Dirhem – Baghdad Eyalet

In 1595, the currency situation in Baghdad Eyalet was complex and strained, reflecting the broader fiscal and administrative challenges of the Ottoman Empire during the "Crisis of the 17th Century." The province operated within the empire's centralized monetary system, where the primary silver coin was the akçe and the gold coin was the sultani. However, the empire was grappling with severe currency debasement and a flood of cheap silver from the New World, which disrupted the traditional bimetallic system and caused price inflation (known as the "Price Revolution"). This devaluation eroded the real value of fixed salaries, particularly for the sipahi cavalry and the Janissary garrison in Baghdad, leading to frequent unrest and demands for payment in sound coin.

Locally, the economy of Baghdad Eyalet relied heavily on trade along the Tigris and Euphrates and its connection to Persian and Indian commerce. This brought a variety of foreign coins into circulation, including Persian shahis and abbasis, and even Spanish pieces of eight. The coexistence of these currencies alongside official Ottoman coinage created a dynamic but chaotic marketplace, where exchange rates fluctuated and money changers (sarrafs) held significant power. The provincial government faced constant difficulty in ensuring that taxes, collected in a mix of currencies, were remitted to Istanbul in reliable, high-quality specie.

Furthermore, the geopolitical reality of Baghdad—a contested frontier region recently reconquered from the Safavids in 1534 and perpetually under threat—placed an extraordinary military and financial burden on the eyalet. Treasury funds were often diverted directly to fortify the city and maintain the army, leaving little reserve for monetary stability. Consequently, by 1595, merchants, soldiers, and officials in Baghdad navigated a monetary environment characterized by unreliable coinage, inflationary pressures, and the practical use of multiple currency systems, all of which hampered long-term economic planning and sowed social discontent.