Six currencies and the stories behind them

Have you ever truly looked at a banknote, not just for its value, but what it tells you about the country in your hand? The colours of the Macanese Pataca, the arts on the Naira, the portraits on the dollar…they are living artefacts holding history and reflecting a country’s identity. At BusinessDay, we know that to truly understand global finance, one must appreciate these often-overlooked narratives.

For millennia, trade relied on cumbersome barter; a shoemaker needing grain had to find a farmer who also wanted shoes. This “double coincidence of wants” was a monumental hurdle. Early solutions emerged in “commodity money,” items like salt or livestock, universally valued and easily divisible. Imagine lugging a cow to the market just to buy a new tool.

The true game-changer arrived with coins. As early as 600 BCE, ancient Lydia, in what is now Türkiye, minted the first standardised coins from electrum. Simultaneously, China pioneered “knife money”; metal objects shaped like blades, not for cutting, but as a universally recognised store of value. These innovations brought unprecedented efficiency and trust, laying the groundwork for more complex economic systems.

The sheer bulk of carrying metal coins for large transactions eventually led to paper money. China again led the way in the 11th century, with the Song Dynasty issuing the first official banknotes. Europeans followed suit much later, in the 17th century, as banks began issuing notes as promises to pay a certain amount of coin. This transition profoundly boosted international trade, enabling merchants to transport vast sums of wealth with remarkable ease.

The 19th century saw the widespread adoption of the gold standard, a system where a country’s currency was directly linked to a specific amount of gold. This offered a sense of stability for international trade, with the British Pound Sterling, backed by the wealth of the British Empire, becoming the world’s dominant currency of that era. However, the economic turmoil of the 20th century, particularly the two World Wars and the Great Depression, made the gold standard untenable.

In 1944, the Bretton Woods Agreement established the US dollar as the new global reserve currency, pegged to gold, with other major currencies then fixed to the dollar. This “dollar order” underpinned global economic stability for decades, driven by America’s formidable post-war economy. The 1970s witnessed another pivotal shift as the US moved away from the gold standard, giving rise to the floating exchange rate system we largely operate under today, where market forces of supply and demand determine currency values.

Read also: Why Ghana Cedi is Africa’s best performing currency in 2025

Chronicles of six currencies

1. The Macau Pataca (MOP)

Macau presents a unique currency arrangement, being one of the rare regions where two commercial banks simultaneously issue their versions of the same legal tender. This system is represents Portuguese colony history and its current status as a Special Administrative Region of China, epitomising the “one country, two systems” framework.

Since 1901, the Banco Nacional Ultramarino (BNU) has held the exclusive right to print patacas. However, as part of the 1999 handover negotiations, the Bank of China also joined, creating the dual-note system we see today. Each bank’s 20-pataca note, the most widely used denomination, offers a distinct artistic and cultural perspective.

The Bank of China’s note boldly features a Southern lion, a prominent symbol in Spring Festival lion dances, which, according to the Bank of China, “represents openness, inclusiveness, and determination to forge ahead” (Salsa Mazlan, IMF). This imagery is coupled with the iconic I. M. Pei-designed science centre and Macau’s floral emblem, the lotus, all presented in striking violet hues, celebrating Chinese heritage and innovation.

In contrast, the Banco Nacional Ultramarino note is a nostalgic nod to Macau’s maritime past. Its design showcases sampans and sailing junks, an 18th-century map, a compass, lotus flowers, a banyan tree, and the bank’s historic headquarters. This design, as described by Mazlan, employs “cartographic imagery to chart the port city’s evolution across centuries of seafaring history” (Salsa Mazlan, IMF), directly reflecting its enduring Portuguese legacy. This dual issuance beautifully illustrates Macau’s blend of East and West, a tiny enclave that has flourished into one of Asia’s wealthiest places, albeit largely driven by its vibrant gaming and tourism sectors.

2. The Nigerian Naira (₦)

The Nigerian Naira’s story shows a young nation’s pursuit of economic self-determination and growth. In the pre-colonial era, various Nigerian cultures utilised diverse items such as cowries, manillas, beads, and even salt as forms of exchange.

The modern monetary system began with the colonial ordinance of 1880, introducing the British Shillings and Pence. From 1912 to 1959, the West African Currency Board (WACB) issued banknotes and coins across British West Africa.

A significant shift occurred on 1st July 1959, when the Central Bank of Nigeria (CBN) issued Nigeria’s currency notes, concurrently withdrawing the WACB-issued notes. This was further refined on 1st July 1962, to reflect the country’s republican status, changing the inscription “FEDERATION OF NIGERIA” to “FEDERAL REPUBLIC OF NIGERIA” (Central Bank of Nigeria website). Further changes in 1968 addressed currency misuse during the civil war.

January 1973 marked a pivotal moment with the transition from the metric to the decimal system. The Naira (₦) became the major unit, equivalent to ten shillings, and the Kobo the minor unit (100 Kobo to one Naira). Denominations initially included ₦10, ₦5, ₦1, and 50 Kobo notes, alongside various kobo coins.

On 11th February 1977, the ₦20 banknote was introduced, becoming the highest denomination at the time and the first to feature a prominent Nigerian citizen – the late Head of State, General Murtala Ramat Muhammed, as a poignant tribute on the first anniversary of his assassination (Central Bank of Nigeria website). Subsequent additions in 1979 introduced ₦1, ₦5, and ₦10 notes, featuring portraits of other national heroes and engravings reflecting Nigeria’s rich cultural heritage.

Further currency changes in April 1984 saw a colour alteration of banknotes, excluding the 50 Kobo, to combat rampant currency trafficking. In 1991, the 50 Kobo and ₦1 notes were replaced by coins. The expansion of economic activities led to the introduction of higher denominations: ₦100 (December 1999), ₦200 (November 2000), ₦500 (April 2001), and ₦1000 (October 2005). The adoption of polymer substrate for the ₦20 in 2007, and later for ₦50, ₦10, and ₦5 notes in 2009, ushered in more durable currency. Commemorative notes for Nigeria’s 50th independence anniversary (₦50 in 2010) and its 100 years as a nation (₦100 in 2014) underscore the Naira’s role in marking national milestones. Most recently, in November 2022, the colours of higher denominations (₦200, ₦500, and ₦1000) were changed to address issues of hoarding, shortage of clean notes, and counterfeiting activities (Central Bank of Nigeria website).

Read also: Naira records four-month high of N1,526.15 on improved liquidity

3. The Canadian Dollar (CAD)

The journey of the Canadian dollar shows gradual independence from British monetary influence and a consistent drive towards innovation. Historically, prior to its distinct currency, various forms of money, including Indigenous wampum and furs, were used for trade (Bank of Canada, “A History of the Canadian Dollar”). During the French colonial period, coins and early forms of paper currency emerged.

In 1858, the Canadian dollar was introduced, aligning its value with the US dollar, a move reflecting increasing economic ties with its southern neighbour and the widespread use of the Spanish dollar (peso) across North America. The Uniform Currency Act of 1871 was a pivotal moment, replacing the varied currencies of individual provinces with a single national Canadian dollar. The Bank of Canada, established in 1934, then became the sole issuer of banknotes, with its first notes appearing in 1935.

Canadian banknotes feature portraits of former Prime Ministers and the reigning monarch; earlier series showcased themes of industry, such as shipbuilding and trains, and poignant scenes like a woman milking cows (Ellen Feingold, National Numismatic Collection, Smithsonian Institution). More recently, Canadian banknotes have embraced durable polymer technology, renowned for its advanced security features. The vertical orientation of some newer notes, such as the Viola Desmond $10 note issued in 2018, offers more space for artistic expression and portraiture, reflecting a contemporary approach to currency design. The iconic one-dollar coin, known colloquially as the “loonie” (due to the loon bird on its reverse), and the two-dollar coin, “toonie,” are widely recognised symbols of Canadian currency.

4. The Indian Rupee (INR)

The Indian Rupee has a history stretching back to ancient times, its name “rupee” derived from the Sanskrit word “rūpya,” meaning “wrought silver” or “stamped with an image.” Ancient India was among the earliest civilisations to issue coins, alongside China and Lydia.

The immediate precursor to the modern rupee was the “rupiya,” a silver coin weighing 178 grains, first minted by Sher Shah Suri in the 16th century, a standard that largely persisted through the Mughal and British periods (Reserve Bank of India website).

Under British rule, the rupee was initially a silver-based currency. After India gained independence in 1947, the British coinage continued briefly until the Republic of India introduced its first coinage, the “Anna Series,” in 1950. A significant change occurred in 1957 with the decimalisation of the rupee, dividing it into 100 “naye paise” (later simply “paise”). As per the Reserve Bank of India, “The rupee remained unchanged in value and nomenclature. It, however, was now divided into 100 ‘Paisa’ instead of 16 Annas or 64 Pice” (Reserve Bank of India website).

The Reserve Bank of India (RBI), established in 1935, became the authority for issuing currency notes. Indian banknotes today prominently feature Mahatma Gandhi, a powerful symbol of national identity and non-violent resistance. The official Rupee symbol (₹), adopted in 2010, is a blend of the Devanagari “Ra” and the Roman “R,” with two parallel horizontal stripes representing the national flag and the “equal to” sign, embodying India’s economic strength.

5. The Swiss Franc (CHF)

The Swiss Franc stands as a symbol of stability. It is widely regarded as a “safe-haven” currency during times of global economic and political uncertainty. Its reputation is rooted in Switzerland’s enduring political neutrality, strong economy, and meticulously managed monetary policy.

Before 1850, Switzerland’s fragmented cantons and cities issued a bewildering array of currencies, leading to a chaotic monetary landscape. The modern Swiss Franc was finally established as the sole legal tender in 1850 under the Federal Coinage Act, a crucial step towards national unity following the formation of the modern Swiss federal state in 1848. It was initially set at par with the French franc.

The Swiss National Bank (SNB), responsible for issuing the Franc, is renowned for its independent monetary policy, often characterised by a commitment to price stability. This unwavering focus has been a cornerstone of the Franc’s strength. As BBVA Switzerland notes, “The Swiss franc… stands out as a preferred choice for investors, sharing this highly-regarded position with gold. This reputation has been hard-earned, thanks to the franc’s robust performance in relation to inflation” (BBVA Switzerland).

Swiss banknotes are celebrated for their sophisticated designs, incorporating intricate patterns and advanced security features, making them among the most difficult to counterfeit globally. Unlike many currencies that feature political figures, modern Swiss Franc notes celebrate abstract themes and artistic elements, such as the human hand, light, and communication, aiming to represent universal values. They are also distinctive for their vertical orientation, providing more canvas for these complex designs. The current 9th series, for instance, focuses on “The Many Facets of Switzerland,” illustrating concepts like scientific endeavour, creative talent, and humanitarian action through symbolic imagery.

6. The Japanese Yen (JPY)

The Japanese Yen, whose name simply means “round object,” was introduced in 1871 as a crucial component of the Meiji Restoration, a period of intense and rapid modernisation that transformed Japan from a feudal society into a major world power. Before the Yen, Japan’s monetary system was fragmented, with various feudal currencies in circulation, including the ryō (a gold coin), mon (copper coins), and shu (silver coins).

The introduction of the Yen centralised the monetary system, replacing these disparate currencies with a standardised, decimal-based system. This was a vital step in building a modern national economy capable of engaging effectively with global trade. The Bank of Japan (BOJ), established in 1882, took on the responsibility of issuing the Yen.

Japanese banknotes are known for their exceptional print quality and detailed designs. Unlike many countries that feature solely political leaders, Japanese notes often honour prominent figures from Japanese history who made significant contributions to science, literature, and education. For example, recent series have featured Hideyo Noguchi (a distinguished bacteriologist), Ichiyo Higuchi (a revered novelist), and Yukichi Fukuzawa (an influential educator and philosopher), reflecting a societal value placed on intellectual and cultural achievements. The reverse sides often depict iconic landmarks, traditional art, or natural wonders, such as the majestic Mount Fuji or the elegant Japanese cranes.

The Yen’s journey mirrors Japan’s extraordinary post-war economic “miracle,” where it swiftly rebuilt itself into a technological and industrial giant. Despite periods of economic challenges, the Yen has consistently maintained its status as a major global currency, often serving as a “safe haven” during times of instability in Asia. Its design and evolution continue to tell the compelling story of a nation that masterfully balances a deep respect for tradition with a relentless pursuit of innovation.

Even as the world increasingly embraces digital transactions, the tangible artefacts of currency, the coins and banknotes, offer insights into our shared human story. As Ellen Feingold, curator of the Smithsonian’s National Numismatic Collection (NNC), aptly puts it, these items “represent every inhabited continent, and they span more than 3,000 years of human history” (Melinda Weir, Finance & Development, citing Ellen Feingold). The NNC, a colossal collection believed to be the world’s largest, provides a tangible link to our past, from tiny Lydian electrum coins, no bigger than a stud earring, to intricate 14th-century Ming Dynasty banknotes.

Feingold emphasises that these collections reveal not just political history, but also “cultural ideas related to values, trust, artistic beauty, and collective identity” (Melinda Weir, Finance & Development, citing Ellen Feingold). She points to a 5th-century BCE Greek coin featuring an owl (representing Athens) and Athena, serving as a powerful statement of community identity. The materials used in currency, too, speak volumes about a society’s economic health.

While the NNC’s vault is primarily for researchers by appointment, selected items are publicly displayed, including a massive, tyre-sized stone ring from the island of Yap in Micronesia, a striking reminder of the diverse and imaginative forms money has taken throughout history.

Currencies are silent narrators, carrying the weight of history, reflecting national aspirations, and dictating the intricate dance of global commerce.

References:

• Central Bank of Nigeria website. “History of Nigerian Currency.” (Accessed June 2025).
• Melinda Weir. “The Smithsonian’s National Numismatic Collection is thought to be the world’s largest of its kind.” Finance & Development, IMF. (Accessed June 2025).
• Salsa Mazlan. “Macao SAR’s unique history has yielded different yet equally elegant versions of the same banknote.” Finance & Development, IMF. (Accessed June 2025).
• Bank of Canada. “A History of the Canadian Dollar.” (Accessed June 2025).
• Reserve Bank of India website. “History of Indian Coinage.” (Accessed June 2025).
• BBVA Switzerland. “Swiss franc: safe haven asset and its history.” (Accessed June 2025).
• Further research on Japanese Yen history and design from reliable economic and numismatic sources.