Home page News History Dhivehi Maps Fanditha Glossary Links Zipped E-mail

The Bank Notes of the Maldives by Peter Symes and Murray Hanewich Australia and Canada, 2001 Index to sections below The first Maldivian banknotes Currency in the atolls The first Maldivian banknotes The ½ rufiyaa note has the single vignette of the lateen-rigged dhoani and palm tree (right) in the centre of the note and is a uniface note. All other denominations have an illustration on their back, with each illustration depicting a building on Malé. Most of the buildings are associated with the palace of the Sultan of the Maldives, known as the Court of Eterekoilu. Demolished in 1968, because it was seen as a possible rallying point for royalists, aspects of Eterekoilu have been captured for posterity on these bank notes of the first series... 1 Rufiyaa A two-storeyed building (above), which was used for different purposes over the years. At the time the bank notes were prepared the building was the Customs House. It later became a Post Office and was last used as the Office of the Prime Minister. To the left of the building is the main bastion of the town wall. The bastion was called the 'Bodu Koattey Buruzu'. There was a flagstaff on the Bodu Koattey which flew the State ensign if there was a foreign vessel in port. The bastion has since been torn down as part of the harbour redevelopment and the old Customs house has been demolished, now being the site of Republic Park... 50 Rufiyaa The Ibrahimiyya Building (left), a two-storeyed construction by the wharf in Malé harbour. Used for many purposes over the years, including the Customs House, it no longer remains standing. To the left of the building is the Dhathurah Araavadaigannavaa Gate (Royal Embarkation Gate), the entrance to the Court of Eterekoilu from the harbour. 100 Rufiyaa Buildings and gardens of the Court of Eterekoilu (right) looking from the north. The tallest building on the right is the Aa-Koattery Buruzu (New Fort Bastion), illustrated on the 5 rufiyaa note. The tall building on the left is the Veyodorhu Ganduvaru Mathige, illustrated on the 10-rufiyaa note. Most of the Sultan's Palace and gardens were torn down in 1968. The area now includes the 'Sultan's Park', which surrounds the National Museum, while the Islamic Centre and Mosque (illustrated on the 500 rufiyaa note) is built on the area in the foreground of the illustration. The notes of the first series are unusual, in that two languages appear to be used on the notes. The apparent use of two languages is due to the use of Arabic and Thaana scripts. The use of two languages by itself is not unusual on a bank note, but it is their use on these notes that is peculiar. In most cases, if more than one language is used, the information on the bank notes is repeated in each language, but on these notes the languages are used for different elements of the text. There is however, a reason for this use of Arabic and Thaana scripts. In most literature concerning this first issue of bank notes, the currency of the Maldives is referred to as 'Rupees'. This appears to be due to the perpetuation of the term, by foreign observers, from the days of the Ceylonese silver rupees. Locally, the notes were always referred to as 'Rufiyaa'. Until the sixteenth century the Dhivehi language was written in the Dives script. When Muslim scholars tried to adapt Arabic script for use with Dhivehi, they found it difficult to adapt the phonetics of Dhivehi to Arabic. Similarly, the Dives script did not easily lend itself to spelling Arabic words. For some time, Arabic and Dives scripts were used alongside each other in the same written sentences, with Dives used to write Dhivehi words and Arabic used for Arab words that had been adopted by the Maldivians. The problem with this approach was that Arabic is written from right to left, while Dives is written from left to right. A strange compromise was ultimately reached, with an entirely new script being developed. The new Thaana script, written from right to left, was developed from Arabic numerals, Dives numerals, and a number of derived characters. Vowels were created from Arabic diacritical marks. While the Thaana script proved a success, scholars continued to write Arab words in Arabic, largely out of respect to the language of the Prophet. At the time that the bank notes were introduced, the convention of writing Arab words in Arabic was still maintained. So, on the notes of the first issue, Arabic is used for the title of the issuing authority, 'The Government of the Maldives' (front and back), and for the dates of authorization. Thaana script is used for the denomination of the note (front and back). The mixture of the two scripts in one phrase can be seen in the title of the signatory - the 'Head of the Department of Finance'. The words for 'Department of Finance' are written in Arabic, but the words for 'Head of' are written in Thaana script. A further complication to the scripts being used on the notes appears in the serial numbers and the numerals for the denominations. The denomination always appears in Western numerals, while the serial numbers have a Latin letter as the prefix followed by a six-digit number constructed with western numerals. To the right of the serial numbers is the word 'number' written in Arabic. This usage was due to the English word 'number' being introduced into Dhivehi from Urdu. As Urdu words were spelt in Arabic, 'number' was written in Arabic when used in Dhivehi texts. A peculiarity of these notes is the lack of a promissory clause. There is no indication of a promise to pay, nor any indication that the notes are legal tender. The lack of a promissory clause continues to be a feature of all notes issued in the Maldives. The notes of the first issue are signed by Aithireegey Mohamed Amin Dorhimeyna Kilegefan (or more simply 'Mohamed Amin'), in his capacity as head of the Department of Finance. It is worth observing that the notes of this issue are denominated in 'Rufiyaa'. In most literature concerning this first issue of bank notes, the currency of the Maldives is referred to as 'Rupees'. This appears to be due to the perpetuation of the term, by foreign observers, from the days of the Ceylonese silver rupees. Locally, the notes were always referred to as 'Rufiyaa'. Certainly, the Dhivehi text on these notes, and on all subsequent issues, clearly reads Rufiyaa.... top Currency in the atolls For many centuries, various coins circulated throughout the Maldives, with most of the coins being minted locally. The coins were denominated 'Laari' and there were two main denominations in circulation. These were the 'Bodu Laari', equivalent to 4 laari, and the 'Kuda Laari', which was equal to 1 laari. Ceylonese silver rupees were introduced into the Maldives from the 1850s by 'Borahs', Indian merchants based in Ceylon. One silver rupee was equal to 120 laari. The silver rupees never attained a formal status in the Maldives, but they became a de facto legal tender. As well as the Ceylonese silver rupees, coins such as British sovereigns and gold coins from India and the Middle East also circulated in the Islands. This situation continued into the modern era until the advent of World War II. During the economic recession of the War, the Maldivian government found it difficult to acquire metal for the production of coins and the foreign silver and gold coins became unavailable, so they determined to introduce paper currency. While wishing to introduce their own paper money, it became impractical to do so because of the War. Consequently, on 19 March 1942 the Ministries of Home Affairs and Finance issued a statement declaring that Indian and Ceylonese bank notes would be used in the Maldives from 19 March 1942 until six months after the end of the war. It is uncertain how wide-spread the use of Indian and Ceylonese bank notes became in the Maldives during this period. According to one source, the use of these notes continued until the Maldives introduced their own bank notes. Another source indicates that Indian and Ceylonese bank notes never circulated in the Maldives, suggesting that the war-time measure may never have had to be implemented. Following the end of the War, India and Pakistan became independent nations (1947), followed soon after by Ceylon (1948). In 1947, with these changes looming, it was realized that the Maldives should have its own bank notes, replacing foreign currency in circulation, as well as maintaining its own coins. Various ideas were discussed, but in the end it was decided to introduce a currency denominated in 'Rufiyaa'. When the bank notes were first introduced, 1 Rufiyaa was equivalent to 120 Laaris, which had been the same exchange rate for the silver rupee. The present system of 1 Rufiyaa being equivalent to 100 Laaris was introduced some years later. On 12 August 1947 the People's Majlis (Council) passed Bill No. 2/66 (The Bill on Maldivian Bank notes) which authorized the introduction of Maldivian bank notes and the withdrawal of Indian and Ceylonese bank notes. The Bill also authorized the formation of a committee to oversee matters concerning the Maldivian monetary system. The committee consisted of Government Ministers and Members of the People's Majlis. top

Peter Symes The World of Paper Money Reference Site for Islamic Banknotes

Maldives Culture is an independent internet magazine of Maldivian cultural issues.
Editors and translators: friends and Michael O'Shea, Australia
We invite contributions from Maldivians and others interested in Maldives.
Contributions and comments - mc_editors@hotmail.com