Before 1891, silver rupees circulated with copper falus and gold mohur.

The three metals had no fixed exchange rate between them, with different regions issuing their own coins.

That year, a new currency was introduced, based on the Kabuli rupee and replacing both that and its Kandahari variant.

[2] The rupee itself was first issued by Sher Shah Suri during his rule of Sur Empire in the sixteenth century; India and Pakistan still use their variant of the rupee since their independence from 1947.

In 1919 following Amanullah Khan's accession to the throne, Treasury notes were introduced for the first time in denominations of Re.