Alexandrian Tetradrachm

• The Alexandrian Tetradrachm was introduced to Egypt after Alexander the Great took Egypt in 332 BCE.
• Prior to this, the Egyptians had no coinage but used the barter system to exchange Goods and Services.

Alexandrian Tetradrachm under the Ptolemies

• The Alexandrian Tetradrachm was a silver coin. Until circa 50 BCE, the Ptolemies struck the Alexandrian Tetradrachm from fine silver.
• However, under Queen Cleopatra VII, the Tetradrachm was debased to only 25% silver content.

The Sealed Currency System

• The Ptolemies operated the Alexandrian Tetradrachm in complete isolation to the outside world. The Romans continued this system after their conquest of Egypt.

• Features of the Ptolemaic Closed Currency System:
  • No Foreign Currency was allowed to enter Egypt.
  • No Egyptian Currency was allowed to leave Egypt. This is why the Roman Coins found in India (Pudukkottai Hoard) and China are Roman Gold and Silver Coins, and not Egyptian Tetradrachms.
  • Currency had to be exchanged at Egypt’s Borders by Foreign Travellers both entering and departing Egypt. The Exchange Rate was set by the Governor of Egypt.

• Effects of a closed Currency System:
  • The Government derived Revenues from the Currency Exchange, which helped reduce the costs of Government.
  • The money supply of Egypt could be tightly controlled which meant Prices remained stable, particularly of Grain. This helped prevent the Price and Wage inflation that from time to time affected the rest of the Roman Empire.
  • The need to mint new coins was reduced, because the Governor could recover the older Tetradrachms, that had a higher silver content.

Alexandrian Tetradrachm under the Romans

• From the reign of Augustus to the reign of Diocletian, the Alexandrian Tetradrachm formed the currency of Egypt between 30 BCE until 296 CE when production ceased. After 297 CE, the Mint at Alexandria produced Roman coins in the same way as all the other Provincial Mints.
• The Mint was at Alexandria. The coins were always dated to the year of the reigning Emperor, allowing scholars to date the periods of Rule of the less well known Emperors.
• It was the only silver currency used in commercial transactions. Roman Gold coins existed but were not used. Bronze coins of lower value were used only up until 180 CE.

Debasement of the Alexandrian Tetradrachm

• The Romans continued to use the coins issued under the Ptolemies, but continually debased the coins they themselves minted.
• No Tetradrachms were issued between 30 BCE and 20 CE. Augustus simply reused the existing Ptolemaic issue that was in circulation.
• Tiberius started to remint the Tetradrachm in 21 CE, and established the basis of using the same silver content as the Roman Denarius. These new Tetradrachms contained 50% silver with 50% base metal, usually copper. The alloy produced is usually described as a Billon Tetradrachm.
• Roman Issue of coins was intermittent during the first century CE, but later settled into production on an annual basis..
• By 296 CE, the Tetradrachm contained less than 1% silver.

Alexandria