Thursday, August 07, 2014

Dinars and Dirhams

Long ago, even before the advent of Islam, earlier civilizations used the gold and silver coins by weight as money. These bimetallic coins facilitated trades and exchange of commodities among communities, regions, tribes and even continents as gold and silver were universally accepted medium of exchange. The advent of Islam also supports the usage of these coins as money. The standardized Islamic version is called Dinar and Dirham. The initial Dinar coins used by the Muslims were minted by the Byzantine Romans (which were called the Solidus) and initial Dirham coins were minted by the Sasanians (which were called Drachm).

 
Solidus (Heraclius 610 AD)

Drachm (Khusro II 610 AD)

Even after establishing the first Islamic state in CE 622, the Muslims did not institute a coinage of their own. This remained true for Arabia through the end of the Orthodox Caliphate and the early part of the Umayyad rule.

During the early years of their reign, the Umayyads continued to use silver Sasanian coins in Iran and Iraq, and gold and copper Byzantine coins in Syria and Egypt.

At first these Dirhams didn't differ much from the Sasanian coins they copied, but by the third decade of Islam, marginal writings started appearing on these Dirhams [Bism Allah] leading eventually to the replacement of the pahlavi script and the Yesdigrid era dating with Arabic script and Hijri Dating.

These Dirhams were replaced by purely epigraphic Dirhams in the reform of 'Abd al-Malik Bin Marwan. Following is the translation of Ibn al-Athir's account of the coinage reform and its reasons.

Islamic Dirham

As part of his policy to unify the various regions under Islamic rule, Abd al-Malik ibn Marwan (685-705CE) introduced the first Umayyad gold coins at a time of discord between the Umayyads and Byzantines over the merits of Islam and Christianity. The early coins were struck either in 691 or 692; the Byzantine emperor was angry and refused to accept the new Arab gold currency, renewing the war between the Arabs and the Byzantines.

The new Islamic currency that was first coin to carry an Arabic inscription was called a dinar and was similar, in both size and weight, to the Byzantine solidus. On the obverse, there were three standing figures of unknown identities, as on the Byzantine coin, which had on its obverse the figures of Heracles, Heraclias Constantine, and Heraclonas; on the reverse, the Byzantine cross was replaced by a column placed on three steps topped with a sphere. In the margin surrounding the design the testimony of Islam was written in Arabic: "In the name of Allah, there is no deity but Allah; He is One; Muhammad is the messenger of Allah."

Byzantine Solidus


Islamic Dinar

The new Arab-Byzantine coin stressed the unity of God to counter the Christian Trinitarian doctrine, and made no mention of the caliph.

The Byzantine emperor Justinian II responded to this challenge by striking a new solidus with the head of Christ on the obverse and on the reverse an image of himself robed and holding a cross.


Caliph Abd al-Malik's response was to issue a new dinar in 693.


On its obverse was the upright figure of the caliph, wearing an Arab headdress and holding a sword, with the testimony of Islam inscribed in the margin. The reverse bore the same column on three steps and the sphere, but a new legend appeared around the margin: "In the name of God this dinar was struck in the year four and seventy" Only eight of these early Arab-Byzantine dinars, dated according to the new Islamic calendar, have survived. Once more, the Byzantine emperor Leontius responded by striking a new coin similar to that of the Arabs, which greatly displeased Abd al-Malik. 


In 697 the caliph decided to abandon all traces of iconography and introduced the first Islamic coin devoid of figurative representation. 

Gold Dinar

On both sides of the new dinar were inscribed verses from the Qur'an, expressing the message of Islam and making each piece an individual missionary of the faith. After he introduced this coin, Abd al-Malik issued a decree making it the only currency to be used throughout Umayyad lands. All remaining Byzantine and Arab-Byzantine pieces were to be handed to the treasury, to be melted down and re-struck. Those who did not comply faced the death penalty. The new gold dinars weighed a bit less than the solidus and the state controlled the accuracy of its weight along with the purity of the gold. 

Silver Dirham

The Gold Dinars and Silver Dirhams with Qur’anic verses remain legal tenders during various caliphates and kingdoms till 1920CE (Alim Khan of Bukhara).

Recently many attempts have been made to revive this Islamic currency of Dinars and Dirhams. The countries minting these coins are as follows;

Indonesia
The currency was introduced in Indonesia in the year 2000 by Islamic Mint Nusantara (IMN). In 2011 IMN reveal the mithqal correction both weight and purity and follow by minting the Dinar 4.44 gram or 1/7 troy ounce (9999) and Dirham 3.11 gram or 1/10 troy ounce (9999).

Malaysia
Kelantan was the first state in the country to introduce the dinar in 2006, which was locally minted. In 2010, it issued new coins, including the dirham, minted in United Arab Emirates by World Islamic Mint.

The state of Perak followed suit, minting its own dinar and dirham, which was launched in 2011.

Other countries are also minting Gold Dinars and Silver Dirhams including UAE, USA, Australia etc but are not used as legal tenders in the country.

Monday, June 09, 2014

Cowrie? Damri? Pie? Dhela? Anna?

Do you ever wondered about the currency units found in old Urdu proverbs? Like;

“Chamri jae Damri na jae” - چمڑی جاۓ دمڑی نہ جاۓ

“Cowrion ke mol bikna” - کوڑیوں کے مول بکنا

“Is ke paas to aik Phooti Cowri bhi nahi hai”  - اس کے پاس تو ایک پھوٹی کوڑی بھی نہیں ہے

“yeh to ek Dhelay ka kaam bhi nahi hai” -  یہ تو ایک دھیلے کا کام بھی نہیں ہے


 
Today I will take you to the journey where these currency units were used in daily routine. 

The continent of India was one of the first issuers of coins (circa: 6th Century BC), and as a result it has seen a wide range of monetary units throughout its history. There is some historical evidence to show that the first coins may have been introduced somewhere between 2500 and 1750 BC. However, the first documented coins date from between the 7th/6th century BC to the 1st century AD. These coins are called 'punch-marked' coins because of their manufacturing technique.

Over the next few centuries, as traditions developed and empires rose and fell, the country's coinage designs reflected its progression and often depicted dynasties, socio-political events, deities, and nature. This included dynastic coins, representing Greek Gods of the Indo-Greek period followed by the Western Kshatrapa copper coins from between the 1st and the 4th Century AD.

In 712 AD, the Arabs conquered the Indian province of Sindh and brought their influence and coverage with them. By the 12th Century, Turkish Sultans of Delhi replaced the longstanding Arab designs and replaced them with Islamic calligraphy. This currency was referred to as 'Tanka' and the lower valued coins, 'Jittals'. The Delhi Sultanate attempted to standardize this monetary system and coins were subsequently made in gold, silver and copper.

In 1526, the Mughal period commenced, bringing forth a unified and consolidated monetary system for the entire Empire. This was heavily influenced by the Afghan Sher Shah Suri (1540 to 1545) who introduced the Gold Mohur, Silver Rupayya or Rupee and Copper Dam coins. The princely states of pre-colonial India minted their own coins, all which mainly resembled the Gold Mohur, Silver Rupee and Copper Dam, but held regional distinctions depending on where they were from. During the late 18th Century when political unrest occurred, agency houses developed banks such as the Bank of Bengal and Bihar, The Bank of Hindustan, Orient Bank Corporation and The Bank of Western India. These banks also printed their own paper currency in the Urdu, Bengali and Nagri languages.

It was only in 1858 when the British Crown gained control of the one hundred Princely states, and subsequently ended the Mughal Empire, that the coin's native images were replaced by portraits of the Monarch of Great Britain to indicate British Supremacy. In 1866, when the financial establishments collapsed, the control of paper money also shifted to the British Government. This was subsequently passed to the Mint Masters, the Accountant Generals and the Controller of Currency. In 1867, the Victoria Portrait series of bank notes was issued in honor of Queen Victoria.

As Rupee was the standard unit for currency, many smaller denomination currency units were also used since the era of Mughal Empire till the British rule. Following is the chart of the distribution of these currency units.


 
Further to the chart 1 Damri roughly equals to 10 Cowries and 1 Cowrie is equal to 3 Phooti (damaged) Cowries. 

Phooti Cowrie

Cowrie

Damri - 1782

Pie - 1831

Dhela - 1782

Paisa - 1782

Thursday, June 05, 2014

Don’t forget to exchange decimal coins

State Bank of Pakistan (SBP) has reminded the general public to exchange the decimal coins of 1,2,5,10,25 & 50 paisas from the field offices of SBP BSC and commercial and microfinance banks branches by last working day of September 30.


For awareness of general public, SBP has advised the Commercial /Microfinance Banks to display posters/banners at visible places of their branches for exchange of decimal coins.


It may be recalled that the federal government has already notified that coins of Paisa 1,2,5,10,25 & 50 will cease to be legal tender on October 1, 2014. However, it can be exchanged from the field offices of SBP BSC and branches of banks till September 30, 2014.

Monday, June 02, 2014

Commemorative Coin - Golden Jubilee of Navy Submarine Force (25 Rs)


To celebrate the Golden Jubilee of Navy Submarine Force, the Government of Pakistan has decided to issue a Rs 25 Commemorative Coin with effect from June 02. Coin has been launched from June 02 (Monday) on the occasion of 50th Anniversary of establishment of Pakistan Navy Submarine Force.


50 Years of Pakistan Navy Submarine Force
25 Rupees (June 02, 2014)
Dimension - 30.00 mm, Weight - 12 gms
Material - Cupro Nickel (Copper 75% & Nickel 25%)
Mintage - 50,000