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Auction: 403 - World Banknotes at NY INC
Lot: 350

Reserve Bank of India, Persian Gulf Issue, 100 Rupees, ND (1959-70), serial number Z/4 087320,

the Gulf Rupee stands as a testament to bygone era, serving as the official currency in the British protectorates of the Arabian Peninsula surrounding the Persian Gulf from 1959 to 1966. These territories have since evolved into the sovereign nations of Kuwait, Bahrain, Qatar, Oman, and the United Arab Emirates. Issued by the Government of India and the Reserve Bank of India, the Gulf Rupee held an equivalent value to its Indian counterpart throughout its brief but impactful existence.

Until the mid-20th century, the Indian Rupee reigned as the official currency in the eastern Arabian Peninsula, encompassing Kuwait, Bahrain, Qatar, the Trucial States, and Oman. This arrangement designated the Indian Rupee as the common currency across these territories and in India itself. Tied to the British Pound at a rate of 13 Indian Rupees to 1 Pound, this system endured until the late 1950s.

India faced mounting challenges posed by gold traffickers in the Gulf region, with operations expanding notably in Kuwait, Bahrain, and Dubai. Smugglers engaged in a repetitive cycle of taking gold to the Indian subcontinent, exchanging it for Indian Rupees, and using these Rupees for subsequent transactions. The scale of gold trafficking became so substantial that it strained India's foreign reserves, leading to economic repercussions. In response, the Indian government introduced the Gulf Rupee in 1959, initially pegged at par with the Indian Rupee. This new currency aimed to replace the Indian Rupee for circulation exclusively outside India, marking a significant departure from the established currency arrangement.

On 6th June 1966, India devalued the Gulf Rupee against its domestic counterpart. Following this devaluation, the Gulf Rupee era concluded as several states in the region introduced their own national currencies. Kuwait adopted the Kuwaiti Dinar, Bahrain created the Bahraini Dinar, and Qatar, alongside most Trucial States (later the United Arab Emirates), embraced the Qatar and Dubai Riyal. Abu Dhabi utilised the Bahraini Dinar until 1973, while Oman continued with the Gulf Rupee until 1970 before adopting the Omani Rial.

The Gulf Rupee serves as a fascinating chapter in the economic evolution of the Arabian Peninsula, reflecting the region's transition from shared currency to independent monetary systems. The banknotes, characterised by their unique design and historical significance, serve as echoes of a time when the Gulf countries navigated the complexities of economic autonomy in the ever-shifting sands of history
(Pick R4, Jhun&Rez 6.12.4.1), in PMG holder 50 About Uncirculated, staple holes at issue, pinholes

Estimate
$6,000 to $9,000

Starting price
$4000