An Overview of the Coins and Banknotes of Timor Leste

The monetary history of Timor-Leste reflects the turbulent political history of this young nation. Timor's financial system has had several distinct phases—from pre-colonial trade networks through Portuguese colonisation, Indonesian rule, and finally to independence. 

Phase 1: The Pre-Colonial Era (Prior to1515)

Before the arrival of the Portuguese, Timor was integrated into extensive Asian trading networks from at least the 14th century. The island's economy was centred on sandalwood exports to Chinese, Indian, and Javanese traders. The island was organised into small chiefdoms and princedoms, most notably the Wehali kingdom in central Timor. 

There was no centralised monetary system during this period. The Timorese economy operated primarily through barter, with foreign traders bringing metal goods, rice, fine textiles, and coins in exchange for sandalwood, honey, beeswax, and slaves.

Phase 2: Portuguese Colonial Rule (1702-1975)

Early Portuguese Period (1702-1945)

Portugal established the colony of Portuguese Timor in 1702, though Portuguese presence on the island dated back to the early 16th century. Initially, the colony was administered jointly with Macau until 1896, when Portuguese Timor became autonomous. 

The Portuguese presence was initially limited, focused on the profitable sandalwood trade and later coffee production. The Banco Nacional Ultramarino (BNU), Portugal's overseas bank, established a representative in East Timor in 1902 and opened a full branch in Dili in 1912. The BNU assumed responsibility for issuing currency for the colony.

Currency System Used

1702-1894: Portuguese mil reis circulated alongside various foreign coins, including Spanish 8 reales, Chinese dollars, British trade dollars, and Netherlands East Indies gulden
1894-1942: Portuguese Timor pataca introduced as unit of account, based on the Mexican silver dollar
1942-1945: Japanese occupation - Netherlands Indies gulden (1942-1943), then roepiah (1943-1945)

Coin Issued (1900):

1 Pataca (countermarked, ND c.1900) - Mexican dollar with "Christo Cross" countermark
Metal: Silver (.903) | Weight: 27.07g | Diameter: 39mm | KM# 8, Gomes# C1 01.0x
Rarity: Extremely Rare

This is the only coin specifically authorised for use in Portuguese Timor before 1945. Mexican "cross and rays" silver 8 reales coins that had been examined by colonial authorities and found to meet weight and purity standards were countermarked with the "Christo Cross" countermark. Only a very small portion of the Mexican silver coins that were used in the Portuguese Timor era featured this countermark, as they were applied in 1900 only.

Notes Issued

Series 1910 (issued 1912-1922) Issued by Banco Nacional Ultramarino:
1 pataca (P# 1) | 5 patacas (P# 2) | 10 patacas (P# 3) | 20 patacas (P# 4)

Series 1915-1940 (Macau Overprints):
These emergency issues demonstrate the close administrative ties between Macau and Portuguese Timor. Macau notes overstamped "PAGAVEL EM TIMOR" or "PAGAVEL EM DILLY-TIMOR": 5, 10, 50 avos | 5, 25, 100 patacas

Notes Used During Japanese Occupation

Japanese invasion money was not specifically issued for Timor but was used throughout the Dutch East Indies.
Japanese Invasion Money - Netherlands Indies (1942 - 1943)
Japanese Invasion Money - Roepiah notes (1943-1945)

2B. Portuguese Timor Modern Coinage Era (1945-1975)

After World War II, Portugal reoccupied East Timor and undertook significant currency reforms: the pataca was reintroduced in 1945 and was then replaced by the escudo in 1958, mirroring monetary reforms in metropolitan Portugal. For the first time, substantial coinage was struck specifically for Portuguese Timor.

1945, 1948 and 1951 - 10 avos
1945 - 20 avos
1945, 1948 and 1951 - 50 avos
1958: 10 centavos; 30 centavos; 60 centavos; 1 escudo; 3 escudos and 6 escudos
1970: 20 centavos; 50 centavos and 10 escudos.

Notes Issued - Pataca Era (1945-1958)

1945: Reoccupation Series (Macau Overprints): 5, 25, 100 patacas
1945: "Traditional Huts" Series: 1 pataca, 5 patacas, 10 patacas, 20 patacas and 25 patacas
1948: 20 avos, 5 avos, 10 avos and 50 avos

These latter notes feature traditional Timorese architecture and local scenes, marking them as uniquely Timorese rather than generic Portuguese colonial issues.

Notes Issued by Banco Nacional Ultramarino - Escudo Era (1958-1975)

20 escudos - 1967
50 escudos - 1959, 1963, 1967
100 escudos - 1959, 1963, 1968
500 escudos - 1963
1000 escudos - 1963

Escudo notes featured more sophisticated security features and portrayed Portuguese colonial themes alongside Timorese imagery.

Phase 3: Indonesian Rule (1975-1999)

East Timor declared independence from Portugal on November 28, 1975. Nine days later, on December 7, 1975, Indonesia invaded and subsequently declared East Timor as its 27th province (Timor Timur) on July 17, 1976. Indonesian currency immediately replaced Portuguese issues. The period ended with a UN-sponsored referendum in 1999, leading to Indonesian withdrawal and UN transitional administration. No coins or banknotes were specifically issued for East Timor during this period.

Phase 4: Independence (2000-Present)

Following the Indonesian withdrawal in 1999, East Timor came under United Nations administration (UNTAET - United Nations Transitional Administration in East Timor). On January 24, 2000, UNTAET Regulation 2000/7 officially adopted the United States dollar as legal tender for all official transactions. Full independence was achieved on May 20, 2002, making Timor-Leste the first new sovereign state of the 21st century. The new nation chose to continue using the US dollar rather than creating its own currency, while supplementing US coins with locally-minted centavo coins beginning in 2003.

Timor-Leste centavo coins were introduced in 2003 to supplement US currency. No Timorese banknotes have been issued as of 2025.

All coins are minted by Imprensa Nacional-Casa da Moeda, Lisbon, Portugal (Portugal's national mint), maintaining a historical connection to Portuguese rule. Coins are issued by Banco Central de Timor-Leste (BCTL).

Introduced from November 10th, 2003, these denominations feature local flora, fauna, and traditional symbols: 1 centavo to 200 centavos

Notes Circulating - United States Dollar Banknotes:

All standard US denominations circulate: $1, $5, $10, $20, $50, $100, although "old" US banknotes (issued before 2009) are not accepted in Timor-Leste. Timor-Leste has not issued its own banknotes; whether Timorese banknotes will be issued in future is not clear.

Conclusion: Building a Timor-Leste Collection

The monetary history of Timor-Leste offers collectors a wide range of opportunities, from extremely rare Portuguese colonial issues to readily available modern centavos. 

Beyond their numismatic value, Timorese coins and notes tell the story of a nation's struggle for self-determination. Each piece represents a chapter in the journey from colonial trade post through occupation to independence. For collectors, these items preserve tangible connections to one of the 21st century's youngest nations and its remarkable history.