Gulf rupee

The Gulf rupee is a former monetary unit that was in Bahrain, Qatar, Kuwait, Oman and the seven emirates of the so-called Treaty of Oman from 1959 legal tender. The Gulf rupee was linked 1:1 to the Indian rupee, which was issued by the Reserve Bank of India. In 1961, the rupee was replaced by national currencies, the last country sparked the rupee from Oman Riyal Saidi by the predecessor of the Omani Rial.

History

Since Great Britain, completed 1820-1853 protectorate treaties with local ruling on the Arabian coast of the Persian Gulf, these territories were administered by the Persian Gulf Residency, which was under its part of the Bombay Presidency. Thus, the Indian rupee was legal tender in the British protectorates. Although the Indian rupee had already been spread by close trade contacts between the Gulf and India, but they competed until the early 20th century, trade with other silver coins such as the Maria Theresa thaler.

After India's independence from Britain in 1947, the Indian rupee cash remained in the British protectorates in the Persian Gulf. This led in the 1950s by the smuggling of gold from the United Arab Emirates and the associated outflow of cash from India to problems. In India, the private import and export of gold was prohibited, the State retained thereon a monopoly with appropriate taxation. The estimated gold reserves in private hands in India in 1959 was 1.75 to 2 billion U.S. dollars, about two-thirds of the value of the Indian currency holdings. In order to curb the smuggling, was introduced in May 1959 a special rupee for circulation outside India by The Reserve Bank of India ( Amendment) Act 1959. That person, the Gulf Rupee currency was 1:1 bound to the Indian rupee and between the two currencies was a free convertibility. Repealed was the convertibility of the Indian Rupee in British Pound Sterling, it remained for the Gulf rupee exist, but only at the branch of the Reserve Bank of India in Bombay, which was indicated by a yellow printing on the banknotes.

As the first country Kuwait replacing the rupee in April 1961 by the Kuwaiti dinar. This was followed by Bahrain in 1965 with the Bahraini Dinar, Qatar and the United Arab Emirates today in 1966, when the Indian rupee was devalued. The last country Oman replaced the Gulf rupee with their own currencies on May 7, 1970, but at the devaluation of the Indian rupee in 1966 for binding to the British Pound was exclusively retained.

Bills

There were notes of 1, 5, 10 and 100 rupees, and two special notes to 10 and 100 rupees for pilgrims to Mecca. These two notes were not convertible into Indian rupee, but only to the Gulf rupee and contributed in addition to the print HAJ (German Hajj ). Your edition was limited to 1959.

All banknotes corresponded design contemporary Indian banknotes with two exceptions. On the one hand convertibility was limited, instead of the text I promise to pay the bearer on demand the sum of ... at any office of issue, the text was changed to ... at the office of issue at Bombay, also we changed the colors.

Own coins the Gulf rupee did not exist.