History of Gold in Nepal: Coinage and Currency

Short answer: Nepal Rastra Bank's published currency history traces Nepalese coinage from the Lichhivi-period “manank” coins through the golden “asarfi,” then follows the move from metal currency to paper notes and wider rupee circulation. It is an institutional account of coinage and currency, not a complete history of gold jewellery, mining, or reserves.

Early Nepalese coinage

In the chapter “Currency Management,” Vishnu Nepal says the beginning of Nepal's monetary system may be traced to “manank” coins from the Lichhivi period. The chapter notes that those coins did not have a definite shape, weight, or size. It says copper coins with more definite shape, size, and weight began under King Mahendra Malla, while the first silver coins known as “daam” entered circulation during King Sadashivadeva's reign.

The same account links wider circulation of Nepalese coins to trade with Tibet during the Malla period. It says coin standardization began during the reign of Prithivi Narayan Shah; the golden “asarfi” later entered circulation during King Rana Bahadur Shah's reign. These points describe the sequence in the NRB chapter, not every coin issued in each period.

From metal coins to paper currency

The chapter places this history in a wider trade and currency context. It says Indian paper money began circulating in 1861 and that growing Indo-Nepal trade increased the use of Indian currency in Nepal. A mint at Sundhara was established in 1930 in an effort to increase Nepalese coin supply. The Sadar Mulukikhana began issuing Nepali paper notes in 1945.

Before Nepal Rastra Bank was established in 1956, the Sadar Mulukikhana handled Nepalese currency issuance and management on a small scale. The chapter describes a period when Nepali and Indian currencies circulated side by side. It says NRB was established on 26 April 1956 and began work to expand circulation of the Nepalese rupee. NRB says the Nepalese currency became the only legal currency across the Kingdom by 1967, after years of work to expand its circulation and exchange facilities.

What this history does—and does not—cover

The NRB chapter is useful for a documented outline of coinage and currency management. It does not establish the history of Nepal's gold deposits, river panning, all uses of gold ornaments, or present-day gold reserves. Those questions need separate archaeological, geological, cultural, or current institutional sources. This article stays with the monetary history covered by its cited source.

For today's benchmark, see GoldNepal's gold price page. To browse current GoldNepal design records, visit the gold coins category; a design record is not a confirmation of seller stock or final price.

Source

Nepal Rastra Bank, “Currency Management,” in Nepal Rastra Bank in Fifty Years, by Vishnu Nepal. The cited chapter describes its own historical account; it is not an archaeological catalogue or current market source.