With the establishment of the Umayyad Caliphate following the martyrdom of Imam Ali (661 AD), the capital of the Caliphate was moved to Baghdad, while the coinage continued to follow local patterns, with Arab-Sasanian coins prevailing as the currency of the former Sasanian territories, and Arab-Byzantine coins gaining prominence in the former Byzantine lands. Muawiyya, the first Umayyad Caliph, was followed by his son Yazid I and grandson Muawiyya II, whose rule further established the Umayyad power and included the earliest establishment of the Islamic imperial administration. This, however, was faced with a great dilemma, the management of the taxation and the divan system established under the earlier caliphs (and indeed the prophet himself) (Source: Iranologie).
Muslim Conquerors Use Sassanid Coinage
