Laari Denomination Guide: Monetary System of Maldives

Illustrated Specimen Details: Laari Coin

Example Specimen: 10 Laari, 1960 (Sultanate of the Maldives)

Historical Context: Issued during the reign of Muhammad Fareed Didi (1954-1968), the final Sultan of the Maldives before the transition to a Republic. The date on the coin is dual-dated as 1960 in the Gregorian calendar and AH 1379 in the Islamic calendar. The legend is written in two scripts: the official Maldivian language (Dhivehi) and Arabic (Naskh script), which is highly regarded for its legibility and historical use in religious and administrative documentation.

Design Details: The reverse features the denomination 10 ލާރި (10 laari) and the date 1960 - ١٣٧٩. The obverse displays the emblem of the Maldives, consisting of a coconut palm, a crescent, and two criss-crossing national flags. Encircling the emblem is the traditional title of the state in Arabic: الدولة المحلديبية (State of the Mahal Dibiyat). The coin is distinguished by its unique scalloped shape with 12 distinct notches.

1. MALDIVES (1960-...) — Sultanate of the Maldives and Republic of Maldives: laari = 1/100 rufiyaa.

History and Linguistic Origin of the Laari

About the name of the coin "laari" (Dhivehi "ލާރި"): The modern laari derives its name from the medieval "larin". The larin was a unique form of currency — a piece of silver wire, roughly 10 cm long and 2 mm in diameter, bent into a hook shape (often resembling the letters C, J, or S) and stamped with the names of rulers or verses from the Quran. Circulating widely across the Indian Ocean (including the Persian Gulf, Bengal, and Ceylon) during the 16th-17th centuries, it is believed to have originated in the Persian city of Lar.

Monetary Role and System Structure

The laari serves as the fractional currency unit of the Maldives, representing exactly 1/100 of a Maldivian rufiyaa. It remains the smallest unit of account in the Maldivian monetary system, standardized during the major reforms that took place during the late Sultanate and the subsequent transition to the Republic.

Historical and Modern Significance

Following the modern monetary reforms, the laari supported the Maldives' shift away from old trade-based systems and foreign currencies toward a unified national currency structure. While the 10 laari coin minted in 1960 was originally nickel-brass, subsequent issues, such as the 1979 series, were struck in aluminum to maintain practicality. Although inflation has led to a decline in the frequency of physical laari coins in daily cash transactions, the denomination persists as an essential official subdivision used in pricing, banking, and accounting throughout the islands.