1 Escudo – Portuguese India

In 1958, the currency situation in Portuguese India (Goa, Daman, and Diu) was a complex reflection of its contested political status. The official currency was the Portuguese Indian rupia (INPR), which was pegged at par with the Indian rupee (INR) and issued by the Banco Nacional Ultramarino. However, this parity was largely theoretical and administrative. In practice, the vast majority of currency in circulation and used for daily commerce was the Indian rupee, introduced by the neighbouring Republic of India. This created a de facto dual-currency system, where the Portuguese rupia served primarily for government salaries and official transactions within the territory, while the Indian rupee dominated the broader economy.

This monetary duality was a direct consequence of geography and overwhelming economic reality. Landlocked within India and with its economy deeply integrated with the surrounding Indian states, Portuguese India was dependent on India for trade, food, and communication links. The Indian rupee was essential for this cross-border commerce. Furthermore, the Portuguese Indian rupia was not freely convertible outside the territory, making the widely accepted Indian rupee a more practical and stable store of value for the local population. The Portuguese administration tacitly accepted this reality, as attempting to enforce sole use of their currency would have crippled the local economy.

The year 1958 fell within a period of escalating tension, as India increased diplomatic and economic pressure to force Portugal's decolonisation. The currency situation became a point of friction. India viewed the circulation of Portuguese currency on what it considered its sovereign soil as a provocation, while Portugal insisted it was a symbol of its legitimate authority. This unstable monetary arrangement, underpinned by political conflict, would persist until the end of Portuguese rule. It was ultimately resolved in December 1961 following India's military annexation, when the Portuguese Indian rupia was immediately demonetised and replaced entirely by the Indian rupee.