Kabir – Yemeni Zaidi State

In 1902, the currency situation within the Zaidi Imamate of Yemen was characterized by fragmentation and instability, reflecting the region's political and economic isolation. The Imamate, ruled by Imam Yahya Muhammad Hamid ed-Din, was a largely autonomous but impoverished state within the Ottoman Empire, which nominally controlled the coastal regions. There was no unified, modern monetary system; instead, circulation was dominated by a mix of older, debased Ottoman coins, various foreign silver dollars (particularly the Maria Theresa thaler), and locally minted imadi riyals. These local coins were often crudely produced and of inconsistent silver content, leading to fluctuating values and widespread distrust.

This monetary chaos was a direct result of constrained economic activity and the Imam's limited fiscal resources. The rugged, inward-looking highlands had little export economy beyond coffee and hides, and state revenue relied heavily on traditional Islamic taxes. With no central bank or minting authority capable of issuing reliable currency, trade often depended on barter or the weighing of silver bullion. The persistent use of the Maria Theresa thaler, a centuries-old foreign coin, underscored the lack of confidence in local issues and the region's integration into wider Red Sea and Indian Ocean trade networks, albeit on terms dictated by external currencies.

Consequently, the currency disorder of 1902 presented a significant obstacle to Imam Yahya's efforts to consolidate his rule and modernize the state. It hampered internal trade, complicated tax collection, and symbolized the technological and administrative gap between the Zaidi highlands and the outside world. This unstable monetary environment would persist until after the First World War, when the collapse of the Ottoman Empire allowed the Imam to establish greater independence and begin tentative steps toward a more centralized financial system.