Economy of Ancient Greece - Currency

Currency

Coinage probably began in Lydia around 600 BC, and circulated in the cities of Asia Minor under its control; early electrum coins have been found at the Temple of Diana at Ephesus. The technique of minting coins arrived in mainland Greece around 550 BC, beginning with coastal trading cities like Aegina and Athens. Their use spread, and the city-states quickly secured a monopoly on their creation. The very first coins were made from electrum (an alloy of gold and silver), followed by pure silver, the most commonly found valuable metal in the region. The mines of the Pangaeon hills allowed the cities of Thrace and Macedon to mint a large quantity of coins. Laurium's silver mines provided the raw materials for the "Athenian owls", the most famous coins of the ancient Greek world. Less-valuable bronze coins appeared at the end of the 5th century.

Coins played several roles in the Greek world. They provided a medium of exchange, mostly used by city-states to hire mercenaries and compensate citizens. They were a source of revenue: foreigners had to change their money into the local currency at an exchange rate favorable to the State. They served as a mobile form of metal resources, which explains discoveries of Athenian coins with high levels of silver at great distances from their home city. Finally, the minting of coins lent an air of undeniable prestige to any Greek city or city state.