Straits dollar
Locally issued coinages included the Kelantan and Trengganu keping, and the Penang dollar.
This pegging occurred when the Straits dollar reached the value of two shillings and four pence (2s 4d) against sterling.
The Government of Straits Settlements was first authorised to issue currency notes by Ordinance VIII of 1897 during Queen Victoria's reign, which came into operation on 31 August 1898.
All notes were freely exchangeable with the Mexican dollar or the various other silver coins that were legal tender in the Colony.
In 1903, a dollar-sized coin in silver was minted specially for the Straits Settlements, and this became the standard unit of value.
During the change over period, fear of a shortage of coin led to the introduction of the one-dollar note, fixed at an exchange rate against gold instead of silver.
To effect this, the British gold sovereign was for the first time declared legal tender, and the Straits dollar was given an arbitrary value of two shillings and four pence sterling.
This dollar note proved so popular that it was retained in all future issues, so that to a very large extent it replaced the need for the silver coin.
By the end of 1906, the currency circulation had risen to $21,866,142, while that of the private banks had fallen to $1,329,052 (20th Century Impressions of British Malaya p. 138).
The one-dollar notes, which were dated 1 September 1906, were printed by the London firm of Thomas de la Rue & Co. Ltd. A five-dollar and a ten-dollar note both dated 8 June 1909, were printed Thomas de la Rue & Co. Ltd.
The Chinese text on top of the banknote reads: 叻嶼呷國庫銀票, 叻嶼呷 is the abbreviation for the Straits Settlements (叻 = Singapore, 嶼 = Penang Island, 呷 = Malacca).
The Malay text is rendered in Jawi script at the bottom and three Straits Settlements are also explicitly given: Wang (واڠ) kertas (قرطاس, the Arabic spelling is used) ini kerajaan tiga (تيݢ) buah negeri iaitu Singapura, Pulau Pinang, dan Melaka mengaku pembayarannya.
During George V's reign the range of currency notes was extended up to one thousand dollars for the convenience of inter-bank clearing transactions.
23) of 1938, in George VI's reign, and ratified by the various states during 1939 and the Malayan dollar became legal tender in the Straits Settlements.
