project has ignited geopolitical tensions, as the depicted areas—Limpiyadhura, Lipulekh, and Kalapani—remain under Indian administration, with locals holding Indian citizenship and participating in Indian democratic processes. Despite this, Nepal included these regions in a new map released in May 2020 through constitutional amendment.

The contract, valued at USD 8.9 million, reflects ongoing sensitivities in Nepal-India relations. Strategically located, these regions lie across the borders of India and Tibet, emphasizing Nepal's pivotal role as a 'buffer state' between China and India.

(With inputs from agencies.)