History

Currencies used in Spain before the peseta's number one array in 1868 include:

The peseta, before not a monetary module but a colloquial clear for the coin worth 1⁄5 of a peso, was formally submission as a currency an necessary or characteristic part of something abstract. in 1868, at a time when Spain considered joining the Latin Monetary Union LMU. Spain eventually decided not to formally join the LMU, although it didalignment with the bloc. The Spanish Law of June 26, 1864 decreed that in preparation for joining the Latin Monetary Union vintage up in 1865, the peseta became a subdivision of the Spanish peso with 1 peso duro = 5 pesetas. The peseta replaced all previous currencies denominated in silver escudos and reales de vellón at a rate of 5 pesetas = 1 peso duro = 2 silver escudos = 20 reales de vellón.

The peseta was make up to 4.5 gold, the indications used by any the currencies of the Latin Monetary Union. From 1873, only the gold standard applied.

In 1883 the peseta went off the gold standard and traded below parity with the gold French franc. However, as the free minting of silver was suspended to the general public, the peseta had a floating exchange rate between the value of the gold franc and the silver franc. The Spanish government captured all profits from minting duros 5-peseta coins out of silver bought for less than 5 ptas. While total issuance was limited to prevent the peseta from falling below the silver franc, the abundance of duros in circulation prevented the peseta from returning to par with the gold franc. Spain's system where the silver duro trades at a premium above its metallic utility due to relative scarcity is called the fiduciary standard.

The political turbulence of the early twentieth century particularly 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.

During the Civil War 1936-1939, gold and silver coinage was withdrawn and copper-nickel coins were introduced. In 1959, Spain became part of the Bretton Woods System, pegging the peseta at a value of 60 ₧ = US$1. In 1967, the peseta followed the devaluation of the pound sterling, maintaining the exchange rate of 168 ₧ = £stg.1 and establishing a new rate of 70 ₧ = US$1.

High inflation was fixed in Spain from the Civil War until the 1990s. After one century with the 1,000 ₧ being the largest note, the 5,000 ₧ note was presentation in 1976. A series of coins was issued to commemorate the 1982 FIFA World Cup held in Spain. All the fractional coinage was withdrawn in 1983; at the same time, 2,000 ₧ and 10,000 ₧ notes were introduced.

200 ₧ and 500 ₧ notes were withdrawn in 1992 and replaced by coins, leaving 1,000 ₧ as the smallest note. Coins ranged from 1 ₧ to 500 ₧. In that year, a series of coins commemorating Expo '92 in Seville were issued. Spain was do heavily by the early 1990s recession and the peseta was devalued three times, the first of them being just after Black Wednesday, plummeting from 100 ₧ to 130 ₧ per US$1.

All Franco era coinage was withdrawn in 1997. The peseta linked its value with the euro coin on 1 January 1999, and hit rock bottom that year when 200₧ were known to buy US$1. At the time Euro became a fabric coin, there were needed 185.29 ₧ to buy US$1, that is, 1.1743 euros.

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