In 1825, Qandahar (modern Kandahar) was a strategic and economic hub caught in a complex web of competing currencies and political instability. The city had recently been a contested prize between the Durrani Empire, which was in a state of fragmentation following the death of Timur Shah Durrani in 1793, and the rising Sikh Empire of Ranjit Singh, which had extracted tribute from the region. Effective political control in and around the city was fluid, often held by local Barakzai chieftains, most notably the ambitious Dost Mohammad Khan, who was consolidating power in Kabul. This lack of a single, strong central authority meant there was no unified monetary system issuing reliable, standardized coinage for the region.
Consequently, the currency in circulation was a heterogeneous mix, reflecting Qandahar’s role on historic trade routes. The most prestigious coins were the silver rupees of the now-weakened Durrani dynasty, which retained some acceptance but varied in weight and purity. These circulated alongside older Persian
mohurs and
krans, Mughal-era rupees, and even coins from the British East India Company, entering via trade routes to the southeast. The most common and practical currency for daily transactions, however, was the humble copper
dam or
fulus. The value of these coins was not fixed by a central mint but was subject to local negotiation and the intrinsic worth of their metal, leading to a confusing and often unreliable market for commerce.
This monetary fragmentation directly mirrored the city’s precarious political state. Without a sovereign power to guarantee currency, trust in coinage was low, hindering larger-scale trade and taxation. Money changers (
sarrafs) held significant power, assessing and exchanging the myriad coins for a fee. The situation created an environment ripe for economic exploitation and uncertainty, which would only be resolved later in the century when Dost Mohammad Khan, as Emir of a reunified Afghanistan, centralized the minting of coins in Kabul, gradually imposing a more uniform monetary system across his domains, including Qandahar.