Sher Shah brought about a major improvement in the economy of the country with his currency and tariff reforms. At that time, the currency of the country was in an extremely poor condition since there were not many coins in circulation. Moreover, due to the reduction of the proportions of the noble metals in the coins, their intrinsic values were much less than the face values, nor was there any fixed ratio of their gold and silver content.

Sher Shah’s measures to remodel the currency consisted of abolishing mixed metal coins altogether and intro­duction of coins of unalloyed gold, silver and copper of fixed standards. The gold coins issued by him were of 168.5, 167 and 164 grains and his silver rupiah of 180 grains had 175 grains of pure silver in it. There were also a large number of new copper coins which were subsequently known as dams.

The silver rupia and the copper dam were also available as halves, quarters, one-eighths and one-sixteenths. He fixed the ratios between the silver coins and various gold coins, and the rate of exchange between the copper dams and the silver rupia was 64 to 1, a ratio that was maintained upto 1947 and beyond, when the lowly paisa was replaced by the decimal paise.

It appears during the Mughal period his rupias were used without the inscriptions.

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As regards tariff, Sher Shah abolished all those duties which were levied on commodities and articles of trade at various places of his empire. During hjs reign, trade-tax on commodities were charged in two places; firstly, at the point of entry and, secondly, at the place where the items were sold. This simplified procedure was of considerable help to trade and commerce.