Peruvian sol (1863–1985)

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Peruvian sol
sol peruano (Spanish)
20 soles de 1879.JPG Un sol de 1889.JPG
20 soles banknote obverse1 sol coin reverse
ISO 4217
Code PES
Number 604
Denominations
Subunit
 ​110 dinero
 ​1100 centavo
Plural soles
Symbol S/.
Demographics
Date of introduction 1863
Replaced Peruvian real
Date of withdrawal 1985
Replaced by Peruvian inti
User(s)  Peru
Issuance
Central bank Central Reserve Bank of Peru
 Website www.bcrp.gob.pe
Valuation
Pegged with French franc (1863–1901)
Pound sterling (1901–1930)
United States dollar (1930–1985)
Value 1000 PES = PEI
This infobox shows the latest status before this currency was rendered obsolete.

The sol was the currency of Peru between 1863 and 1985. It had the ISO 4217 currency code PES. It was subdivided into 10 dineros or 100 centavos.

History[edit]

The sol was introduced in 1863 when Peru completed its decimalization, replacing the real at a rate of 1 sol = 10 reales. The sol also replaced the Bolivian peso, which had circulated in southern Peru, at the rate of 1 sol = 1.25 Bolivian pesos. Between 1858 and 1863, coins had been issued denominated in reales, centavos and escudos. The sol was initially pegged to the French franc at a rate of 1 sol = 5 francs (5.25 soles to the British pound and 1.08 soles to the US dollar).

In 1880 and 1881, silver coins denominated in pesetas, were issued, worth 20 centavos to the peseta. In 1881, the inca, worth ten soles, was introduced for use on banknotes. The peg to the franc was replaced in 1901 by a link to sterling at a rate of 10 soles = 1 pound, with gold coins and banknotes issued denominated in libra. This peg was maintained until 1930 when Peru left the gold standard and established an official rate of 2.5 soles = 1 USD, a rate which remained until 1946. In 1933, banknotes were issued once more denominated in soles, now called soles de oro. This name also appeared from 1935 on coins, when silver was replaced by base metal.

Fixed exchange rate to the U.S. dollar
Period Value of U.S. dollar in soles
1930-1946 2.5
1946-1949 2.75
1949 3.5
1950 5
1951-1953 10
1953-1958 19
1958 24.56
1959 27.71
1960 26.76
1961 26.81
1962-1967 26.82
1967-1975 38.7

Since 1975, multiple rates to the U.S. dollar have been used.

Due to the chronic inflation that occurred in Peru during the second presidency of Fernando Belaúnde Terry, the sol was replaced in 1985 by the inti at a rate of 1000 soles = 1 inti. The nuevo sol replaced the inti in 1991, during the administration of Alberto Fujimori, at the rate of 1 million to one (or 1 billion (109) old sols to 1 nuevo sol).

Sol notes and coins are no longer legal tender in Peru, nor can they be exchanged for notes and coins denominated in the current nuevo sol.

Coins[edit]

In 1863, cupro-nickel coins for 1 and 2 centavos and .900 silver coins for ½ and 1 dinero and ​15 sol were introduced, followed by .900 silver ½ and 1 sol in 1864. Gold 5, 10 and 20 soles were issued only in 1863. In 1875 and 1876, bronze replaced cupro-nickel. In 1879 and 1880, provisional coins were struck in cupro-nickel in denominations of 5, 10 and 20 centavos for replacing the banknotes with coins. In 1898, gold coins for 1 libra (10 soles) were introduced, followed by ½ libra (5 soles) in 1902 and ​15 libra (or 2 soles) in 1905. These were issued for circulation until 1930.

In 1918, cupro-nickel 5, 10 and 20 centavos coins were introduced, followed, in 1922 with ½ and 1 sol coins in .500 fineness silver. The silver ½ and 1 sol were replaced by brass coins in 1935. Brass 5, 10 and 20 centavos followed in 1942. In 1950, zinc 1 and 2 centavos coins were introduced which were issued until 1958. In 1965, 25 centavos coins were introduced, followed, in 1969, by cupro-nickel 5 and 10 soles.

Production of 5 and 25 centavos ceased in 1975, followed by 10 and 20 centavos in 1976, and 50 centavos in 1977. In 1978, brass replaced cupro-nickel in the 5 and 10 soles whilst aluminium-bronze 50 soles and cupro-nickel 100 soles coins were introduced in 1979 and 1980. The last 1 and 5 soles coins were issued in 1982 and 1983. In 1984, brass 10, 50, 100 and 500 soles coins were issued. The last of these pieces was minted in 1985.

Banknotes[edit]

The first banknotes were introduced by the private banks. In 1864, Banco La Providencia introduced notes for 5, 20, 40, 80 and 200 soles, with all but the 5 soles also denominated in pesos (25, 50, 10 and 250 pesos). Later issues of this bank included denominations of ½, 1, 2, 4, 5, 8, 10, 20, 50, 100, 500 and 1000 soles.

Other private banks which issued notes in Peru were:

Bank Dates
Banco Anglo-Peruana 1873-1877
Banco de Arequipa 1871-1874
Banco de la Compañía General del Perú 1873
Banco de Emisión del Cerro 1872
Banco Garantizador 1872-1876
Banco de Lima 1870-1878
Banco de Londres, Mexico y Sud America 1866-1875
Banco Nacional del Perú 1873-1877
Banco del Perú 1864-1878
Banco de Piura 1873-1878
Banco de Tacna 1870s
Banco de Trujillo 1871-1876
Bancodel Valle de Chicama 1870s
Compañia de Obras Públicas y Fomento del Perú 1876
Monte de Piedad de Lima 1870s

Additional denominations to those issued by the Banco La Providencia included 10, 20 and 40 centavos, 25 and 400 soles.

20 soles banknote, 1879

In 1879, the government introduced notes for 1, 2, 5, 10, 20, 50, 100 and 500 soles. In 1881, 5 and 100 incas notes were overprinted with the denominations 50 and 1000 soles. In 1914, bearer cheques were introduced for ½, 1, 5 and 10 libras (5, 10, 50 and 100 soles). 1 sol cheques were issued in 1918 whilst, in 1917, gold certificates for 5 and 50 centavos and 1 sol were issued. In 1922, the Reserve Bank of Peru took over paper money production, issuing a final series of libra notes.

In 1933, the Reserve Bank began issuing notes denominated in soles. The first issues were libra notes overprinted with the new denominations of 5, 10, 50 and 100 soles. Regular issues followed in denominations of ½, 1, 2, 5, 10, 20, 50 and 100 soles. 50 centavos and 1 sol were only issued until 1935. 500 soles notes were introduced in 1946, followed by 200 and 1,000 soles in 1968. The 5 soles note was last produced in 1974, with the 10 and 50 soles being last issued in 1976 and 1977 respectively. That same year, 5,000-sol notes were introduced. In 1979, 10,000 soles notes were added, followed by 50,000 soles in 1981.

See also[edit]

References[edit]

  • Dargent C., Eduardo: El Billete en el Peru. Banco Central de Reserva del Peru. Oficina del Museo, Lima, 1979.
  • Gruenthal, Henry and Sellschopp, Ernesto: The Coinage of Peru. Numismatischer Verlag P.N. Schulten, Frankfurt am Main, 1978.
  • Krause, Chester L.; Clifford Mishler (1991). Standard Catalog of World Coins: 1801–1991 (18th ed.). Krause Publications. ISBN 0873411501.
  • Pick, Albert (1994). Standard Catalog of World Paper Money: General Issues. Colin R. Bruce II and Neil Shafer (editors) (7th ed.). Krause Publications. ISBN 0-87341-207-9.
  • Pick, Albert (1990). Standard Catalog of World Paper Money: Specialized Issues. Colin R. Bruce II and Neil Shafer (editors) (6th ed.). Krause Publications. ISBN 0-87341-149-8.
  • Yábar Acuña, Francisco: Monedas Fiduciarias del Perú 1822-2000. Lima, 2001.
  • Anibal Zarauz (1979). Gloria Ponce, ed. Paper Money of Peru (1st ed.). Leoncio Prado Military School.