1 Larin – Maldives

In 1691, the Maldives operated within a complex and multi-layered currency system, heavily influenced by its strategic position in Indian Ocean trade networks. The official and most prestigious currency was the larin, a silver wire coin bent into a hook shape, which originated in Persia. The state treasury and significant long-distance trade, particularly with merchants from India and the Middle East, were conducted in this currency. Its value was tied to its intrinsic silver content, making it a widely accepted regional medium of exchange.

Alongside the larin, a vibrant system of cowrie shells served as the everyday currency for the vast majority of the Maldivian population. The islands were a primary global source of these shells (Cypraea moneta), harvested from the reefs. They were used for local market transactions, tax payments to local chiefs, and small-scale trade. The state carefully controlled the cowrie harvest, recognizing its economic importance, and exported vast quantities to places like Bengal and West Africa, where they were also used as currency.

This dual-system existed within a broader context of economic strain. The Maldives was a tributary sultanate under the protection of the Dutch East India Company (VOC), which controlled Ceylon (Sri Lanka). While offering security, this relationship likely involved trade impositions and limited Maldivian monetary sovereignty. Furthermore, the economy was still recovering from the devastating devastation of Male by Portuguese forces in the late 16th century and a period of political instability. Therefore, the currency situation in 1691 reflected a fragile economy balancing local tradition (cowries), regional trade standards (larins), and the pressures of European colonial power dynamics.