1 Rupee – Afghanistan

In 1818, Afghanistan's currency situation reflected a fragmented and volatile political landscape following the collapse of the Durrani Empire. The empire, founded by Ahmad Shah Durrani, had established a relatively unified monetary system, minting silver rupees and gold mohurs in major cities like Kabul, Kandahar, and Herat. However, with the assassination of Shah Mahmud Durrani in 1818 and the ensuing civil war among his sons, the empire splintered into rival principalities. This political disintegration directly led to a breakdown in centralized monetary authority, with each emergent ruler—such as Dost Mohammad Khan in Kabul and his brothers elsewhere—asserting the right to mint their own coinage.

Consequently, the currency in circulation became a heterogeneous mix of older Durrani coins, new issues from various competing mints, and foreign currencies like the Persian toman and Indian rupees from regional trade. The weight, purity, and value of these coins varied significantly between regions, creating complexity for merchants and undermining inter-regional trade. Debasement was a common practice for local rulers seeking to finance their military campaigns, leading to inflation and a loss of public trust in the coinage. The economic instability mirrored the political chaos, with no single standard or guarantee of value across the territories that constitute modern Afghanistan.

This decentralized and unreliable monetary environment persisted throughout the early 19th century, only beginning to stabilize decades later as Dost Mohammad Khan gradually consolidated power during the Barakzai dynasty. The currency situation of 1818, therefore, stands as a numismatic illustration of a failed state, where the loss of a central authority resulted in economic fragmentation, inhibiting recovery and development during a critical period.