Bangladesh Bank Eyes German Firm for Banknote Security Threads

Bangladesh Bank is set to shift from a UK-based supplier to a German company for embedding security threads in the country’s 10, 20, and 50 Taka banknotes. The proposed German firm, Messrs. Paperfabrik Louisenthal GmbH, had previously been shortlisted during the caretaker government’s tenure. According to the central bank, switching to the German supplier could reduce annual printing costs by BDT 40–50 million. The bank has formally written to the Ministry of Finance seeking approval before finalising the contract.

Sources indicate that the letter requesting government approval was sent on 10 February, just two days before the 13th National Parliamentary elections, which resulted in the BNP forming a government with a two-thirds majority. The incoming administration must now decide whether to proceed with the German firm, replacing the UK company De La Rue International Limited.

An international tender for the supply and integration of security threads for the new banknotes was initiated in 2024, covering a five-year contract. When bids were opened on 17 December 2024, three firms submitted proposals. The German company emerged as the lowest bidder. Earlier, on 8 December, Paperfabrik Louisenthal had sent sample threads to Bangladesh Bank. The bank’s Note and Currency Design Advisory Committee examined these samples and approved the German company to supply security threads for the 10, 20, and 50 Taka notes, provided the bank’s logo and text remain visible.

In its letter to the finance ministry, Bangladesh Bank highlighted that the German firm’s Multicord security threads are priced 35.55% lower than De La Rue’s “Starchrome” threads. Sub-committee reports further noted that Paperfabrik Louisenthal quoted €16.60 per kilometre—8.8% less than the UK company’s offer.

Officials emphasise that cost efficiency is only one factor. Tender guidelines and the bank’s banknote specification committee require that contracts be awarded to the lowest bidder for a five-year term. A spokesperson, Arif Hossain Khan, clarified that the decision to engage the German company is a standard procurement procedure, noting, “The letter to the finance ministry simply seeks approval for the lowest bidder. There is no other agenda.”

Previously, the UK firm had supplied security threads under a contract signed during the last Awami League government. While the exact signing date remains unclear, De La Rue had featured Bangladesh’s 100 Taka note graphics in a newsletter dated 15 May 2020. The shift to a German supplier reflects adherence to formal tender protocols rather than political considerations.

Key Tender Details for Banknote Security Threads