Yuan Dynasty, the Mongol Dynasty
Ilkhanate State of Mongol Empire
Yi Guo Yan Chang, 10 Cash Coin, 1220–1357 AD
伊國延長
 
10 Cash Coin, 1220–1357 AD
Weight: 17 grams Size: 41 mm
Value: Bronze 10 Cash
Ilkhanate 伊儿汗国
Introduction of Chinese paper money possibley also Chinese coins as Fractional currency
 
The Ilkhanate, also spelled Il-khanate (Persian: ایلخانان‎, Ilkhanan; Mongolian: Хүлэгийн улс, Hulagu-yn Ulus), was a breakaway state of the Mongol Empire, which was ruled by the Mongol House of Hulagu. It was established in the 13th century and was based primarily in Iran as well as neighboring territories, such as present-day Azerbaijan, and the central and eastern parts of present-day Turkey. The Ilkhanate was based, originally, on Genghis Khan's campaigns in the Khwarazmian Empire in 1219–1224, and was founded by Genghis's grandson, Hulagu Khan. In its fullest extent, the state expanded into territories which today comprise most of Iran, Iraq,Turkmenistan, Armenia, Azerbaijan, Georgia, Turkey, western Afghanistanand southwestern Pakistan. Later Ilkhanate rulers, beginning with Ghazan in 1295, would covert to Islam.
In 1294, Gaykhatu wanted to replenish his treasury emptied by royal extravagance and a great cattle plague. In response, hisvizier Ahmed al-Khalidi proposed the introduction of a recent Chinese invention called Chao (paper money). Gaykhatu agreed and called for Kublai Khan's ambassador Bolad in Tabriz. After the ambassador showed how the system worked, Gaykhatu printed banknotes which imitated the Chinese ones so closely that they even had Chinese words printed on them. The Muslimconfession of faith was printed on the banknotes to placate local sentiment.
The plan was to get his subjects to use only paper money, and allow Gaykhatu to control the treasury. The experiment was a complete failure, as the people and merchants refused to accept the banknotes. Soon, bazaar riots broke out, economic activities came to a standstill, and the Persian historian Rashid ud-din speaks even of "'the ruin of Basra' which ensued upon the emission of the new money". Gaykhatu had no choice but to withdraw the use of paper money.
He was assassinated shortly after that, strangled by a bowstring so as to avoid bloodshed. His cousin Baydu, another puppet placed by Ta'achar, succeeded Gaykhatu but only lasted a few months before himself being assassinated. An alternative story of Gaykhatu's death claims Baydu made war on him because of his introduction of paper money and subsequently killed him in battle.

The Yuan Dynasty (Chinese: 元朝; pinyin: Yuáncháo; Mongolian: Dai Ön Ulus/Дай Юан Улс), or Great Yuan Empire (simplified Chinese: 大元国; traditional Chinese: 大元國; pinyin: Dà Yuán Diguó) was both the continuation of the Mongol Empire and the Mongol founded historical state in Mongolia and China[1], lasting officially from 1271[2] to 1368[3]. In Chinese history, the Yuan Dynasty followed the Song Dynasty and preceded the Ming Dynasty. Although the dynasty was established by Kublai Khan, he had his grandfather Genghis Khan placed on the official record as the founder of the dynasty or Taizu (Chinese: 太祖). The rulers of the Yuan Dynasty became Emperor of China by 1279, though Kublai Khan had also claimed the title of Great Khan, i.e. supremacy over the other Mongol khanates (Chagatai Khanate, Golden Horde, Ilkhanate); however this claim was truly recognized by the Il-Khanids, who were nevertheless essentially self-governing. Although later emperors of the Yuan Dynasty were recognized by the three virtually independent western khanates as their nominal suzerains, they each continued their own separate developments. But the Mongol Empire as a whole remained strong and united. The Yuan is sometimes referred to as the Empire of the Great Khan. The Mongol Emperors of the Yuan held the title of Great Khan of all Mongol Khanates.
 
Founding of the Dynasty
 
Kublai Khan, Genghis Khan's grandson and founder of the Yuan Dynasty
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