1 Sapeque – French Cochinchina

In 1879, the currency situation in French Cochinchina was a complex and transitional one, characterized by the coexistence of multiple monetary systems. As a colony acquired piecemeal between 1858 and 1867, the region operated on a silver standard, with the Mexican piastre (a silver dollar) serving as the dominant trade coin and de facto standard. However, a plethora of other silver and subsidiary coins circulated, including French 5-franc pieces, Spanish and Peruvian pesos, and local Vietnamese currency like the zinc sapèque and silver ligatures. This created a chaotic environment where exchange rates fluctuated and hindered commercial efficiency.

The French colonial administration was actively attempting to impose order and integrate the colony into the Franc Zone. A key step was the establishment of the Banque de l'Indochine in 1875, which received the exclusive right to issue banknotes for the colony. By 1879, these notes, denominated in piastres and convertible into silver, were beginning to circulate alongside the physical silver coins. The French goal was to gradually shift the monetary anchor from pure silver bullion (the Mexican piastre) to a silver-based franc system, though the piastre would remain the official unit of account for decades.

Thus, 1879 represents a point of tension between the old Asian trading economy and the new colonial financial system. Merchants and the population still thought in terms of piastres and sapèques, conducting daily business with a mix of physical silver. Simultaneously, the institutional framework for a modern, bank-dominated currency was being laid, setting the stage for the eventual decree of 1885 that would formally define the Indochinese piastre. The situation was one of monetary duality, with the state promoting banknotes and franc-linked coinage while the market continued to trust in tangible silver.