Gulf rupee
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Categories: National currencies | Currency stubs
The Gulf Rupee, also known as the Persian Gulf Rupee (XPGR), was introduced by the Indian government as a replacement for the Indian Rupee for circulation exclusively outside the country with the Reserve Bank of India [Amendment] Act, 1 May 1959. Prior to this, in the early to mid 1900s, the Indian Rupee had been extensively used as currency in the countries of the Persian Gulf and the Arabian Peninsula. This creation of a separate currency was an attempt to reduce the strain put on India's foreign reserves by gold smuggling. After India devalued the rupee on 6 June 1966, those countries still using it - Oman, Qatar and what is now the United Arab Emirates (known as the Trucial States until 1971) - replaced the Gulf Rupee with their own currencies. Kuwait and Bahrain had already done so in 1961 and 1965 respectively.
The introduction of the Gulf Rupee was only a stop-gap measure to encourage the political entities in the Gulf to decide on their own currencies. This was because it was distrusted by traders in the Gulf as it was not freely convertible as the Indian Rupee had been and so money could not be treated any longer as just another commodity.
The Gulf Rupee was distinguished from the Indian Rupee by having a "Z" prefix to its serial numbers, but otherwise the denominations, designs and colours of the two currencies were the same. The one rupee was issued by the Indian Government and the 5, 10 and 100 denominations by the Reserve Bank of India.
Countries using the Gulf Rupee and its replacement currencies
| Country | New Currency | Date changed |
|---|---|---|
| Bahrain | Bahraini Dinar (BHD) | 1965 |
| Kuwait | Kuwaiti Dinar (KWD) | 1961 |
| Oman | Omani Rial | 1966 |
| Qatar | Qatari riyal (QR) | 1966 |
| The Trucial States (now The United Arab Emirates) | UAE dirham (AED) | 1966 |
Sources
- Tables of modern monetary history: Asia
- Coinage and Currency in Bahrain (from the Bahrain Government website)