American Journal Of Social Sciences And Humanity Research
188
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VOLUME
Vol.05 Issue04 2025
PAGE NO.
188-191
10.37547/ajsshr/Volume05Issue04-42
Evolution of The Monetary Policy in The Khiva Khanate
(Mid-19th Century to Early 20th Century as An Example)
Feruza Amonova
Doctoral student at the institute of History of the FA of Uzbekistan, PhD in history, Uzbekistan
Received:
28 February 2025;
Accepted:
29 March 2025;
Published:
30 April 2025
Abstract:
This article explores the consequences of the Russian empire's economic colonial policies in the Khiva
khanate during the second half of the 19th century and the early 20th century, focusing on the participation of
financial institutions in monetary relations, changes in the monetary system, and the reforms carried out by the
local government. The analysis is based on national sources and documents from the National Archive of
Uzbekistan.
Keywords:
Economy, colonialism, coin, ruble, kerenka, sovznak, Turkbon, penzenka.
Introduction:
The economy is considered one of the
key components of both state and societal life, and the
study of its issues holds significant importance.
Specifically, conducting a comprehensive scientific
analysis of the economic history of the late 19th and
early 20th centuries is one of the pressing tasks. This
article provides a thorough examination of the financial
policies implemented in the Turkestan region during
the Russian empire's colonial period, including the
Turkestan general governorship (prior to the
establishment of the Turkestan ASSR on April 30, 1918),
the Emirate of Bukhara, and the Khiva khanate (until
1920). It highlights the effects, results, and
consequences of these policies on the region's
economy, based on both Russian and local sources.
During the period of the Russian empire’s colonial rule,
numerous sources shed light on the financial system of
the Turkestan region and its condition. However, the
majority of the opinions and considerations put forth in
historical (A. Gurtovenko, 1955), economic (A. Aminov,
1959), and legal studies (T. Krasilnikova, 2001), which
have introduced these sources into academic
discourse, interpret the economic life and changes in
the financial and banking system in ways that suggest
these developments served as a driving force for the
region's growth. They also argue that new forms of
trade
relations
were
established,
creating
conveniences for the population and, consequently,
fostering the emergence of traders and industrialists. It
is difficult to fully agree with many of these viewpoints.
For example, Russian researcher R. Yu. Pochekaev, in
his studies analyzing the legal aspects of relations
between the Russian empire and Central Asian states
from the early 18th century to 1917, concludes the
following regarding the financial measures and
monetary relations employed by the imperial
government in the emirate of Bukhara and the Khiva
khanate: “The conquest of the fina
ncially powerful
Khanates of Bukhara and Khiva in Central Asia and the
strengthening of control through the customs system is
a historical result. However, these two states had to
completely abandon their own national coins, with the
ruble becoming the main currency in circulation. The
reason why these reforms were not fully implemented
by 1917 is not due to the imperial government’s failure
to consider the national and regional characteristics of
these territories. Rather, as emphasized by R. Yu.
Pochekaev (2020), it was because the imperial
government was reluctant to take more active steps in
reforming monetary relations, taking into account the
stance of the authorities in Bukhara and Khiva on this
issue”.
METHODS
This article analyzes the emergence of commercial
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American Journal Of Social Sciences And Humanity Research (ISSN: 2771-2141)
issues from the perspective of modernist thought at the
close of the 19th century and the dawn of the 20th
century, employing a comparative historical approach.
The economic issues of the period under investigation,
along with the deficiencies encountered in various
spheres of social and cultural life, were critically
examined in national press publications. These
discussions addressed matters related to economic and
social development. In particular, the newspapers of
the progressive intellectuals of Turkestan, including
Uluğ Turkiston, Sadoyi Turkiston, Sadoyi Fergana,
Tarjimon, and Kengash, as well as the journal Oyina,
alongside official Russian publications such as
Turkestanskie Vedomosti, Turkiston Viloyati Gazeti,
and Tujjor, highlighted the factors contributing to the
financial ruin of the population. These sources also
delved into issues such as economic illiteracy, banking
practices, the pawnshop system, and the consequences
of small-scale credit offered by Russian commercial
societies.
In the works of Soviet-era scholars such as N. Paskutsky,
L. Yurovsky, M. Tursunov, A. Melnikov, V. Vekselman,
M. Vyatkin, Z. Hakimov, and B. Iskandarov, the
monetary policies implemented by the Soviet
government in the Turkestan region, as well as the
analysis of monetary relations in the Bukhara and Khiva
khanates over the years, are systematically examined.
These studies address the impact of the Russian ruble
on both coinage and paper currency. However, these
research efforts often present a one-dimensional
perspective, suggesting that the influx of foreign capital
into the region accelerated economic development, led
to the formation of new entrepreneurs influenced by
the practices of Russian merchants and firms, and
facilitated the establishment of factories and banks,
thereby fostering the expansion of economic activities.
RESULTS AND DISCUSSION
The national monetary system in Turkestan existed
from ancient times until the first quarter of the 20th
century, specifically in the Turkestan general
governorship until 1890, and in the tmirate of Bukhara
and the Khiva khanate until 1920. Over the course of
many centuries, the development of commodity-
money relations in these regions led to the emergence
of a complex form of trimetalism.
The history of the monetary system in the Turkestan
region during the period of Russian imperial colonial
rule can be studied in three phases. The first phase
lasted from the beginning of the Russian invasion until
the 1890s, covering the period when the monetary
systems of three independent states existed and
adapted to the new political reality. This period is
characterized by the competition between the coins of
Kokand, Bukhara, and Khiva and the Russian ruble. In
Bukhara and Khiva, the monetary system was officially
based on gold, silver, and copper coins, while in the
Kokand Khanate, silver and copper coins were
predominantly in circulation for daily use (such as for
trade and various collections). In major commercial
transactions, such as land sales and large-scale
commodity exchanges, silver and gold coins were used.
With the dissolution of the Kokand khanate, the
Russian ruble began to dominate in the Fergana valley.
The second phase of the monetary system's
development in Turkestan was marked by Russia's
policy of consolidating control through the unification
of the monetary system. This period represents a
crucial stage in the history of the interactions between
the monetary systems of Bukhara, Khorezm, and
Russia. From the early 1890s until 1917, the Russian
imperial government pursued a policy aimed at
abolishing the local currencies of Bukhara and Khiva,
while introducing Russian currency, including credit
notes, into circulation (N. Paskutsky, pp. 87-107).
The third phase, spanning from 1917 to 1922, was
marked by the introduction of various monetary
systems, beginning with the circulation of independent
paper currency (1917-1920). In the early years of Soviet
rule, which was forcibly established by the Bolsheviks,
there was no unified monetary system between
Russia's central regions and the Turkestan region until
1920. During this period, a variety of currencies were in
circulation across the country. Simultaneously, Russian
monetary units such as the Nikolay, Kerensky, Sovznak,
Turkestan ruble, and Turkbon, Penzonka were also
circulating (M. Tursunov, p. 104). Despite the
introduction of the first paper money issued by the
Amir’s
government
into
Bukhara’s
monetary
circulation in 1918, both local coins and Russian
banknotes from the imperial era, including the Nikolay
and Kerensky notes, continued to be used in the
market.
It is appropriate to examine the monetary relations in
Turkestan separately, starting from the second half of
the 19th century. The monetary reform in the region
was carried out in different stages across various
territories. In the markets of the khanates, gold (tilla),
silver (tanga), and copper (pul) coins were
predominantly in circulation. One of the difficulties in
Turkestan’s foreign trade was the need to conduct
transactions with neighboring states using their
respective currencies. Specifically, it is noted that trade
with Iran was conducted using krans, with the Bukhara
and Khiva khanates using their coins, and with
Afghanistan, trade was carried out using Iranian,
Afghan, and Bukhara currencies, while trade with
Kashgar was conducted using Chinese copper coins (F.
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American Journal Of Social Sciences And Humanity Research (ISSN: 2771-2141)
Amonova, p. 1051).
During this period, the exchange rates were as follows:
the Kokand tilla was valued at 18 tangas, the Bukhara
tilla at 24-28 tangas, the small Khiva tilla at 8 tangas,
and the large Khiva tilla at 18 tangas (Yuzhin Skayler, p.
156).
In 1917, state credit notes of Kerensky, with
denominations of 250 and 1,000 rubles, were
introduced into circulation (A. Melnikova, p. 6). In 1919,
an effort was made to unify the currencies of the RSFSR
and Turkestan. In this process, 10 rubles of Turkestan
were equated to 1 ruble of the RSFSR. However, this
unification process did not occur in Bukhara and Khiva
(MA, p. 10).
During this period, the value of the Khiva silver coin was
higher than the Russian ruble, amounting to 17.28
kopecks. The silver content of the Khiva coin was 993
parts per thousand. The purity of Bukhara silver coins
was 959.5 parts per thousand (R. Pochekaev, p. 198).
In 1895, the Samarkand branch of the State Bank, along
with its branches and cash offices in the Bukhara
Emirate and the Amu Darya region, set a fixed exchange
rate for Khiva silver coins, accepting one Bukhara or
Khiva coin at a rate of 12 kopecks. This policy resulted
in the devaluation of currency in Bukhara and Khiva,
causing a sharp decline in the economy. As a
consequence, the living standards of the population
significantly worsened (F. Amonova, p. 11).
In the Khiva Khanate, as in the Bukhara Emirate, gold,
silver, and copper coins were in circulation. The gold
coins were of two types: the “small tilla” (equivalent to
1 ruble and 80 kopecks) and the “large tilla” (equivalent
to 3 rubles and 60 kopecks). The silver coin was known
as the white tanga (valued at 20 kopecks), while the
copper coin was referred to as the "black tanga" (which
had a value of one-
sixth of the “white tanga”). In
addition, the Khanate used smaller units of currency,
such as the “shoyi”, “abbas shoyi” and “half shoyi” with
values ranging from 10 to 40 kopecks (M. Matkarimov,
S. Matkarimova, U. Bekmuhammad, p. 50).
In the Khiva khanate, local craftsmen minted silver
coins worth one million soms each year until the end of
the 19th century. Silver “tanga” coins were commonly
used in circulation throughout the Khanate. The use of
silver coins was more practical than gold or copper
coins, which contributed to their widespread adoption.
Following the conquest of the Khiva khanate by the
Russian empire, reforms were introduced to the
currency system. A system was established through
sarrofs to exchange gold, silver, and copper coins for
Russian paper currency, and vice versa. Beginning in
1880, Russian gold, silver, and copper coins began to
circulate in the markets of Khiva.
At the request of Russian merchants, the Russian
Ministry of Finance issued an order in 1893, stipulating
that the minting of coins in Khiva could only be carried
out with the approval of the imperial government
("Tarjimon" newspaper, 1893).
In 1897, Colonel A.S. Galkin, head of the Amu Darya
military administration, recommended setting the
value of the Khiva silver tanga between 14.3 and 14.8
kopecks. To facilitate this, it was planned to establish
new branches of the state bank in Chimboy and Khiva.
However, as there were no state bank branches in the
Khanate, it was proposed that the Amu Darya branch
provide the necessary quantity of Russian silver coins
for exchange (R. Pochekaev, p. 203). Starting in april
1898, the bank branches began accepting the Khiva
silver tanga at a rate of 14 kopecks per coin. By 1900,
the minting of coins within the Khanate was entirely
prohibited (Uzbekistan National Archives, pp. 24-25).
In July 1908, the Khan of khiva submitted a petition to
the Governor-general of Turkestan, requesting
permission to mint coins. The local population of Khiva
faced difficulties in conducting trade with Russian
coins, as prices were high and the value of the silver
tanga was low. This situation resulted in significant
economic losses for merchants, artisans, and peasants.
However, the imperial government did not grant the
Khan's request. As a result, the Khan began secretly
minting silver coins. The Amu Darya branch of the State
Bank also encountered challenges in regulating
currency circulation (R. Pochekaev, pp. 207-208). Even
Russian merchants resorted to conducting trade with
peasants and artisans using the locally minted coins. By
1914, Russian currency became the exclusive medium
of exchange in both domestic and foreign trade (F.
Amonova, p. 151).
In the period from 1918 to 1920, due to the political
situation in the Khiva Khanate, the official exchange
rate for bonds and notes from 1918 set the value of 1
Khiva tanga at 14 rubles, while the unofficial exchange
rate placed the value of 1 Khiva tanga at 25 rubles (M.
Tursunov, p. 95). During this time of political instability
and economic crisis, certain individuals in the Khiva
Khanate also minted their own coins.
During the period of resistance against the Soviet
regime in Turkestan, local leaders (qorboshi) pursued
an independent monetary policy. According to the
historian K. Razhabov, insurgents printed paper money
using special presses and circulated it (K. Razhabov, pp.
304-305). For instance, Musa Turkistaniy, a direct
witness to the events, later described how Parpi
qorboshi issued coins in his own name in early 1919 in
Kokand. To do this, he used a Soviet coin-printing press
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that had been brought to the Fergana Valley by K.
Osipov, the former military commissar of the Turkestan
Republic (Muhammad Musa Turkistaniy, p. 160).
Between 1918 and 1920, during the reign of Junayd
Khan, coins in five denominations - 1, 2.5, 5, and 15
tanga (made of copper) and silver khon-som - were
issued in Badirkent. The coins were inscribed with the
year of minting according to the Hijri calendar, along
with the word Khorezm, and featured Junayd Khan's
emblem, which included a crescent moon surrounded
by sun rays (2001, pp. 76-79).
These copper and silver coins became the main
medium of exchange in the Khiva Khanate and
continued to circulate in the Khorezm region during the
early Soviet period in 1920 and later. The local
population referred to these coins as “Junayd Khan”
coins.
CONCLUSION
In conclusion, the severe currency shortage that
emerged in mid-1918 was caused by several key
factors. First, the industrial enterprises in the Turkestan
region, which were mainly focused on raw material
processing, were nationalized by the Bolsheviks under
the guise of nationalization. As a result, these industries
were unable to meet the increasing material needs of
the Turkestan ASSR. Second, the formation of red Army
fronts in Orenburg, Turkestan, Transcaspian, and
Semirechye disrupted economic ties between the
region and the central parts of the RSFSR. This led to a
sharp decline in cotton exports from Turkestan and
resulted in significant stockpiles of unsold cotton,
especially in cotton-cleaning factories. At the same
time, the supply of grain (primarily wheat) and
industrial goods from the central RSFSR to Turkestan
virtually stopped, causing a dramatic rise in prices.
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