Northern Tokharistan  

On the territory of Northern Tokharistan a number of independent principalities were
located, such as Chaghanian, Termez principality, Cobadian, Huttalyan and others.
The number of them, according to Chinese sources, at various times was different.
The population of Northern Tokharistan was divided into settled (agricultural) and
nomadic (pastoral). Widely developed were trade and various crafts. Together with other regions of Central
Asia, Tokharistan was a part of states of Kushan (1st century. B.C. – 4th century A.D.),
Hephthalites (5th-6th centuries), Turkic Kaganate (6th-7th centuries), and in the 7th
century it was conquered by the Arabs. As the basis of monetary circulation of early Medieval Northern Tokharistan were coins of the Sassanian Iran, as well as local imitations of the Sassanid drachms. Characteristic to coins circulated on the territory of Tokharistan are distinctive counterstamps – portraits, tamghas and legends. In Cobadian, as a basis of coins-imitations had been taken the drachms of the Sassanian king Peroz, and in Chaghanian –
coins of the Sasanian king Khosrow I. Beginning with the second half of 6th century, there was a gradual rise of the
Chaghanian dynasties. In Chaghanian, a new independent – Chaghankhudates type of
coins had developed. During this period Chaghanian had played a considerable political
and economic role. It had become one of the strongest and influential possessions of
Northern Tokharistan. Local rulers – Chaghankhudates had established diplomatic, dynastic and religious ties with
a number of states. The Arab conquest of Central Asia has signaled the start to a new
historical period. Chaghanian was drawn into the sphere of influence of a new culture
and religion, although thanks to flexible policies advanced by the Chaghankhudates, they
were able to maintain power for almost another one hundred years, until the last quarter
of 8th century, at which time the Arabs had abolished their dynasty.