1 Falus – Emirate of Afghanistan

In the 1860s, the Emirate of Afghanistan under Dost Mohammad Khan (who died in 1863) and his successor Sher Ali Khan faced a complex and fragmented monetary landscape. There was no unified, state-controlled national currency. Instead, the economy operated on a system of multiple, competing coinages. The most prominent were the silver rupees of British India, which circulated widely due to extensive trade links, alongside older Persian and Bukharan coins from the west and north. Locally, various Afghan mints in cities like Kabul, Kandahar, and Herat produced their own coins, but their weight, purity, and value were inconsistent, leading to confusion and hindering commerce.

This monetary disarray was a direct reflection of the political instability of the era. Following the Second Anglo-Afghan War (1878-80), the struggle for the throne between Sher Ali Khan and his rivals diverted attention from economic reform. Regional rulers often controlled mints, using coinage as a symbol of sovereignty and a source of revenue through seigniorage, rather than as a tool for a unified national economy. The constant inflow of foreign coins and the irregular production of local ones created a system where money changers (sarafs) became essential intermediaries, further complicating transactions and eroding state authority over the economy.

Consequently, the 1860s represent a period of pre-modern monetary practice in Afghanistan. The absence of a standardized currency underscored the weak centralization of the state and the emirate's position as a crossroads for regional trade empires. It was not until the late 19th century, particularly under Amir Abdur Rahman Khan (r. 1880-1901), that serious efforts were made to centralize minting, standardize the rupee, and establish a single, authoritative currency for the emirate, laying the groundwork for a more modern financial system.