The use of historical money in Tibet started in ancient times, when Tibet had no coined currency of its own. Bartering was common, gold was a medium of exchange, and shell money and stone beads were used for very small purchases. A few coins from other countries were also occasionally in use.
Coins were first used in a more extensive way in the 17th century: these were silver coins supplied by Nepal. There were however various difficulties with this system. In 1763-64 and 1785, the first silver coins were struck in Tibet. In 1792 the first mass-produced silver coins were created under joint Chinese and local Tibetan authority. Coins bearing Tibetan inscriptions only were subsequently replaced by issues which had Chinese and Tibetan legends. This lasted until the 1830s. In 1840, purely Tibetan coinage was struck under Tibetan authority, and this coinage continued being made until 1954, with only two short interruptions when Sino-Tibetan coins were issued.
In 1910, the Tibetan government started producing a large range of copper and silver coins of different denominations, and in 1918 to 1921, gold coins were struck. Tibetan banknotes were first issued in 1913. From 1955 to 1959 no more Tibetan coins were created, although banknotes were still being printed, and by 1959 all of the money was gradually being replaced with renminbi yuan (the official currency of the People's Republic of China).
Methods of exchange in ancient Tibet In ancient Tibet, the use of coins was insignificant. Tibet's main neighbours, India, Nepal and China had had their own coinage since time immemorial. Ancient Tibet however had no locally-struck coinage, although a certain number of coins from Nepal, Chinese Turkestan and China had reached Tibet by way of trade, or as donations to important monasteries. Some of these foreign coins may have entered circulation, but they did not develop into an important instrument for transactions in daily life, because most of the trade within Tibet and also the foreign trade were carried out via barter.Pennant, Thomas (1798) The View of Hindoostan, vol. II Eastern Hindoostan, Henry Hughs, London
Bartering Tibet had the biggest trade volume with China, the main barter items being horses from north-eastern Tibet (Amdo), which were traded for Chinese tea. Tibet also exported medicinal herbs, stag antlers, musk and gold to China, and apart from tea, the Tibetan traders imported silk cloth, porcelain and silver from China.
The trade volume with Tibet's southern neighbours, India, Nepal and Bhutan, was much smaller. The Tibetan traders mainly exchanged salt and wool for grain (including rice) with these countries. Traditionally one measure of salt was traded for one measure of grain at the border with Nepal and India. Other, less important export goods were yak tails, musk and live animals (goats and sheep). For the 17th century, the export of falcons to India is also recorded.
For large transactions within Tibet, gold dust (probably tied up in small leather bags) and Chinese silver ingots were used. These ingots came in different shapes; the most common kind resembled horseshoes or donkey shoes, and were named "rta rmig ma" in Tibetan.Bertsch, Wolfgang (2006) The Use of Tea Bricks as Currency among the Tibetans. Der Primitivgeldsammler, Mitteilungsblatt der Europäischen Vereinigung zum Sammeln, Bewahren und Erforschen von ursprünglichen und außergewöhnlichen Geldformen, EUCOPRIMO. Vol. 27, No. 1, Rüsselsheim, pp. 19–51
For small transactions, various consumer goods (which had about the same standard value among the majority of the Tibetans) could be used. Among others, these were areca nuts, tobacco, ceremonial scarves (khatas, also named khadags; Tibetan: kha btags) and teaGabrisch, Karl (1990) Geld aus Tibet, Winterthur & Rikon Tea was usually traded in the form of tea bricks (Tibetan: ja sbag). This developed into the most important medium of exchange in the 19th century, when a regular coinage had already been introduced into Tibet.
Shell money and stone bead money For very small purchases, cowries (small seashells which were mainly procured in the Maldive Islands and reached Tibet and China via Bengal) and stone beads are recorded as being in use as money in ancient TibetXiao Huaiyuan (1987) Xi zang di fang huo bi shi (The History of Tibetan Money), Beijing
Gold currency before 1650 Before the government of the 5th Dalai Lama was established various small gold ingots circulated in Tibet, some of which were marked with stamps. So far there exists no consent whether these pieces could be regarded as coins. We are well informed about this type of gold currency, which was called "gold sho" (Tibetan: gser sho) because officials of finance of the new Tibetan government received tax payments in the form of these small gold ingots. The officials had to convert these into the current monetary standard. In order to assess the fineness of these pieces one used a standardized gold weight unit, which was referred to as Sewa (Tibetan: se ba) The following types of gold pieces are recorded in lists of the finance officials:
NameGold WeightArea where this Type circulatedTranscription according to Wylie 1. Phagsho 30 Sewa Possibly Phag ri phag zho 2. Gugsho 27 Sewa mNga´ris gug zho 3. Tagsho27 Sewa sPu hrengstag zho 4. Losho 27 Sewa sPu hreng glo zho 5. Changsho 24 Sewa lHa ngambyang zho 6. Gursho 23 Sewa gTsang stod tshong ´dus mgur zho 7. Üsho 20 Sewa dBus dbus zho 8. Esho 19 Sewa dBus e zho 9. Gosho 32 Sewa In the area of Tashilhunpo mgo zho
Furthermore, pieces designated as Tsangsho (Tib.: gtsang zho) are mentioned, but their gold weight is not specified. Lastly a form of gold currency named Sertam (Tib.: gser tam) is mentioned which had a gold weight of 2 sewas. Fifteen Sertam corresponded to one standard Changsho (Chagsho Tshema; Tibetan: byang zho tshad ma). The currency unit Gursho (Tibetan: mgur-zho) was already mentioned by Sarat Chandra Das in his Tibetan-English Dictionary. According to this author 1 Gursho = 24 sewas.
Silver ingots Chinese silver ingots (sycee) were used until the 20th century for larger transactions. They were referred to as rta rmig ma ("horse hoof") and normally weighed 50 tael, or 50 srang (c. 185 grams). There existed also silver ingots of smaller size, named gyag rmig ma (yak hoof) and yet smaller ones, referred to as ra rmig ma (goat hoof). In the early 20th century the large ingots were worth about 60–70 Indian rupees, the ingots of medium size 12–14 rupees and the smallest ingots 2–3 rupees.Hedin, Sven: Central Asia and Tibet. Towards the Holy City of Lhasa, Hurst and Blackert Limited, London 1903, vol. II, p. 433 and 515 British-Indian authors occasionally refer to the silver bars found in Tibet, some of which were imported from Kashgar, as "yambus", an expression which derives from Chinese yuanbao.
Coinage
Earliest coinage, 17th and 18th centuries
The first coinage which was extensively used in southern Tibet was silver coins, which were supplied by the Nepalese Malla Kingdoms and the first kings of the subsequent Shah dynasty from about 1640 until 1791.Rhodes, Nicholas G., Gabrisch, Karl & Valdettaro, Carlo (1989) The Coinage of Nepal from the earliest times until 1911, Royal Numismatic Society, Special Publication, No. 21, London
Tibet provided the silver for the striking of these coins and received coins at the same weight, the Nepalese reaping a handsome profit by alloying the pure silver with copper before the striking of the coins. Owing to a dispute between Nepal and Tibet regarding the fineness of the silver coins supplied by Nepal, the export of these coins was disrupted after the mid-eighteenth century.Martynov, A. S.: O pervych chekankakh monety v Tibete Kratkie Soobshcheniia Akademia Nauk SSSR, Institut Narodoz Azji, No. 69, Moscow, pp. 197–202Martynov, A.S. (July/Sept 1987) Some Aspects of the Qing Policy in Tibet at the Close of the 18th Century. Prehistory of the Manzhou Invasion of Nepal in 1792, Rolamba, Journal of the Joshi Research Institute, Vol. 7, No. 3, Kathmandu, pp. 6–20. Adapted from 1983: Manzhou Rule in China, Moscow, pp. 216–234.
In order to overcome the shortage of coins in Tibet at that time, the Tibetan government started striking its own coins, modelled on Nepalese prototypes. This occurred in 1763-64 and again in 1785 without any interference by the Chinese government.
The Nepalese tried to carry on the very lucrative coin business during the Shah dynasty which had been established by Prithvi Narayan Shah in the Kathmandu Valley in 1768. First the Nepalese supplied mohars (silver coins which weighed about 5.4 grams) of good silver, but wanted these to circulate at the rate of one new mohar for two of the old adulterated silver coins struck by the Malla kings. This would have meant a tremendous loss for the Tibetan traders, and so the Tibetan Government did not accept these terms.
The second Shah king, who ruled from Kathmandu, Pratap Singh Shah, supplied alloyed silver coins during the period 1775 until 1777. Thereafter, when the Nepalese again tried to introduce into Tibet coins of good silver, which should have circulated at a considerable premium compared with the Malla and Pratap Simha coins, the Tibetans refused which resulted in a disruption of trade between Nepal and Tibet. Tibet again experimented with its own coinage in 1785, in order to mitigate the shortage of silver coins.
End of the 18th century In order to resume the profitable coin export on their terms, the Nepalese invaded Tibet in 1788 and again in 1790/91. When the Tibetan Government turned to China for help, an imperial army was sent to Tibet. Together with the Tibetan army they managed to drive out the Nepalese by the autumn of 1792.
The Chinese took this opportunity to tighten their grip on Tibet, and issued an edict which among other dispositions stipulated the introduction of a new silver coinage, struck in the name of the Qianlong Emperor. In the same time it was from now on forbidden to import silver coins from Nepal.Bertsch, Wolfgang (Spring 2008) The Kong-par Tangka of Tibet, Journal of the Oriental Numismatic Society, No. 195, Croydon & Ringwood, pp. 35–46. In order to solve temporarily the shortage of coins in Tibet when the Chinese army arrived in 1791, the Chinese had allowed the striking of the so-called "Kong-par tangkas" which were produced from alloyed silver and had a design copied from Nepalese prototypes. These tangkas which first were produced in the Kongpo province and later in Lhasa, were the first mass-produced silver coins of Tibet and had about the same weight as their Nepalese counterparts, i.e. about 5.2 grams. From 1793 new coins made from almost pure silver were struck in Lhasa. These had both Tibetan and Chinese inscriptions. Meanwhile, the striking of the Kong-par tangkas continued through the year 1792 and in early 1793. Both types of coins were authorised by the Chinese, and struck under joint Chinese and Tibetan supervision, but they were not part of the Chinese currency system, as silver coinage was unknown in China during the 18th and early 19th century (with the exception of the area which is now Xinjiang autonomous region).
In 1791 it was originally planned by the Chinese authorities to cast copper cash coins in Tibet. Had this plan been carried out, the Tibetan coinage could have become part of the Chinese currency system. But this plan was abandoned because it was found to be too expensive to transport copper from China to Tibet in order to cast cash coinage in Lhasa.
Between 1791 and 1836 the Tibetan currency was largely decided on by the Chinese government in consultation with Tibetan authorities, and silver coins were struck to the sho (zho) standard (i.e. about 3.7 grams) in the 58th, 59th and 60th year of Qianlong (1793, 1794 and 1795).Rhodes Nicholas & Gabrisch, Karl (1980) Two Sino-Tibetan Coins, Spink's Numismatic Circular, Vol. 88, No. 5, pp. 172