In 1329 30 Muhammad bin Tughlaq introduced a token copper currency in place of silver but banned it ...........

Ancient and Medival History Sultanate Period

In 1329-30 Muhammad bin Tughlaq introduced a token copper currency in place of silver, but banned it later and promised to exchange silver coins for these copper coins. This was done because

Copper was scarce in the empire, but had huge demand in the world.

Token currency was trampled and disrespected by people.

Goldsmiths began to forge the token coins on a large scale.

Treasury became empty with issue of token coins.

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Explanation:

There was a shortage of silver through out the world in the fourteenth century.Kublai Khan issued paper money in China. In the same manner, Muhammad bin Tughlaq issued copper coins at par with the value of the silver tanka coins.But he was not able to prevent forging the new coins. The goldsmiths began to forge the token coins on a large scale. Soon the new coins were not accepted in the markets due to its widescale duplication and thus credibility.Finally, Muhammad bin Tughlaq stopped the circulation of token currency and promised to exchange silver coins for the copper coins.Many people exchanged the new coins but the treasury became empty.According the Barani, the heap of copper coins remained lying on roadside in Tughlaqabad.