About Old Currency Used in Spain
Spain was in the first wave of European Union countries to adopt the euro as its currency, on January 1, 1999. Prior to that the currency of Spain was the peseta, which provided the unification of the Spanish monetary system, according to Global Financial Data. Before the adoption of the peseta, the history of Spanish currency is one of struggles for reform and unification.
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Early History
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As early as the 5th century B.C.E., silver coins that were minted in Sicily, Italy and France circulated in Spain. By 350 B.C.E., coins were minted in Spain. Until the Arab invasion of Spain in 711-712, the Visigoths issued coins, after which copper fals, silver dirhems and gold dinars were minted in Spain, according to Global Financial Data.
Spanish Unification
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After the unification of Spain in 1492, the real became the principal unit of account, according to Financial Data. The Real was a silver coin struck in Spain in areas not conquered by the Moors, initially at Seville and Burgos by Pedro III, King of Castile (1350-1368), explains Albert Frey in "A Dictionary of Numismatic Names." The real was one eighth of a peso and divided into 34 maravedis, the unit of copper coinage. The peso was the Spanish equivalent of a dollar. The peso dura, worth 20 reales, was issued under Phillip III, by Joseph Napoleon from 1809 to 1812, and by Isabella II in 1835 and 1836.
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Reform
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A series of monetary reforms began in 1391, when 132 types of coins were in circulation. The reform of October 14, 1686 introduced the escudo, divisible into two pesos, 16 reales or 544 maravedis. The silver and copper real de vellon, distinguished from the silver real de plata, was also introduced. The escudo and its divisions were the principal coins in use in this period, according to Global Financial Data.
New Systems
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The Decree of Aranjuez on May 29, 1772 tried to unify the monetary systems of Spain based on the peso, equal to 10 reales de plata and 20 reales de vellon. The doubloon, a trade coin, was equal to two escudos. The 1772 reform failed to bring clarity, and on May 31, 1847 Isabella II initiated reform with the silver real as the basis. The escudo, equal to 100 silver reales, became the monetary unit of all Spanish colonies on June 26, 1864. Spanish currency was quoted in terms of the peso de la plata antigua, equal to 64/85 peso duros, until 1847, according to Global Financial Data.
Unified System
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On October 19, 1868, Spain joined the Latin Monetary Union and introduced the peseta, divisible into 100 centimos. Private banks continued to issue banknotes in escudos or reales de vellon until the Banco de Espana gained monopoly on note issue in 1874, according to Global Financial Data. The Spanish peseta ceased to be legal tender on February 28, 2002, replaced by the euro, equal to 166.386 pesetas. The Banco de Espana continues to exchange peseta notes and coins for an unlimited period, according to EU Business.
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References
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