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By: Riley
Background
During 750 C.E the Abbasids overthrew the Umayyads, who ruled before the Abbasids. The Abbasids were lead by Abu Muslim and succeeded in taking over the last Caliph (The Editors of Britannica Encyclopedia). This marked the beginning of a new dynasty and many improvements came along with the Abbasids. Credit and Banking was introduced during the time of the Abbasids, 750 C.E to 1258 C.E (Yalman), mainly to end confusion among the many forms of currency that were used (Islam). The coins that they used were called Dinars and banks set there values based off of their weight and what they were made of (Islam). Although they were not funded by the government banks and bank like activities were encouraged(Islam). Individual bankers were given control of the banks and were able to take on all of the tasks that were required to run the Banks (Islam). Banks could cash bills of exchange, hold a person's money until they needed it, and charge interest (Islam).
Impacts
Image 10- This map depicts the spread of Islam and its trade routes through Asia, Africa, and Europe.
Trade
Trade
Banks heavily influenced trade in the Abbasid Caliphate. Banks ended confusion with currency and made trade more efficient. Trade spread rapidly during the time of the Abbasids making bills of exchange very useful. The bills of exchange were known as "Suftajah" and could be cashed in distant cities (Islam). They carried large amounts of money and instead of having to carry all of ones money they could simply use suftajah to pay for goods such as silk, salt, gold, and spices (Islam).
Image 9- This is a picture of an Abbasid's coin that has verses from the Quran and an inscription represent the Tawhid.
Economy
Economy
Banks also had a heavy impact on the economy of the Abbasid Caliphate. The government heavily utilized the banks by taking out loans that could be used for the empire or during times of crisis. Bankers introduced interest and charged money from those who had money in their banks, this was typically set at 5% in cities like Baghdad (Islam). The economy also improved due to the increased efficiency in trade, causing the rapid spread and adoption of ideas from other regions.
Further Reading
Further Reading
R.H
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