<p><a href="https://en.wikipedia.org/wiki/Operation_Bernhard" rel="noreferrer">https://en.wikipedia.org/wiki/Operation_Bernhard</a> (an exercise by Nazi Germany to forge British bank notes. The initial plan was to drop the notes over Britain to bring about a collapse of the British economy during the Second World War. )</p>

CC BY-SA 4.0
2020-07-22T12:41:38.267Z
Thank you very much for this answer, I wasn't aware of this operation and thanks to the link I was able to find additional information regarding "superdollars" and "Number Nine Research Laboratory". I validated the answer of Ole Krarup because the operation he describes has the bonus point to have succeeded its destabilization purpose.
Genorme
CC BY-SA 4.0
2020-07-23T19:25:30.897Z
Yes and and Bernhard was the basis the 1981 TV comedy https://en.wikipedia.org/wiki/Private_Schulz… both very funny and also quite likely fairly accurate as far as techniques and tactics went.

Quite separately, the Smithsonian Channels's serial documentary, Civl War, almost suggests the US forged Confederate currency… and certainly says large-scale forgers were caught because their fake CSA notes were of a much higher quality than the genuine articles!
Robbie Goodwin
CC BY-SA 4.0
2020-07-23T21:58:15.373Z
Can you extend your answer to contain more information?
ave
CC BY-SA 4.0
2020-07-24T00:21:55.560Z
"Hitler's Phony Fivers"... this was my first thought as well.
Andy
CC BY-SA 4.0
2020-07-21T11:00:44.660Z
2020-07-21T11:00:44.660Z
KarmaPeasant
<p>David Petruccelli writes in &quot;<a href="https://www.jstor.org/stable/44503996?seq=1" rel="noreferrer">Banknotes from the Underground: Counterfeiting and the International Order in Interwar Europe</a>&quot;</p>
<blockquote>
<p>In December 1925, a group of Hungarian nationalists were caught trying to put into circulation a large quantity of counterfeit francs in a bid to weaken the French economy and fund irredentist action in Central Europe.</p>
</blockquote>
<p><strong>Edit</strong>:
<br>
Though not officially sanctioned by the government of Hungary, some high ranking officials were involved. Quoting from Andor Klay's &quot;<a href="https://www.cambridge.org/core/services/aop-cambridge-core/content/view/5C5C67EFBA3E3678A629FB34FDD2D9EC/S0037677900147096a.pdf/div-class-title-hungarian-counterfeit-francs-a-case-of-post-world-war-i-political-sabotage-div.pdf" rel="noreferrer">Hungarian Counterfeit Francs: A Case of Post-World War I Political Sabotage</a>&quot;:</p>
<blockquote>
<p>...the nation's
highest-ranking police official, Nadosy, admitted to the ministers of justice
and interior that he had personally issued special documentation for the
arrested &quot;couriers.&quot; Next it became known that a former minister of supplies,
Prince Lajos Windischgraetz, was also implicated.</p>
</blockquote>

CC BY-SA 4.0
2020-07-21T12:13:32.747Z
I don't see how it's relevant. If non-state actors were printing fake money, then it was economic terrorism, not economic warfare.
KarmaPeasant
CC BY-SA 4.0
2020-07-21T16:58:19.723Z
"some high ranking officials were involved" And? How does it make warfare between **States**? Or do you mean that the rest of the government knew about actions of said high-ranking officials and wasn't interfering because it was OK with said actions?
KarmaPeasant
CC BY-SA 4.0
2020-07-21T17:20:13.783Z
If you read Andor Klay's linked article you'll see that this is ambiguous.
Giskard
CC BY-SA 4.0
2020-07-21T17:27:29.557Z
I like the example even if it was not condoned by the commander in chief of the belligerent state. There is also a [similar answer](https://history.stackexchange.com/a/10529/17672) to the [similar question](https://history.stackexchange.com/questions/7459/has-a-state-ever-attacked-another-one-by-printing-fake-money) on History. Also, if you find my example a poor one, I don't mind.
Giskard
CC BY-SA 4.0
2020-07-24T12:36:12.817Z
@user161005 - The consensus among historians is that both the current and the previous prime ministers were aware, although not personally involved. While still not technically officially endorsed by the state, practically, you can't come much closer than that...
Gábor
CC BY-SA 4.0
2020-07-21T10:58:34.917Z
2020-07-21T15:25:32.177Z
2020-07-21T15:25:32.177Z
Giskard
<p>Slightly different but perhaps relevant. A friend of mine spent some time during the late 1960s transporting counterfeit American Express Travelers Checks into Laos, that the CIA was using to fund its operations. He traveled on US military transport aircraft from Saigon to the capital of Laos (whose name I forget). The amount was significant, suitcases full. Apparently this was done with the tacit acceptance of American Express. He never told me who he passed them to in Laos but I presume some warlord paid for them with discounted cash, and I suppose that they stayed in Laos being used as a medium of exchange, and were rarely if ever presented to AmEx for redemption.</p>

CC BY-SA 4.0
2020-07-22T09:43:13.237Z
This just appears to be a method to covertly get funds to a field operation, not an attempt to destabilize the economy by injecting extra fake currency into it.
Philipp
CC BY-SA 4.0
2020-07-23T01:41:38.093Z
If AmEx consents to it, is it truly counterfeiting?
Acccumulation
CC BY-SA 4.0
2020-07-22T04:55:55.663Z
2020-07-22T04:55:55.663Z
gar37bic
<p><strong>Very obscure historical example:</strong></p>
<p>From 1287 to 1295, the Danish nobleman <a href="https://en.wikipedia.org/wiki/Stig_Andersen_Hvide" rel="noreferrer">Stig Andersen Hvide</a> was leading a band of outlaws from the island of <a href="https://en.wikipedia.org/wiki/Hjelm_(island)" rel="noreferrer">Hjelm</a> supported by the king of Norway against the king of Denmark. Stig managed to kidnap expert coin makers and bring them to Hjelm, where they produced counterfeit Danish coins.</p>
<p>This allowed Stig and his supporters to buy up all the supplies they wanted in Danish merchant cities. The heavy inflation and the problems it caused for the Danish economy made it difficult for the Danish king to afford assembling an army against Stig.</p>

CC BY-SA 4.0
2020-07-21T19:26:55.107Z
2020-07-21T19:26:55.107Z
Ole Krarup
<p>I recently read in a <a href="https://www.reuters.com/article/us-russia-libya-usa-banknotes/russia-denies-u-s-claim-that-libyan-banknotes-seized-in-malta-are-counterfeit-idUSKBN2360NA" rel="noreferrer">news article</a> that a large amount of Libyan banknotes printed in Russia were seized in Malta following an order coming from the USA. Both Russia and the USA have geostrategic interests in this part of the world so I assume this action is probably linked to an economic warfare operation. Banknotes normally include a large amount of <a href="https://en.wikipedia.org/wiki/Security_printing" rel="noreferrer">security features</a> that prevent people to easily counterfeit them but I assume that for large countries like China, Russia or the USA it is not a big deal to print banknotes of a foreign country. In time of <a href="https://en.wikipedia.org/wiki/Economic_warfare" rel="noreferrer">war</a> it can be quite interesting for a large country to print a lot of banknotes and spread them in the economy of an adversary country to destabilize its economy. But putting apart the above mentioned news article I wasn't able to find evidences of such a scenario so my question is :</p>
<p><strong>Are there historical cases of country A printing the currency of country B for the main purpose of economic warfare ?</strong></p>

CC BY-SA 4.0
2020-07-21T10:30:32.123Z
https://en.wikipedia.org/wiki/Operation_Bernhard (an exercise by Nazi Germany to forge British bank notes. The initial plan was to drop the notes over Britain to bring about a collapse of the British economy during the Second World War. )
KarmaPeasant
CC BY-SA 4.0
2020-07-21T10:59:22.267Z
@user161005 Please post answers as answers.
Giskard
CC BY-SA 4.0
2020-07-21T11:09:01.820Z
1) i’ve heard media reports to this effect, but they were never verified. 2) Counterfeiting is likely only useful to support intelligence operations in countries that are functional. Otherwise, the flow of notes is in institutional hands, and new inflows would stand out. In countries where the banking system is non-functional, counterfeiting might be easier.
Brian Romanchuk
CC BY-SA 4.0
2020-07-22T02:48:55.573Z
You might be interested: https://economics.stackexchange.com/questions/19774/why-cant-countries-print-another-countrys-currency
Allure
CC BY-SA 4.0
2020-07-22T13:37:56.867Z
Plenty of. For example Napoleon attempted to do so during his campaign in Russia: https://museum.goznak.ru/en/content/news/227/ . There is also a rather comprehensive list here: http://currency_den.tripod.com/War_Counterfeits/war.html
Dan M.
CC BY-SA 4.0
2020-07-22T17:25:51.290Z
I think North Korea has printed counterfiet U.S. $100 bills, not simply for economic warfare, but because they could use the money.
Michael Hardy
CC BY-SA 4.0
2020-07-23T15:02:22.080Z
@user161005 Of course we know now this would have been a massive economic stimulus for GB if the banknotes had been good enough to go undetected.
Spehro 'speff' Pefhany
CC BY-SA 4.0
2020-07-24T07:33:15.630Z
@DanM. Please post answers as answers, not as comments. We don’t have the appropriate quality control measures for comments.
Tim
<macroeconomics><inflation><finance><economic-history>
Are there historical cases of country A printing the currency of country B for the main purpose of economic warfare?
Genorme
# Are there historical cases of country A printing the currency of country B for the main purpose of economic warfare?

(Asked by: username_0 on 2020-07-21)

I recently read in a [news article](https://www.reuters.com/article/us-russia-libya-usa-banknotes/russia-denies-u-s-claim-that-libyan-banknotes-seized-in-malta-are-counterfeit-idUSKBN2360NA) that a large amount of Libyan banknotes printed in Russia were seized in Malta following an order coming from the USA. Both Russia and the USA have geostrategic interests in this part of the world so I assume this action is probably linked to an economic warfare operation. Banknotes normally include a large amount of [security features](https://en.wikipedia.org/wiki/Security_printing) that prevent people to easily counterfeit them but I assume that for large countries like China, Russia or the USA it is not a big deal to print banknotes of a foreign country. In time of [war](https://en.wikipedia.org/wiki/Economic_warfare) it can be quite interesting for a large country to print a lot of banknotes and spread them in the economy of an adversary country to destabilize its economy. But putting apart the above mentioned news article I wasn't able to find evidences of such a scenario so my question is :

**Are there historical cases of country A printing the currency of country B for the main purpose of economic warfare ?**

**Tags:** macroeconomics, inflation, finance, economic-history

> **Comments:**
> **username_1**: https://en.wikipedia.org/wiki/Operation_Bernhard (an exercise by Nazi Germany to forge British bank notes. The initial plan was to drop the notes over Britain to bring about a collapse of the British economy during the Second World War. )  
> **username_2**: @user161005 Please post answers as answers.  
> **username_3**: 1) i’ve heard media reports to this effect, but they were never verified. 2) Counterfeiting is likely only useful to support intelligence operations in countries that are functional. Otherwise, the flow of notes is in institutional hands, and new inflows would stand out. In countries where the banking system is non-functional, counterfeiting might be easier.  
> **username_4**: You might be interested: https://economics.stackexchange.com/questions/19774/why-cant-countries-print-another-countrys-currency  
> **username_5**: Plenty of. For example Napoleon attempted to do so during his campaign in Russia: https://museum.goznak.ru/en/content/news/227/ . There is also a rather comprehensive list here: http://currency_den.tripod.com/War_Counterfeits/war.html  
> **username_6**: I think North Korea has printed counterfiet U.S. $100 bills, not simply for economic warfare, but because they could use the money.  
> **username_7**: @user161005 Of course we know now this would have been a massive economic stimulus for GB if the banknotes had been good enough to go undetected.  
> **username_8**: @DanM. Please post answers as answers, not as comments. We don’t have the appropriate quality control measures for comments.  

---

## 4 answers

### Answer by username_16 on 2020-07-21. Score: 39 | Accepted answer

**Very obscure historical example:**

From 1287 to 1295, the Danish nobleman [Stig Andersen Hvide](https://en.wikipedia.org/wiki/Stig_Andersen_Hvide) was leading a band of outlaws from the island of [Hjelm](https://en.wikipedia.org/wiki/Hjelm_(island)) supported by the king of Norway against the king of Denmark. Stig managed to kidnap expert coin makers and bring them to Hjelm, where they produced counterfeit Danish coins.

This allowed Stig and his supporters to buy up all the supplies they wanted in Danish merchant cities. The heavy inflation and the problems it caused for the Danish economy made it difficult for the Danish king to afford assembling an army against Stig.


---

### Answer by username_1 on 2020-07-21. Score: 28

<https://en.wikipedia.org/wiki/Operation_Bernhard> (an exercise by Nazi Germany to forge British bank notes. The initial plan was to drop the notes over Britain to bring about a collapse of the British economy during the Second World War. )

> **Comments:**
> **username_0**: Thank you very much for this answer, I wasn't aware of this operation and thanks to the link I was able to find additional information regarding "superdollars" and "Number Nine Research Laboratory". I validated the answer of username_16 because the operation he describes has the bonus point to have succeeded its destabilization purpose.  
> **username_9**: Yes and and Bernhard was the basis the 1981 TV comedy https://en.wikipedia.org/wiki/Private_Schulz… both very funny and also quite likely fairly accurate as far as techniques and tactics went.  Quite separately, the Smithsonian Channels's serial documentary, Civl War, almost suggests the US forged Confederate currency… and certainly says large-scale forgers were caught because their fake CSA notes were of a much higher quality than the genuine articles!  
> **username_10**: Can you extend your answer to contain more information?  
> **username_11**: "Hitler's Phony Fivers"... this was my first thought as well.  

---

### Answer by username_2 on 2020-07-21. Score: 13

David Petruccelli writes in "[Banknotes from the Underground: Counterfeiting and the International Order in Interwar Europe](https://www.jstor.org/stable/44503996?seq=1)"

> In December 1925, a group of Hungarian nationalists were caught trying to put into circulation a large quantity of counterfeit francs in a bid to weaken the French economy and fund irredentist action in Central Europe.

**Edit**:
  
Though not officially sanctioned by the government of Hungary, some high ranking officials were involved. Quoting from Andor Klay's "[Hungarian Counterfeit Francs: A Case of Post-World War I Political Sabotage](https://www.cambridge.org/core/services/aop-cambridge-core/content/view/5C5C67EFBA3E3678A629FB34FDD2D9EC/S0037677900147096a.pdf/div-class-title-hungarian-counterfeit-francs-a-case-of-post-world-war-i-political-sabotage-div.pdf)":

> ...the nation's
> highest-ranking police official, Nadosy, admitted to the ministers of justice
> and interior that he had personally issued special documentation for the
> arrested "couriers." Next it became known that a former minister of supplies,
> Prince Lajos Windischgraetz, was also implicated.

> **Comments:**
> **username_1**: I don't see how it's relevant. If non-state actors were printing fake money, then it was economic terrorism, not economic warfare.  
> **username_1**: "some high ranking officials were involved" And? How does it make warfare between **States**? Or do you mean that the rest of the government knew about actions of said high-ranking officials and wasn't interfering because it was OK with said actions?  
> **username_2**: If you read Andor Klay's linked article you'll see that this is ambiguous.  
> **username_2**: I like the example even if it was not condoned by the commander in chief of the belligerent state. There is also a [similar answer](https://history.stackexchange.com/a/10529/17672) to the [similar question](https://history.stackexchange.com/questions/7459/has-a-state-ever-attacked-another-one-by-printing-fake-money) on History. Also, if you find my example a poor one, I don't mind.  
> **username_12**: @user161005 - The consensus among historians is that both the current and the previous prime ministers were aware, although not personally involved. While still not technically officially endorsed by the state, practically, you can't come much closer than that...  

---

### Answer by username_13 on 2020-07-22. Score: -1

Slightly different but perhaps relevant. A friend of mine spent some time during the late 1960s transporting counterfeit American Express Travelers Checks into Laos, that the CIA was using to fund its operations. He traveled on US military transport aircraft from Saigon to the capital of Laos (whose name I forget). The amount was significant, suitcases full. Apparently this was done with the tacit acceptance of American Express. He never told me who he passed them to in Laos but I presume some warlord paid for them with discounted cash, and I suppose that they stayed in Laos being used as a medium of exchange, and were rarely if ever presented to AmEx for redemption.

> **Comments:**
> **username_14**: This just appears to be a method to covertly get funds to a field operation, not an attempt to destabilize the economy by injecting extra fake currency into it.  
> **username_15**: If AmEx consents to it, is it truly counterfeiting?  

---

