Bangladesh Bank is reportedly considering a switch from its current UK-based supplier to a German company for embedding security threads in the newly issued 10, 20, and 50 Taka banknotes. The proposed supplier, Messrs. Paperfabrik Louisenthal GmbH, had been initially selected during the interim government’s tenure. According to bank sources, adopting the German firm’s security threads could reduce annual banknote production costs by approximately 40 to 50 million Taka.
Process and Government Approval
Sources indicate that Bangladesh Bank formally requested approval for a contract with the German company in a letter sent to the Ministry of Finance on 10 February. Two days later, the 13th national parliamentary election took place, resulting in a new government formed by the Bangladesh Nationalist Party (BNP) with a two-thirds majority. Finalising the contract with the German company now requires approval from the incoming administration.
In 2024, Bangladesh Bank issued an international tender for a five-year security thread supply. The tender, opened on 17 December, attracted bids from three companies. Paperfabrik Louisenthal emerged as the lowest bidder. Prior to this, on 8 December, the company had sent sample threads to Bangladesh Bank, which were examined by the Notes and Coin Design Advisory Committee. The committee approved the threads, provided that the bank’s logo and text remained fully visible on the notes.
Comparative Cost Analysis
Bangladesh Bank’s letter to the finance ministry highlighted that the German company’s “Multicode” security threads are 35.55% cheaper than the UK supplier De La Rue International Limited’s “StarChrome” threads.
| Supplier Company | Thread Type | Price per Kilometre (Euro) | Difference vs UK (%) |
|---|---|---|---|
| Paperfabrik Louisenthal GmbH | Multicode | 16.60 | -8.8 |
| De La Rue International Limited | StarChrome | 18.20 | — |
Normal Procedure and Previous Contracts
Officials noted that awarding a five-year contract to the lowest bidder aligns with the standard tender schedule and the Notes Specification Committee’s guidelines. The previous government had signed with the UK-based supplier, and in 2020, De La Rue had featured images of Bangladesh’s 100 Taka note in one of its newsletters.
A spokesperson for Bangladesh Bank, Arif Hossain Khan, stated, “This is a routine process. The letter to the finance ministry was solely for approval to contract the lowest bidder. There are no other considerations.”
If finalised, the new agreement is expected to achieve significant cost savings in banknote production, supporting the central bank’s long-term economic planning objectives.