[Solved] Tughlaq's Gold Coins and Token Currency | UPSC

Consider the following statements:
Assertion (A): Muhammad-Bin-Tughluq issued a new gold coin which was called Dinar by Ibn Battuta.
Reason (R): Muhammad-Bin-Tughluq wanted to issue token currency in gold coins to promote trade with West Asian and North African countries.
Code:

[UPSC CSE Prelims 2006]

Detailed Solution & Historical Context

Concept

Muhammad-bin-Tughlaq is known for his innovative but often failed economic and administrative experiments. His coinage reforms were ambitious attempts to manage imperial wealth.

Authentic Source Evidence

Ibn Battuta records the use of high-quality gold coins (Dinar) during MBT’s reign. However, the 'Token Currency' was issued in brass/copper, not gold, as a response to global silver shortages.

Analytical Breakdown

Logic 1: Assertion (A) is true. MBT’s gold coins were of excellent quality and weights, noted specifically by foreign travelers.

Logic 2: Reason (R) is false. Token currency was not made of gold (it was copper/brass) and its motive was to compensate for silver scarcity, not specifically for West Asian trade promotion.

Conceptual Deep Dive & Logic

"Why did the token currency experiment fail?"

The state failed to maintain a monopoly on minting, leading to large-scale counterfeiting by citizens in their own homes.

Examiner's Mindset & Pro-Tip

"While MBT is often called 'mad', his currency reforms were based on sound economic principles used in China and Iran; the failure was one of administrative execution."

Topic Clusters (click to see related topic questions)

Ibn Battuta 3

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Consider the following statements: Assertion (A): Muhammad-Bin-Tughluq issued a new gold coin which was called Dinar by Ibn Battuta. Reason (R): Muhammad-Bin-Tughluq wanted to issue token currency in gold coins to promote trade with West Asian and North African countries.Code: