The History of El Salvador Money

The currency system of El Salvador has undergone a metamorphosis from pre-Columbian days, when cocoa was the main unit of exchange. Today the U.S. dollar is in use.

Pre-Columbian

The first currency used by the people inhabiting the region now known as El Salvador was the cocoa bean. This extends up to the Mayan period.

Colonial Money

The first coins came from Spain. However, the macacos or morlacos were the coins that were primarily used. These were irregularly shaped pieces of silver from Peru or Mexico. They had the columns of Hercules engraved on them and the words "Plus Ultra." Farm tokens were also used. These were known as "fichas de finca." These were made out of brass and the design depended on the farm. They were used to pay farm workers and could be used in local stores.

Central American Federation

At the time of the Central American Federation the first coins were minted. Silver coins had an "R" engraved on them for "Real" and gold coins had an "E" on them for "Escudo."

Peso

In 1880, the peso was adopted as the unit of currency. The peso was made up of 10 reales.

Colón

To honor Christopher Columbus, or as he is known in Spanish, Cristóbal Colón, on the 400th anniversary of the discovery of America on October 1, 1892, the monetary unit was changed from the peso to the colón.

U.S. Dollar

January 2001, the process of dollarization occurred where the U.S. dollar became the currency of El Salvador. From 2001 until 2004, both the colón and the dollar were used. Now the U.S. dollar is the only currency.

References

• Banco Central de Resera de El Salvador