From ‘Saigon Banknotes’ to ‘Indochinese Piastre’: The Expansion of Monetary Power in Tandem with Military Conquest (1882-1895)

Abstract

This paper examines the symbiotic relationship between monetary power and the military expansion of French colonialism in Vietnam from 1882 to 1895. By analyzing archival records and classic economic history literature, the study clarifies the strategic transformation of the Banque de l'Indochine from a local financial institution in Cochinchina into a federal-wide monetary authority. The research demonstrates that during the conquest of Tonkin and Annam, the Banque de l'Indochine functioned as a crucial "financial backer" and "strategic sponsor," enabling the French expeditionary forces to resolve local logistics and liquidity challenges. The imposition of the Indochinese Piastre to replace "Saigon Banknotes" and indigenous currencies was not merely an economic objective but a tool for asserting colonial sovereignty. The findings confirm that the expansion of the Banque de l'Indochine's branch network was intrinsically linked to the consolidation of French political power, laying the groundwork for subsequent large-scale colonial exploitation. This article contributes a multi-dimensional perspective on the military-financial complex within the history of French colonialism in Indochina.