casting out the money changers in
Herod's Temple , 1412. In ancient times in
Jerusalem, pilgrims visiting the
Jewish Temple on
Jewish Holy Days would change some of their money from the standard
Greek and
Roman currency for
Jewish and
Tyrian money, the latter two the only currencies accepted as payments inside the Temple. With this Temple money the pilgrim would purchase a sacrificial animal, usually a pigeon or a lamb, in preparation for the following day's events. During the
Middle Ages in
Europe, many cities and towns issued their own coins, often carrying the face of a ruler, such as the regional baron or bishop. When outsiders, especially traveling
merchants, visited towns for a market fair, it became necessary to exchange foreign coins to local ones at local money changers. Money changers would assess a foreign coin for its type,
wear and tear, and
validity, then accept it as deposit, recording its value in local
currency. The merchant could then withdraw the money in local currency to conduct trade or, more likely, keep it deposited: the money changer would act as a
clearing facility. As the size and operations of money changers grew they began to provide a lending facility, by adding the lending-fee to the foreign exchange rates. Later the
Knights Templar provided this service to pilgrims traveling to and from the
Holy Land. In the Middle East, money changers, known as
sarraf,
sayrafi,
jahbadh, or
hawaladars, played a pivotal role in the Islamic economy, particularly in adhering to
Sharia’s prohibition of
riba (interest). During the
Islamic Golden Age, they facilitated currency exchange in bustling trade hubs like Baghdad and Damascus, supporting long-distance commerce across the Muslim world. In the 20th century, as Islamic banking emerged, money changers adapted to stricter interest-free models, contributing to financial stability and ethical investments in Muslim-majority regions. ==See also==