Historical Sketch

The Portuguese navigator Vasco Da Gama was the first European to arrive in Zanzibar in 1498. The Portuguese colonization lasted until the mid-17th century when the Sultanate of Mombasa took over. In 1698, Zanzibar came under Omani influence and gradually became the center of the Arabic sultanate. In 1840 the Omani capital was moved to the island, and in the late 1850s, a civil war over succession struggle led to Zanzibar's secession in 1861. In the 1880s, Zanzibar lost its possession along the East African coast to the European imperial powers, and in 1890 the sultanate itself came under British protectorate, with the monarchy kept in place nominally. British rule lasted until 1963, when the Sultanate of Zanzibar attained independence in December of that year. Already in following January, the monarchy was overthrown, and a short-lived people's republic got established. Three months later, Zanzibar merged with mainland Tanganyika to form the United Republic of Tanzania.

Monetary History Overview

During Omani rule, Zanzibar did not have any distinctive monetary system. As a major trading post, foreign coinage entered through long-distance trade, mainly the every prevalent Maria Theresa Thaler and Indian silver and copper coins. In the early 1880s, an attempt was made to create the Zanzibari Riyal as national currency. A series of gold and silver coins in the Egyptian bimetallic standard were produced, together with a copper subsidiary coin in the Indian standard. The project was never brought to live. Only the copper coins were issued in large numbers, the silver Riyal got produced in some quantity but issued, while all other denominations, in particular gold, did not get beyond patterns. The next attempt at creating a national currency was made in 1908. The Zanzibar Currency Board was established that began issuing the Zanzibari Rupee on par with the Indian Rupee, but unlike its model, decimal from the beginning. Indian currencies and British gold coin remained current while the Thalers were demonetized a few years later. The Currency Board also issued paper money in modest amounts. The distinct currency was abandoned again in 1935, and beginning of the following year, Zanzibar joined the East African common currency area of the British possessions on the mainland.

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