- The peseta was the official monetary unit of Spain and its territories from 1868 until the arrival of the euro in 2002.
- Its evolution reflects the country's political changes, going through the monarchy, the Republic, the Franco dictatorship and democracy.
- The monetary system included a rich variety of coins and banknotes with popular nicknames such as the blonde, the hard one, or the moneybag.
To speak of the peseta is to take a direct journey to the very heart of Spanish identity. It was not merely a tool for buying bread or paying rent, but became a national symbol that lived with us for over a century, reflecting in its metals and paper every setback and every success of our modern history.
From the decree that established it as the single currency until the euro finally replaced it, the peseta had a turbulent life. It passed through the hands of kings, presidents, and dictators, and although it no longer has legal tender status, it remains alive in the collective memory and everyday language of millions of people who still mentally calculate the cost of things in pesetas.
The foundations and the official birth
Although the peseta was officially adopted in the 19th century, its roots are older and have a distinctly Catalan flavor. The word comes from *peceta* , the diminutive of *peça* (piece), referring to small silver coins. As early as 1706, during the War of the Spanish Succession, two-real coins were minted in Barcelona, which people already called *peceta*. Later, in 1808, under the Napoleonic rule of Joseph Bonaparte, coins with the official name of peseta began to be minted in Catalonia.
However, the key moment arrived on October 19, 1868. The Minister of Finance, Laureano Figuerola , signed the decree establishing the peseta as the national currency. The objective was twofold: firstly, to erase all traces of the Bourbon monarchy after the Glorious Revolution, and secondly, to adapt Spain to the metric system and the Latin Monetary Union, led by France. Thus, the peseta replaced the old escudo, although people continued to refer to it colloquially as reales for a long time.
Money as a mirror of politics
The design of coins has always been a barometer of power. In the beginning, the national coat of arms and the royal effigy were retained. But with the arrival of the Second Republic, a complete typological break occurred , introducing republican motifs. It was during this period, specifically in 1937, that the famous "blonde" appeared , a brass coin with the face of a woman representing the Republic.
After the Civil War, Franco's regime underwent a radical transformation. Precious metals were removed from the currency, and the general's portrait was imposed, first in a younger version and then in a more mature one. For decades, Spaniards carried Franco's face on their pockets, until the arrival of democracy brought the image of King Juan Carlos I and the Royal Coat of Arms. Interestingly, from 1990 onwards, the monarchical tradition gave way to cultural and artistic motifs , with coins dedicated to autonomous communities and historical figures.
Banknotes, metals and street language
The peseta wasn't just coins; the banknotes also told a story. The first ones appeared in 1874, primarily intended for financial institutions due to their high value. Over time, devaluation forced the issuance of banknotes in lower denominations. In the 70s and 80s, we saw the arrival of 5.000 and 10.000 peseta banknotes to facilitate large payments, culminating in the 1992 series that commemorated the discovery of America.
The most distinctive feature of the peseta was undoubtedly its language. Not everything was nominal. The 5-cent coin was called the " perra chica" (little bitch) and the 10-cent coin the "perra gorda" (big bitch), because the engraved lion looked more like a dog. The 5-peseta coin was the " duro ," a term that became the de facto unit of measurement for many people. Banknotes also had their nicknames: the 1.000-peseta note was the " talego" or "napo ," and the 5.000-peseta note the "boniato" (sweet potato), due to its brown color.
The decline and the transition to the euro
In the late 90s, the peseta began to lose ground against the European market. On December 31, 1998, it ceased to be officially traded, although we continued to use it in our daily lives until January 2002. For two months, the euro and the peseta coexisted in our pockets , until March 1, 2002, when the euro became the sole legal tender. The exchange rate was set at 166,386 pesetas per euro , a figure that many of us rounded to 166,67 for ease of calculation.
The exchange process was lengthy. Initially, pesetas could be exchanged at banks, and later only at the Bank of Spain. The final deadline for returning pesetas was June 30, 2021 , thus concluding a 133-year cycle. Interestingly, thousands of tons of metal from the old coins were recycled to manufacture everything from beer barrels to ship propellers and cooling pipes.
International presence and curiosities
The peseta wasn't only used in Spain. Equatorial Guinea used the Equatorial Guinean peseta until 1975, and today the Sahrawi peseta exists as a commemorative coin. Even in Peru, some coins were minted with this name in 1880. In Puerto Rico, some people still call the 25-cent coin a "peseta," keeping the term alive through generations.
For those feeling nostalgic, there are several monuments to the peseta in cities like Fuengirola, Estepona, and Tres Cantos, where giant sculptures of the aluminum coins have been erected. These works serve as a reminder that, beyond its economic value, the peseta was a constant companion to millions of people, a piece of metal that helped build modern Spain.
This currency has come a long way, from its humble beginnings as a small silver coin in Barcelona to becoming the economic engine of a country that experienced monarchies, republics, and dictatorships. Its legacy lies not only in its exchange value, but also in popular culture, curious nicknames, and the Spaniards' ability to continue doing calculations in pesetas and kilos even decades after the euro took over.
