As the ancient Latin author Publilus Syrus once said, “Money alone sets all the world in motion”, and it’s true—money has been one of humanity’s major discoveries which shaped our lives for thousands of years. The world revolves around money, especially in international trade, where currencies are not only used as a transactional tool, but also the center of global economic and political decisions.
The world has about 180 different currencies. However, only few have remained and are still in use today. In this article, we will take a brief look at economic history to explore the top 10 ancient currencies that have survived the relentless march of monetary change.
What Makes a Currency Old?
First of all, currency could be understood as a type of money in a coin or paper banknote form, distributed from the central bank to the holder of the note. Now, what exactly makes a currency considered old?
1. Currency Age in Economic Context
Economically speaking, a currency is considered old if it has been extensively used since its officially issued. In a bulletin released by the Bank of England, an “old” currency’s physical condition and usability mainly affects their trustworthiness and acceptability. Which is essential to replace worn banknotes with new ones to keep the currency reliable.
2. “First Issued” vs “Still Circulating”
You may have heard about the terms “first issued” and “still circulating”. Simply put, the term “first issued” refers to the exact date when a currency—whether it is a banknote or coin—was originally introduced as a payment medium by a country’s monetary authority.
In contrast, according to Investopedia, “Still circulating” or “currency in circulation” means that a currency is still actively used and acknowledged by sellers and consumers in transactions.
Top 10 Oldest Currencies Still in Circulation
1. British Pound Sterling
At the top of the list, recognized as the oldest currency still in use and is one of the most exchanged on the forex market is the British Pound Sterling or GBP. Firstly issued over 1,200 years ago around 775 AD in the Saxon kingdoms, its name is derived from the Latin word “libra” which refers to the basis of the currency’s value—silver.
As mentioned in the Corpratefinanceinstitute site, pound coins were first issued in 1489, while pound notes were circulated in 1694. The pound sterling was then officially divided into 100 pence on February 15, 1971. While the UK once considered to link its value to the German Deutsche Mark in 1990, they chose to stick to their own currency, even after the euro currency appeared in 2002.
2. Japanese Yen
The Japanese currency known as “yen” originated back in 1871, after the modernization of Japan which is known as Meiji Restoration. With yen officially in circulation, traditional transaction instruments such as clan notes and paper money issued by feudal lords were no longer accepted, according to Britannica.
Ranging from 1,000 to 10,000 yen, yen as the national currency of Japan featured prominent cultural figures on their banknotes. For example, Murasaki Shikibu—the author of “The Tale of Genji” on the 2,000 yen bill, Hideyo Noguchi on the 1,000 yen bill, and Fukuzawa Yukichi on the 10,000 yen bill.
3. Swiss Franc
Standing strong since 1850, is Switzerland’s currency—the Swiss Franc. According to the Swiss National Museum, exchanging foreign coins, a fat man or even a horse was allowed as a transaction method. That was until the Swiss Franc was established as a monetary unit by the federal government.
Interesting enough, the names and values of franc often originated from the places where they were minted. For instance, the word “franc” originated from “Francorvm Rex”—the French King’s title, and “thaler” that inspired the word “dollar”, was named after the silver-rich region of Sankt Joachimsthal.
4. U.S Dollar
Next up, is a pretty well-known currency used widely around the world, that is the United States Dollar. The U.S Dollar—originally modeled after the Spanish Dollar—was commonly used across America in the 16th to 19th century. At first, dollar coins remained as a legal tender until 1857.
3 years later, paper dollar notes or greenbacks were introduced and emerged as the world’s primary currency in 1944 after the Bretton Woods Treaty. Changing to the fiat currency system in the 1970s, this approach allows the U.S Dollar’s value to float freely in global markets.
5. Indian Rupee
According to Indianexpress, the origin of Indian Rupee can be traced to the Mauryan Empire around the 6th century BCE, with the issuance of punch-marked coins made out of materials like gold, copper, and silver. Later in the 18th century, paper currency was introduced by The British, and they maintained control of the currency until 1947, when India gained its independence.
In 1957, the rupee was decimated into 100 paise. A 500 banknote with the face of Mahatma Gandhi—India’s freedom fighter—was introduced in 1987. Unfortunately, in 2016, the 500 and 1000 notes got demonetized in order to combat black money.
6. Russian Ruble
Dating back to the 13th and 14th centuries, the Russian Ruble is regarded as the second oldest currency in the world. It was officially recognized as the nation’s currency in 1704, when Tsar Peter the Great created the first standardized silver ruble.
Surviving the Russian Empire, Soviet Union, and Modern Russian Federation, it has undergone major changes, including the introduction of banknotes in the 18th century and several redenominations in the 20th century. Despite periods of harsh devaluation, the ruble continues to be Russia’s national currency, therefore representing its long monetary history.
7. Chinese Yuan
Known as one of the pioneers of currency, China’s early forms of currency dated back to thousand years ago. But its official currency—popularly known as Yuan was established in 1889. As explained in Ebanx Insights, the Chinese Yuan was widely used in Southeast Asia due to Spanish colonial influence. The founding of the People’s Bank of China in 1949 marked the beginning of modern yuan or renminbi (RMB) and a series of coins and notes were minted throughout the 20th century.
Changes and redesigns were placed between 1987 and 1997, reflecting China’s swift economic growth and policy shift. Recently, China has just released the digital version of Yuan called eRMB in aims to digitize circulation of banknotes and coins.
8. Thai Baht
In Southeast Asia, Thailand’s currency—Thai Baht—is known to be one of the oldest currencies in circulation, linked back to the 13th century. The Thai Baht has a long history with other currencies over the years, it was linked to the British Pound in the early 20th century, Japanese yen during World War II, and the U.S dollar from mid 1950s to 1997.
The Thailand baht’s value plummeted to around 56 baht per dollar due to the Asian Financial Crisis back in 1997. Since then, baht has been commonly traded between 25 to 35 baht per U.S dollar.
9. Danish Krone
The earliest Krone coins were initially minted back in the 10th century, but modern Danish krone was introduced as the Kingdom of Denmark’s legal tender in 1875, after Denmark joined the Scandinavian Monetary Union.
Over time, the Krone shifted from silver coins to banknotes. Its value is now linked to the euro under the European Exchange Rate System. Due to declining use of cash, in recent years Denmark has outsourced the printing of Krone banknotes.
10. Moroccan Dirham
Morocco—a country located in Northwest Africa—is also regarded as a country with the oldest currency still circulating. Named after the ancient Greek dharma currency, Moroccan dirham was formally launched in 1882 as part of a new coinage system, along with the rial and mazuna.
It was reintroduced in 1960 as a replacement for the Moroccan franc that existed when Morocco became a French Protectorate in 1912. Moroccan dirham is currently still in use in the form of coins and banknotes with designs that honors Morocco’s cultural heritage, such as pictures of King Mohammed VI and traditional architecture motifs.
How Do These Currencies Survive the Test of Time?
1. Adjusting to Modern Financial Systems
Innovation and adaptation is a contributing factor in ensuring a currency’s long-term sustainability. As technology advances, many countries have embraced digital notes. Take for example China with its eRMB and India with its digital rupee released in 2022, according to Mondaq.com.
As reported by thedigitalproject.org, the U.S dollar has also came up with extensive development of stablecoins and tokenized deposits, combining blockchain technology and digital payment platforms to modernize its infrastructure while also preserving its dominance in global finance.
2. Governmental Stability and Economic Factors
The British Pound Sterling is one of the prime examples of a currency that thrives due to its economy and governmental stability. The pound’s stability is boosted by the Bank’s control over banknote issuance and its floating currency policy since 1971, allowing market forces to set its value.
Moreover, UK’s decision to keep their own currency rather than adapting to the euro has retained national monetary sovereignty. This combination of governmental authority, monetary policy independence, and sturdy financial infrastructure secures the Pound’s durability.
3. Colonization and Colonial Influence
Colonization significantly affected the viability of the Indian rupee by introducing standardized paper currency and centralized monetary regulation under British rule through the Paper Currency Act in 1861. This created a unified monetary system that persists after India’s independence, allowing additional modernization, such as the decimalization of Rupee in 1957.
Understanding the history of ancient currencies around the globe helps us gain valuable insights on how money evolves to meet the needs of constantly changing economies and society. Currency is more than just a medium of exchange, but rather a reflection of one country’s development and history.
