The currency system at the time of his accession to the throne was in a hopeless condition. Debasing of the coins was common. There was no fixed ratio between the coins of various metals. Coins of various Governments were allowed to circulate at the same time and they created a lot of confusion. Sher Shah introduced a new coin called Dam.
He also abolished the old and mixed metal currency. The names on the coins were given in Devanagari script. Gold coins were also introduced. The ratio of exchange between the Dam and rupee was fixed at 64 to 1.
Trade :
Sher Shah abolished the various duties which were levied at the frontiers of every province. The object was to facilitate trade in the country. Only two duties were allowed. The first duty was levied when the goods were brought into the country and the second was levied when the goods were sold. All internal customs were abolished.