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The History of British Currency in the Middle East


British involvement in the Middle East began with the Aden Settlement in 1839. The British East India Company established an anti-piracy station in Aden to protect British shipping that was sailing to and from India. The Trucial States were similarly brought into the British Empire as a base for suppressing sea piracy in the Persian Gulf. Involvement in the region expanded to Egypt because of the Suez canal, as well as to Bahrain, Qatar, and Muscat. Kuwait was added in 1899 because of fears about the proposed Berlin-Baghdad Railway. There was a growing fear in the United Kingdom that Germany was a rising power, and there was concern about the implications of access to the Persian Gulf that would arise from the Berlin-Baghdad Railway. After the First World War the British influence in the Middle East reached its maximum extent with the inclusion of Palestine, Transjordan and Iraq. At first, Indian rupees were introduced to Aden and the Gulf States, and later during the First World War to Mesopotamia. After the First World War, the Indian rupee in British East Africa was replaced by a florin and then a shilling, which eventually replaced the Indian Rupee in Aden by 1951. Meanwhile, in 1927 a new Palestine pound at par with the pound sterling was introduced in the mandated territories of Palestine and Transjordan to replace the Turkish and Egyptian currencies. The East African Shilling in Aden was replaced in 1965 with the South Arabian Dinar at par with the pound sterling.


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