1 Paisa – Emirate of Afghanistan

In 1919, the Emirate of Afghanistan's currency system was a complex and fragmented landscape, reflecting the country's tribal and regional divisions rather than a unified national economy. The primary circulating medium was the Afghan rupee, a silver coin first introduced by Amir Abdur Rahman Khan in the 1890s. However, its reach and authority were limited. Alongside it, a plethora of older, locally minted coins from previous reigns remained in circulation, and foreign currencies—particularly the British Indian rupee—dominated trade, especially in cities and along border regions. This reliance on foreign coinage underscored Afghanistan's economic entanglement with British India and the weakness of its own monetary sovereignty.

The monetary chaos was exacerbated by the state's limited minting capacity and the widespread practice of clipping and debasement of coins, which eroded public trust. Furthermore, the Hamid Khan rupees, named after the treasury chief, were heavily debased with copper, creating a two-tier system where "white" (silver) rupees were hoarded and "red" (copper-alloy) rupees were used for daily transactions at a discounted rate. This instability presented a significant obstacle to state-building and centralized finance for the new ruler, Amanullah Khan, who had just ascended the throne and was embarking on the Third Anglo-Afghan War to secure full independence.

Therefore, the currency situation in 1919 was not merely a financial issue but a direct challenge to the authority and modernization ambitions of the Afghan state. Amanullah Khan recognized that a unified, state-controlled currency was essential for true independence and economic development. Consequently, one of his first major acts after securing sovereignty through the Treaty of Rawalpindi in August 1919 was to initiate a sweeping currency reform, laying the groundwork for the introduction of the new afghani in 1923 to replace the fractured system he inherited.