Get to Know the History of Thai Currency, From Beads, Coins to Today's Baht Denominations!

Thailand is a country known as the white elephant, this country is in the Southeast Asian region like Indonesia. Maybe you are already familiar with this country, where Thailand is also known for its quite extreme culinary delights, such as grilled scorpions, fried crickets and so on.

But have you ever heard of the history of currency in Thailand? How did ancient ancestors exchange goods and develop using the baht currency. Check out the full explanation below here!

History of Thai Currency

In the beginning the exchange of goods or goods exchange activities was carried out using shells, ancient beads to Pot Duang (bullet coins). As we know that Thailand adheres to a constitutional monarchy system of government and is led by a King. 

During the reign of King Mongkut, Thailand spread its influence by establishing diplomatic relations with western countries, thus causing trade conditions to improve.

This caused the need for money exchange to increase, where at that time the object used in transactions was Pot Duang (bullet coin). The increasing need caused King Mongkut to look for other alternatives by ordering the first banknotes called Mai in 1853, even though at the time it was implemented many people preferred payment to be made with Pot Duang.

As time progressed in 1873 led by King Chulalongkorn, payments in copper coins experienced a scarcity due to the rising value of tin and copper on world markets. This causes people to use money in casinos as a means of transaction. To overcome this problem, King Chulalongkorn uses banknotes with the lowest value, namely Att Kradat.

Coins in the Early Kingdoms of Thailand

In the 1st to 7th centuries Thailand had various forms and sizes of money, this was also marked by the influence of the emergence of the Indochina kingdom in Thailand. The use of coins in Thailand has been used for quite a long time. 

Several coin currencies are used in the transaction process, such as Dok Jan coins originating from the Sriwijaya kingdom. clay coins, Lenna royal coins to Pot Duang coins. The coin currency that has been circulating in society for a long time is the Pot Duang coin.

The Pot Duang coin (bullet coin) is currently the oldest transaction instrument, appearing around the 13th to 14th centuries during the Sukhothai period. These bullet coins were made by hand, where the metal was formed by bending and twisting into a ball resembling a bullet. 

Pot Duang coins (bullet coins) circulated until the reign of Rattanakosin and experienced withdrawals in 1904 during the reign of King Rama V. So that the circulation of the Pot Duang currency lasted for 600 years in Thailand.

The Appearance of Paper Money

Through various rejections and lack of success in using paper currency, in 1890 the Thai government planned to issue paper money called Ngoen Kradat Luang or Treasury Notes. This action was supported by the condition of the Thai government which could not provide coins in response when the expansion of the economy and trade occurred.

Eventually treasury notes was not successfully circulated because it was considered not sufficiently efficient in managing banknotes. Until 1902 the Ministry of Finance was formed which officially existed in Thailand. It was through this ministry that the issuance and exchange of transactions using banknotes which were circulated on September 23, 1902, was the beginning of the inauguration of Thailand's modern banknotes. 

Baht Banknotes in Thailand

When Thailand was under the reign of King Rama and King Chulalongkorn, paper currency was again simplified into two forms of fractions, namely satang and baht. Today we know it with the more modern baht currency.

The baht notes issued by the government initially had a nominal value classification of 1,5,10,40 to 800 baht. However, currently the value of the Thai currency is simplified again with the number 25. For example, 25 and 50 satang coins, as well as 1,2,5,10, up to 1.000 baht

That's the history of the development of currency in Thailand, which is still used with Baht banknotes. The medium of exchange is used to calculate the value of an item that we can give and own. Hopefully this information can add to your insight!