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The era of barter

From Barter to the Dirham: The Journey of Currency in the UAE

Do you still say "rupee"? Where did that name come from? Let’s journey back to the origins of this currency!

The Era of Barter: Trade Before Money

Thousands of years ago, people relied on barter to buy and sell, exchanging gold for iron, or food for livestock. However, in the 6th century BCE, everything changed with the introduction of metal coins. This innovation made trade easier and fueled economic growth.

The First Paper Currency: A Revolutionary Chinese Invention

Despite the convenience of metal coins, they had a major drawback; their weight made them hard to carry. The solution came from China in the 7th century CE with the introduction of the first-ever paper money, roughly the size of an A4 sheet! This groundbreaking step reshaped the financial system forever.

The Currencies of the Gulf Before the Union

Currencies in the Arabian Gulf shifted over time, influenced by political and economic changes. Before the UAE was formed, the Austrian Taler, also known as the French Riyal, was widely used in the late 18th century. By the mid-19th century, the British East India Company signed an economic agreement with the British government and Gulf states, making the British Indian Rupee the region’s official currency.

Where Did the Word "Rupee" Come From?

Initially, the rupee was tied to the British monarchy, but its name actually comes from Sanskrit, meaning "a silver coin." Even after India gained independence in the 20th century, the Indian rupee remained in circulation in the UAE, embedding itself in the country’s cultural memory. It even found its way into local proverbs, like the saying "So-and-so is a full 16-anna rupee," a reference to someone’s completeness and worth, just like the rupee’s full value at the time.

From the Rupee to the Dirham: A Major Economic Shift

As trade and ties between India and the Gulf flourished, the Gulf rupee was introduced and used across the region. However, with the formation of the UAE, a significant change took place. The UAE Currency Board was established in 1973, and on May 19 of the same year, the UAE dirham became the official national currency. By 1980, the Central Bank of the UAE replaced the Currency Board, taking over financial regulation.

So… Do You Still Say "Rupee"?

Decades may have passed since the rupee disappeared from circulation, but it still lives on in collective memory, and for some, in everyday conversations. Do you still hear people using the word today?

The era of barter

The era of barter

The era of barter

From Barter to the Dirham: The Journey of Currency in the UAE

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