Hans Sanders (NL)
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Early History

Although coins were already widely used in India and other native states there were no coins circulated in Tibet. During the early monarchy, most purchases in Tibet were made by means of barter. Barley of grain and wool was always a popular currency item. Also shells, presumably cowrie shells, were used for trade, valued by number and not by weight. Only in and near  the urban communities, mostly grow up around the great monasteries, was any need for a monetary system for exchange purposes. The barter system probably continued unchanged until the 13 Th century, when contact between Tibet and China increased during the Yan Dynasty.

During this period, the Mongols did sent large donations of silver ingots, bullets or sycees to the Tibetan monasteries for religious purpose. Because silver was not mined in Tibet this was probably the first time silver reached Tibet in large quantity. The above mentioned ingots and sycees were too large in weight and currency for everyday use and although small change could obtained by cutting them, they were mainly used for large scale transactions and as a store of wealth.

Akbar

In the 16 Th century Akbar conquered Northern India. His empire became prosperous and rich in silver thanks to the Portuguese who brought large quantities of silver from the newly discovered mines in Mexico to India in trade for spices. Akbar used this silver to trade with his neighbour countries, including Tibet. In contrast to the Chinese currency systems, silver in India traditionally circulated as coins, with a value guaranteed by the issuing authority.

It did not take long before some of the more powerful border states realized the advantages of striking coins of their own.  At he end of the 16 Th century states as Nepal and Cooch Behar set op their own mints. Cooch Behar, in particular, struck large numbers of fine silver coins in the late 16 Th century.

       
Rupee of Cooch Behar
Nara Narayan 1555-1567 (MN 2442)

Cooch Behar seemed to have been the main beneficiary of trans Himalayan trade at that time. By striking coins of their own, Cooch Behar and others were able to ensure that traders could not take the silver (coins) back to India without loss, since the local coins were not accepted at  value in the Moghul territories. In Tibet, however, where there was no indigenous conage, all silver coins, whether Moghul, Nepalese or from Cooch behar, were valued on an equal basis. The Tibetan found the silver coins very convenient as currency and gave all different coins a standard fixed value, roughly equal to their weight in silver. Because the content of silver of the coins of Cooch Behar  and Nepal are less then the Indian coins and also the Tibetan fixed value, it was worthwhile for Cooch behar and the other border states to pay for Tibetan exports with silver coins, since they were then able to make profit from the degraded silver-alloy of their coins.

In about 1590, Nepal succeeded in securing the rights for traders and artisans from Nepal to reside in Lhasa. These traders were able to arrange the direct  bulk trade through Nepal in preference to Cooch Behar which had no local presence in Lhasa. From then on the power of Cooch Behar waned.