1 Pul – Khoqand Khanate

In 1844, the Khoqand Khanate's currency system was in a state of profound crisis and debasement, reflecting the broader political and economic instability of the realm. For decades, the state had financed its military expansion and lavish court expenditures not through efficient taxation but through the relentless degradation of its silver coinage, the tanga. By the 1840s, the silver content of the tanga had been reduced to less than 25% of its original standard, leading to a severe loss of public confidence. This was exacerbated by the simultaneous circulation of older, purer Bukharan and Russian coins, which were hoarded, creating a chaotic multi-tiered currency market where the official and market values of coins wildly diverged.

The economic consequences were dire. Rampant inflation eroded living standards, crippled long-distance trade—the lifeblood of the Fergana Valley—and caused widespread social discontent. Merchants and markets increasingly resorted to barter or demanded payment in heavier foreign silver, undermining the Khanate's monetary sovereignty. The debasement acted as a hidden tax, disproportionately harming soldiers on fixed pay and the urban poor, while enriching those close to the minting process. This financial decay mirrored the weakening authority of Khan Muhammad Ali (Madali), whose reign was marked by internal rebellion, diplomatic isolation, and growing pressure from the Russian Empire.

Ultimately, the currency crisis of 1844 was both a symptom and a catalyst of the Khanate's decline. It demonstrated the state's inability to manage its fiscal affairs and eroded the legitimacy of the government at a critical juncture. Within a decade, this internal fragility, compounded by external threats, would culminate in a devastating civil war, paving the way for the Russian conquest of the Fergana Valley and the annexation of Khoqand's territories by 1876.