For over 130 years, the peseta served as the fundamental unit of currency in Spain, shaping the nation’s economic history and daily transactions. Established on October 19, 1868, through a Government Decree, the peseta became deeply ingrained in Spanish life until the adoption of the euro. Its long and rich history reflects Spain’s political, social, and economic evolution.
The Birth and Evolution of the Peseta
The first peseta coins emerged in 1869 from the Madrid mint, now known as the Royal Mint of Spain (Fábrica Nacional de Moneda y Timbre – Real Casa de la Moneda, FNMT-RCM). These initial coins featured a design inspired by Roman coinage and depicted a matronly figure reminiscent of those minted during Hadrian’s reign. Throughout its history, the peseta coinage underwent numerous transformations, encompassing diverse values, sizes, metallic compositions, and designs on both the obverse and reverse sides. These changes mirrored different eras and artistic styles prevalent in Spain.
Banknotes in pesetas first appeared on July 1, 1874, coinciding with the Banco de España (Bank of Spain) being granted the exclusive authority to print paper money. This marked a significant step in the formalization of Spain’s monetary system.
Spaniards utilized over 50 different issues of peseta banknotes throughout the currency’s lifespan. Initially, the Banco de España and foreign companies managed banknote issuance. However, on October 21, 1940, the Royal Mint of Spain commenced its own banknote production, taking on a more direct role in the currency’s creation. This internal production signified a shift in how Spain managed its currency.
Both peseta coins and banknotes served as tangible records of Spain’s shifting political landscapes, philosophical movements, evolving fashions, and societal trends. Today, they remain a significant part of Spanish history, evoking nostalgia and representing a bygone economic era.
The Transition to the Euro
On January 1, 2002, euro banknotes and coins were introduced into circulation in Spain, marking the beginning of a dual currency period. For a limited time, both the euro and the peseta coexisted, allowing for a gradual transition. This period ended on February 28, 2002, when the euro officially became the sole legal tender in Spain.
To facilitate the changeover, a system was established for exchanging pesetas for euros. Initially, until June 30, 2002, Spanish citizens could exchange their pesetas at both the Banco de España and various credit institutions. After this date, the exchange service was exclusively available at the Banco de España. The final deadline for exchanging pesetas for euros was June 30, 2021, concluding the Peseta’s long run as Spain’s official currency.
The adoption of the euro represented a major economic integration step for Spain, aligning it with a broader European monetary system and marking the end of the peseta’s era as the currency before the euro in Spain.
