Editing Spanish peseta (section)

== History ==
{{anchor|peso duro}}
Currencies used in Spain before the peseta's introduction in 1868 include:
* The ''[[maravedí]]'' from the 11th to 15th centuries.
* The original ''[[Spanish real]]'' (later, ''real nacional'') introduced in the mid-14th century, which from 1497 was fixed at 34 maravedíes. Eight of these ''reales nacional'' were equal to the [[Spanish dollar]], or ''peso'', or ''duro''.
* The ''real provincial'', used only in [[Peninsular Spain]] and not its colonies, and valued at {{frac|1|10}} dollar.<ref>{{Cite journal |last=Sumner |first=W. G. |date=1898 |title=The Spanish Dollar and the Colonial Shilling |url=https://www.jstor.org/stable/1834139 |journal=The American Historical Review |volume=3 |issue=4 |pages=607–619 |doi=10.2307/1834139 |jstor=1834139 |issn=0002-8762}}</ref>
* The ''real de vellón'', another version of the ''real'' also exclusive to Peninsular Spain, issued prolifically in the 17th and 18th centuries, and valued much less than the above-mentioned ''reales''. In 1737 it was finally fixed at {{frac|1|20}}th dollar. In 1850 it was divided decimally into 10 ''décimos'' or 100 ''céntimos''.
* The short-lived ''[[Spanish escudo#Silver escudo|silver escudo]]'' from 1864 to 1869, worth {{frac|1|2}} dollar and divided into 10 ''reales de vellón'' or 100 ''céntimos de escudo''.

The peseta, previously not a monetary unit but a colloquial name for the coin worth {{frac|1|5}} of a [[peso]], was formally introduced as a currency unit in 1868, at a time when Spain considered joining the [[Latin Monetary Union]] (LMU).<ref name="Brit">{{cite encyclopedia |url=https://www.britannica.com/topic/peseta |title=Peseta |encyclopedia=Encyclopaedia Britannica |access-date=2018-12-17 |archive-date=2018-12-18 |archive-url=https://web.archive.org/web/20181218054955/https://www.britannica.com/topic/peseta |url-status=live }}</ref> Spain eventually decided not to formally join the LMU, although it did achieve alignment with the bloc.<ref>{{cite book |url=https://books.google.com/books?id=s8hiamcsiFQC&pg=PA150 |page=150 |title=A Financial History of Western Europe |author=Charles P. Kindleberger |publisher=Taylor & Francis |year=2005|isbn=9780415378673 }}</ref> The Spanish Law of June 26, 1864 decreed that in preparation for joining the Latin Monetary Union (set 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 ''[[Spanish escudo|silver escudos]]'' and ''[[Spanish real|reales de vellón]]'' at a rate of 5 ''pesetas'' = 1 ''peso duro'' = 2 ''silver escudos'' = 20 ''reales de vellón''.

The peseta was equal to 4.5 [[gram]]s of [[silver]], or 0.290322&nbsp;grams of [[gold]], the standard used by all 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 Pts&nbsp;5. 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 value due to relative scarcity is called the ''fiduciary standard''.<ref>{{Cite web|url=https://books.google.com/books?id=6pzT6Rbb9eQC&pg=RA2-PA223|title=European Currency and Finance, ..., Pursuant to S. Res. 469, 67-4, ... Foreign Currency and Exchange Investigation|year=1925|access-date=2022-03-19|archive-date=2023-01-15|archive-url=https://web.archive.org/web/20230115102819/https://books.google.com/books?id=6pzT6Rbb9eQC&pg=RA2-PA223|url-status=live}}</ref>

The political turbulence of the early twentieth century (especially 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.<ref>{{cite news |work=BBC News |url=https://www.bbc.co.uk/news/magazine-17140379 |title=A Point of View: Making friends the shared currency way |date=2 March 2012 |access-date=17 December 2018 |archive-date=19 December 2018 |archive-url=https://web.archive.org/web/20181219234535/https://www.bbc.co.uk/news/magazine-17140379 |url-status=live }}</ref>

During the [[Spanish Civil War|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 Pts&nbsp;60 = [[United States dollar|US$]]1. In 1967, the peseta followed the devaluation of [[pound sterling|sterling]], maintaining the exchange rate of Pts&nbsp;168 = £1&nbsp;stg. and establishing a new rate of Pts&nbsp;70 = US$1.

High [[inflation]] was constant in Spain from the Civil War until the 1990s. After one century with the Pts&nbsp;1,000 being the largest note, the Pts&nbsp;5,000 note was introduced 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, Pts&nbsp;2,000 and Pts&nbsp;10,000 notes were introduced.

Pts&nbsp;200 and Pts&nbsp;500 notes were withdrawn in 1992 and replaced by coins, leaving Pts&nbsp;1,000 as the smallest note. Coins ranged from Pta&nbsp;1 to Pts&nbsp;500. In that year, a series of coins commemorating [[1992 Summer Olympics]] in [[Barcelona]] and [[Seville Expo '92|Expo '92]] in [[Seville]] were issued. Spain was hit heavily by the [[early 1990s recession]] and the peseta was devalued three times, the first of them being just after [[Black Wednesday]], plummeting from Pts&nbsp;100 to Pts&nbsp;130 per US$1.<ref>[https://elpais.com/diario/1993/05/14/portada/737330404_850215.html El paro y la devaluación de la peseta le explotan al PSOE en plena campaña] {{Webarchive|url=https://web.archive.org/web/20210513064455/https://elpais.com/diario/1993/05/14/portada/737330404_850215.html |date=2021-05-13 }}. [[El País (Spain)|El País]]</ref>

All [[Francoist Spain|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 Pts&nbsp;200 were required to buy US$1.<ref>[http://www.elpais.com/articulo/economia/SOLBES/_PEDRO_/PSOE_/_COMISARIO_EUROPEO/GURRIA/_JOSE_ANGEL_/MINISTRO_DE_ECONOMIA_MEXICANO/dolar/supera/200/pesetas/elpepieco/20001026elpepieco_12/Tes El dólar supera las 200 pesetas] {{Webarchive|url=https://web.archive.org/web/20230115102825/https://elpais.com/diario/2000/10/26/economia/972511212_850215.html |date=2023-01-15 }}. [[El País (Spain)|El País]]</ref> At the time Euro became a material coin, Pts&nbsp;185.29 were needed to buy US$1, that is, 1.1743 euros.<ref>{{cite web| url = http://www.ecb.int/euro/changeover/2002/html/index.en.html| title = Initial changeover (2002)| publisher = European Central Bank| access-date = 5 March 2011| archive-date = 27 May 2013| archive-url = https://web.archive.org/web/20130527210932/http://www.ecb.int/euro/changeover/2002/html/index.en.html| url-status = live}}</ref>

The peseta was replaced by the [[euro]] in 2002,<ref>{{cite news |url=http://news.bbc.co.uk/1/hi/business/1736935.stm |title=Euro becomes a reality |date=1 January 2002 |work=BBC News |access-date=17 December 2018 |archive-date=10 June 2003 |archive-url=https://web.archive.org/web/20030610004142/http://news.bbc.co.uk/1/hi/business/1736935.stm |url-status=live }}</ref> following the establishment of the euro in 1999. The exchange rate was €1 = Pts&nbsp;166.386.<ref>{{cite news |url=http://news.bbc.co.uk/1/hi/events/the_launch_of_emu/euro_latest/245679.stm |title=E-Day: The euro is born |date=1 January 1999 |work=BBC News |access-date=17 December 2018 |archive-date=13 October 2011 |archive-url=https://web.archive.org/web/20111013194412/http://news.bbc.co.uk/2/hi/events/the_launch_of_emu/euro_latest/245679.stm |url-status=live }}</ref>