Forgotten Ottoman Empire


In 1950, the Palestine Monetary Board changed its name to Jordan currency board (Jordan Currency Board). Act of February 1959 provides for the replacement of the Institute for Monetary Board of the Central Bank of Jordan, but this possibility has remained un-implemented until October 1, 1964.

Indian rupee prevailed

Currency fate of Iraq was formed in a similar way. Decision of the British government after the war, Iraq was incorporated into the Indian monetary system, resulting in rupee became the primary means of treatment. In 1931, under pressure from local political elites in London was formed by the Iraqi currency board (Iraq Currency Board). It has issued new convertible Iraqi dinars, equal par pound.

Despite the release of the Iraqi dinar, as well as in East Africa, the Indian rupee prevailed in circulation. The occupation authorities have considered currency board as a temporary measure until Iraq is not organized an independent central bank. The establishment of a central bank, was considered in the metropolis, to the independent nation is more appropriate. "Temporary" measure lasted ten years, the National Bank of Iraq was established after the Second World War, but really began to function in 1949. Several British colonies and protectorates in the Arabian Peninsula currency board operated in 1950-1960 (Table 1). Until the mid-XX century, most residents Arabia used gold and silver coins, bank notes were not very popular due to the low credibility. The main unit of currency in the Arabian Peninsula has performed Indian Rupee.

Widespread paper money soon prompted local authorities to reorganize the monetary system. Currency board was established in Kuwait (1961), Aden (1965), Bahrain (1965), Qatar / Dubai (1966) and Oman (1970). Yemen Arab Republic was an independent political entity and was never under British tutelage. However, in Yemen was also established currency board. Currency board in the United Arab Emirates came in 1973, when they gained independence. However, officially it bore the sign "central bank".

"The sun never set ..."

Colonies were a source of valuable raw materials for the mother country. Cotton, Lebanese cedar, metals, coal, and above all the oil from the Persian Gulf - all, like a vacuum cleaner, is drawn to the mother country and went into the furnace of British Industry. In 1909, the British Empire was 20% of the Earth, is home to 23% of the population. British owned territory in every part of the world.

Figuratively as Rudyard Kipling, "The sun never sets on the British Empire." Although the industrial might of the early XX century, Britain was not in third place behind the United States and Germany, it continued to be the financial center of the world and a major trading power. The basis for the expansion of British Empire is an economic expansion. Conquest of Britain followed her investments. New areas of raw materials meant new markets and new facilities investment.

The monetary authorities of the colonies also worked for the good of the empire. Sprawling network of currency boards served as a pillar of the British financial sector. First, the reserve currency boards were composed of sterling assets. Monetary authorities colonies stable demand for debt Britain and its dominions. As a result, the cost of state power in the vast empire covered by controlled territory.