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Why do some countries print their currency in others?
The Economy News - Baghdad:
The currency represents the national façade of any country along with its economic importance, and a number of symbols and objects that suggest the history of the country are often printed on these currencies, whether paper or metal .
Many countries of the world resort to printing their local currency in other countries, which calls into question about this. Why can't we print our local currency ourselves? What are the risks of this matter ?
A small number of countries print their currency within the country's borders. For example, India prints its currency on its territory, while a law in the United States of America requires that the currency be printed within American territory .
A number of international companies specialize in currency printing, perhaps the most famous of which is the British company De La Rue , which prints 11 percent of the currency in the market .
Where you print about 140 currencies of central banks in the world, and ironically, if we want to accumulate the currencies that you print within a week, you will reach an increase equivalent to the height of the Everest summit .
It is mentioned that the major companies specialized in currency printing are distributed in North America and Europe .
Why countries do not print their currency
The process of printing currencies is considered expensive and complicated, and companies that do this work for hundreds of years have acquired great experience in this field, where they have the necessary equipment in addition to the safety standards that follow .
Fsharkp De La Rue began producing leaves cash since 1860, and was Muruiius the first country to ask the company to print its currency, Kamal company produces new plastic banknotes for the Bank of England from class 5 and 10 pounds .
It makes sense for small countries to print their currency abroad. For example, the United States of America prints approximately 7 billion banknotes annually .
How dangerous is the printing of currency outside the country?
The 2011 incident in which Britain detained 1.86 billion Libyan dinars is an example of the seriousness of such matters, as this led to a lack of cash in the last days of Muammar Gaddafi's rule.
De La Rue had a share of 140 million banknotes printed by the company .
The Russian "Guznak" company is considered one of the largest international companies in this field, as it has customers in more than 20 countries in Asia, Africa and Europe. In 2014, the company produced 1.1 billion banknotes, in addition to the production of passports and coins. .
For example, the Russian company issues and prints the Lebanese currency, "the lira", where printing a package containing 1000 Lebanese banknotes costs Lebanon 60 euros, and therefore printing ten packages of the smallest Lebanese paper money category costs 10 percent of its value. As for knowing the amount of Lebanese money printed in Russia, it is difficult due to the presence of strict secrecy .
According to Russian company sources, the printing of Lebanese funds in Russia dates back more than 10 years. Lebanon is not the only country that prints and imports its money from Russia, as there are countries such as Syria, Laos, Malaysia, Belarus, Guatemala and other countries .
Dealing in cash with technology
The use of cash in its various forms is diminishing by the day, especially in the developed countries, where the technology sector witnessed a great revolution, which led to the introduction of payment technologies via mobile phones .
In a 2016 statistic of the Chinese Central Bank, only 10 percent of commercial transactions were made in cash, and the rest were electronically via smartphones .
But despite new technologies, the demand for banknotes all over the world continues to grow globally, growth is 3.2%, and the market is estimated at $ 10 billion .
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