During most of the Roman Imperial period, Alexandria vied with Antioch for the position of Second City of the empire, surpassed only by Rome in importance. The province of Egypt had a privileged position relative to Rome, by virtue of its great wealth and historical importance; the unique circumstances of its acquisition by Octavian from Antony and Cleopatra; and, most importantly, because of its role as a food supplier to Rome. Since the time of Octavian, Egypt had been administered as a closed economic zone, minting its own coins instead of relying on imperial coinage. As part of his coinage reform, Diocletian ended this practice; henceforth, Egypt would use the same coins and monetary system as the rest of the empire. The first such coins were struck in 294 on the same model as the coins struck at all the other mints; that is, they were struck jointly for all the tetrachs, using the Genio Populi Romani reverse to emphasize unity with the rest of the empire.

In 295, one of Diocletian's generals named Domitius Domitianus seized control of the city (and the mint), perhaps reflecting local dissatisfaction with the loss of Egypt's—and Alexandria's—special status. However, Domitianus continued to strike coins on Diocletian's model, and even struck coins in the names of other tetrarchs, including Diocletian himself. This was designed to create the impression that he was just one more member of the imperial college, rather than supplanting all of the other rulers. Nonetheless, a very displeased Diocletian promptly dispatched of Domitianus and reasserted control of the city, and coins in Domitianus' name ceased.

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