UANI’s Currency Printing Campaign highlights the activities of multinational currency printing companies that provide materials necessary for the Iranian regime to counteract the effects of sanctions on its currency. By increasing the printing volume of the rial, the regime bolsters its floundering currency and masks the disastrous impact of its political decisions and economic mismanagement.
The decline in the value of the rial and the growing gulf between the official and unofficial exchange rates demonstrates that the Iranian regime’s political decisions and economic mismanagement have degraded the Iranian economy and seriously limited economic opportunities and prosperity for the Iranian people. The decline in the value of the rial also serves as tangible evidence that sanctions are having a serious effect on the regime. As the value of the rial continues to plummet to an unofficial rate of about 34,800 rials to the U.S. dollar, and inflation balloons to 23.5%, the Iranian regime has turned to issuing increasingly large denominations of banknotes.
The Central Bank of Iran, Bank Markazi (“CBI”), is ultimately responsible for the production and security of Iranian currency. Multinational corporations in Europe, including Thomas De La Rue plc, of the UK, historically produced Iranian banknotes. However, in 2002 the Iranian regime began production of its own currency at a facility known as “Takab,” which is currently overseen by the Banknote Printing and Minting Organization (“SPMO”) under the authority of the CBI.
In order to produce large numbers of high-security banknotes, the SPMO and CBI have apparently turned to foreign companies for technical expertise, printing machinery and raw materials. The CBI has released requests-for-tender (“RFTs”) soliciting the supply of printing presses, security fibers, hologram application machines and chemicals and additives crucial to the banknote production process. In addition, reports indicate that the CBI and Iran’s Bank Melli are actively searching for a new supplier of printing presses and associated replacement parts. Tehran’s methods of counteracting the devaluation of the rial include increasing its money supply and ensuring the reliability, security and efficacy of the printed banknotes. Without foreign banknote printing technology and materials, Iran could not successfully print large quantities and issue new denominations of secure rials, or ensure the ongoing and reliable supply of secure rials. The regime’s inability to provide a credible currency for Iran erodes its citizens’ confidence in the rial and leads to its devaluation.
UANI has identified corporations previously tied to Iranian banknote printing, currently doing business in Iran, or producing products specifically requested by the CBI. UANI is calling on these companies to disclose and cease any role they may have in producing the rial.
|Confirmed to not be involved in Iranian currency production
Koenig & Bauer AG (“KBA”)
• Sold multiple printing presses to Iran
UANI letter to KBA
De La Rue plc
• Last publically-known printer of Iranian banknotes. According to the 2013 Standard Catalogue of World Paper Money, the rial was printed on De La Rue machines as late as 2002
UANI letter to De La Rue
• Holds the trademark for an advanced banknote printing technology, nyloprint®, that has been specifically requested for use in Iranian currency production
UANI letter to Flint Group
Eye on Iran is a news summary from United Against Nuclear Iran (UANI), a section 501(c)(3) organization. Eye on Iran is available to subscribers on a daily basis or weekly basis.
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