4 Tangas – Portuguese India

In 1934, the currency situation in Portuguese India (Goa, Daman, and Diu) was characterized by a complex and practical dual-system, operating under the overarching monetary authority of Portugal. The official currency was the Portuguese Indian Rupia (INR), which was pegged at a fixed parity to the Portuguese Escudo (1 Rupia = 1 Escudo). However, this official currency circulated alongside and was heavily influenced by the ubiquitous British Indian Rupee, which dominated regional trade due to the territory's extensive economic and social links with British India. The Portuguese Indian Rupia itself was not a distinct banknote but rather a unit of account, with actual notes being Portuguese Escudo bills stamped with their value in Rupias.

This monetary duality created a unique environment where the official exchange rate with the Escudo was often disconnected from the market reality. The value of the stamped Portuguese notes in daily commerce was effectively determined by their fluctuating conversion rate against the stronger British Indian Rupee on the bustling black market in Panjim. Consequently, while the state administered its finances in the official Rupia/Escudo, the vast majority of local commerce, wages, and prices were mentally calculated and often transacted in terms of British Indian currency, leading to confusion and arbitrage opportunities.

The situation in 1934 was one of administrative strain and economic contradiction. Lisbon's attempts to enforce a Lisbon-centric currency peg were undermined by Goa's geographical and economic reality. This period highlighted the territory's liminal position—politically tied to a European empire but economically integrated into the Indian subcontinent. The system persisted until 1959, when a major monetary reform finally introduced a distinct Portuguese Indian banknote, though the region's economic orientation remained firmly towards India until its liberation in 1961.