For over 130 years, the peseta served as the financial backbone of Spain, facilitating daily transactions and representing the nation’s economy. Before the euro became Spain’s official currency, the peseta held this crucial role, deeply interwoven with Spanish life and history. This article delves into the origins and evolution of Spain’s currency before the euro, the peseta.
Established on October 19, 1868, through a government decree, the peseta became the foundational unit of Spain’s monetary system. Its introduction marked a significant step in standardizing the nation’s finances. 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 or FNMT-RCM). These initial coins featured a design inspired by Roman coinage, specifically a matronly figure reminiscent of coins from Emperor Hadrian’s reign. Throughout its long history, peseta coins underwent numerous transformations, varying in value, size, metallic composition, and the artistry of their designs on both sides.
The story of Spain’s currency before euro also includes banknotes. The first peseta banknotes were printed on July 1, 1874. This pivotal moment coincided with the Banco de España (Bank of Spain) gaining the exclusive authority to issue banknotes, centralizing currency production. Spaniards engaged in countless financial activities using over 50 different series of peseta banknotes throughout the currency’s lifespan. Interestingly, the Royal Mint of Spain itself began issuing banknotes on October 21, 1940. Prior to this, the Banco de España and even foreign companies managed banknote production.
Both peseta coins and banknotes acted as tangible chronicles of Spain’s shifting political landscapes, evolving philosophies, changing fashions, and societal trends. Today, they remain a valuable part of Spanish history, offering insights into the nation’s past.
However, Spain’s currency before euro eventually transitioned. On January 1, 2002, euro banknotes and coins were introduced into circulation, marking the beginning of the end for the peseta. For a transitional period lasting until February 28, 2002, both the euro and the peseta were legal tender in Spain. After this date, the euro became the sole official currency.
To ensure a smooth transition from Spain’s currency before euro to the new system, a period was established for exchanging pesetas for euros. Initially, until June 30, 2002, pesetas could be exchanged at both the Banco de España and other financial institutions. Following this date, the exchange service was exclusively available at the Banco de España. The final deadline for exchanging pesetas for euros was set for June 30, 2021, officially concluding the era of Spain’s currency before the euro for everyday transactions.
