Maldivian rufiyaa: Encyclopedia II - Maldivian rufiyaa - History

Maldivian rufiyaa - History

The earliest form of currency used in the Maldives was cowry shells (Cypraea moneta) and historical accounts of travelers indicate that they were traded in this manner even during the 13th Century. Ibn Batuta (1344 A.D.) observed that more than 40 ships loaded with cowry shells were exported each year. A single gold Dinar was worth 400,000 shells.

A few centuries later, during the 1600s and 1700s silver wires (folded in the middle to make two parallel straps) with engraved Persian and Arabic inscriptions were imported and traded as currency. This form of currency was used in the Persian Gulf, India, Ceylon and the Far East during the time. Historians agree that this new form of currency was most probably exchanged for cowry shells and indicates Maldives’ lucrative trade with these countries. The first Sultan to imprint his own seal onto this currency was Ghaazee Mohamed Thakurufaanu Al Auzam. The seal was much broader than the wires hence it was barely legible.

The first known batch of coin currency was introduced by Sultan Ibrahim Iskandar (1648-1687 AD). Compared to the previous forms of money used, his coins were much neater and made out of pure silver thus possessing a higher standard of quality. Surprisingly, this new money was forged in the capital city of Malé, a fact which it acknowledged on its reverse face. An engravement (Dhivehi: ކަނޑާއި އެއްގަމުގެ ރަސްގެފާނު، މަތިވެރި އިސްކަންދަރު , King of Land and Sea, Iskandhar the Great) is found milled on the edge.

After this period, gold coins replaced the existing silver ones during the reign of Sultan Hassan Nooruddin in 1787 AD. He used two different qualities of gold in his coins; one was called Mohoree and the other Baimohoree, of which the former is of higher value. How this gold was obtained is uncertain.

Through the nineteenth and early twentieth centuries, bronze coins were issued denominated in laari. Sultan Mohamed Imaadhudheen IV (1900-1904) introduced what historians believe to be the first machine struck coins, judging the superior quality of the engravements. His successor Sultan Mohamed Shamshudeen III (1904-1935) made the last of these coins, 1 and 4 laari denominations, which were struck in the United Kingdom by Heaton's Mint, Birmingham, England in 1913.

Following the end of coin production specifically for the Maldives, the Sultanate came to use the Ceylonese rupee. This was supplemented in 1947 by issues of banknotes denominated in rufiyaa, equal in value to the rupee. In 1960, coins denominated in laari, now worth one hundredth of the rufiyaa, were introduced. Sultan Mohamed Fareed I ordered these coins from the Royal Mint in England. Unlike his predecessors, Sultan Fareed did not embellish his title on the coins; instead he used the National Emblem on the reverse side with the traditional title of the state (Arabic: ا دولت امحلد يبيت, Republic of Maldives) and the denomination value on the obverse side. The new batch consisted of denominations of 1, 2, 5, 10, 25 and 50 laari. The currency was put into circulation in February 1961 and all the previously traded coins, with the exception of Shamshudeen III's 1 and 4 laari, were withdrawn from circulation on June 17, 1966.

The newly established central bank of the country, Maldives Monetary Authority (MMA), introduced the Rf 1 on January 22, 1983. The coin was made from steel clad copper nickel and was made in West Germany.

Adapted from the Wikipedia article "History", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki