History of spanish currency

Spanish escudo

The first escudo(gold escudo) was a gold coin introduced in 1535/1537, with coins denominated in escudos issued until 1833. It was initially worth 16 reales. When different reales were introduced, the escudo became worth 16 reales de plata in 1642, then 16 reales de plata fuerte or 40 reales de vellón from 1737.spain_escudo_1607

The second escudo(silver escudo) was the currency of Spain between 1864 and 1869. It was subdivided into 100 céntimos de escudo. The escudo replaced the real at a rate of 10 reales = 1 escudo. It was itself replaced by the peseta, at a rate of 2½ pesetas = 1 escudo, when Spain joined the Latin Monetary Union. The later silver escudo was worth one quarter of the earlier, gold escudo.The peseta replaced the escudo

Spanish Peseta

Peseta was the currency of Spain between 1869 and 2002

The peseta was introduced in 1869 after Spain joined the Latin Monetary Union in 1868. The Spanish Law of June 26, 1864 decreed that in preparation for joining the Latin Monetary Union, the peseta became a subdivision of the peso with 1 peso duro = 5 pesetas. The peseta replaced the escudo at a rate of 5pesetas = 1 peso duro = 2 escudos.

The political turbulence of the early twentieth century and during the years after the World War I, caused the monetary union to break up, although it was not until 1927 that it officially ended.peseta-vuelve-Mugardospeset

In 1959, Spain became part of the Bretton Woods System, pegging the peseta at a value of 60 pesetas = 1 U.S. dollar. In 1967, the peseta followed the devaluation of the British pound, maintaining the exchange rate of 168 pesetas = 1 pound and establishing a new rate of 70 pesetas = 1 U.S. dollar.

The peseta was replaced by the euro in 2002, following the establishment of the euro in 1999. The exchange rate was 1 euro = 166.386 pesetas.

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