A Chinese company has signed an agreement with the Nepal government to design and print its currency notes. Under this contract, the company will print 430 million pieces of Nepal’s 1,000-rupee banknotes, officials said. Nepal Rastra Bank (NRB) has issued a letter of intent to the China Banknote Printing and Minting Corporation on Friday to design, print, and supply the new currency notes.
According to the Currency Management Department of NRB, the entire project will cost $16.985 million, as reported by news agency PTI. The Chinese company was selected because it submitted the lowest evaluated bid. The China Banknote Printing and Minting Corporation has earlier printed Nepalese currency of Rs 5, Rs 10, Rs 100, and Rs 500 denominations.
In recent years, China has been trying to increase its political and economic influence in Nepal. India, which shares deep cultural, religious, and diplomatic ties with Nepal, views China’s growing involvement with concern, as it could affect India’s traditional position in the region.
Nepal has recently come out of a large-scale protest led mostly by young people, which resulted in the collapse of the government. Prime Minister KP Sharma Oli resigned after widespread unrest. Several ministers were attacked, chased, and their homes were set on fire by angry protesters. Rajyalaxmi Chitrakar, wife of former Prime Minister Jhalanath Khanal, died after her home was burnt down. Protesters also stormed and set fire to key government buildings, including the Parliament, the Prime Minister’s residence, and the President’s house.
The reason for the uprising was a government decision on September 4 to block 26 social media platforms, including Facebook, Instagram, YouTube, WhatsApp, and X. However, the protests soon grew larger, as young people marched against rising corruption, lack of accountability, and growing inequality. Many people referred to the movement as the “Gen Z Protest” or the “Gen Z Revolution.”
Is it a Diplomatic Defeat for India?
Nepal choosing a Chinese company to print its highest-value banknotes shows that China is steadily gaining ground in sectors where India once had deeper influence. It suggests that Nepal is diversifying its partnerships, and China is filling that space aggressively. Nepal has just emerged from a major political crisis, and during such unstable phases, external influence becomes easier. If China strengthens ties through economic deals, infrastructure, or security cooperation, it could gradually reduce India’s leverage.
It is a reminder that India needs to re-energize its outreach, rebuild trust, and engage Nepal more effectively. Otherwise, small steps like this can add up and reshape influence in the region.
-
-
-
-
-
-
