Juan Diaz de Solis was the first Spaniard to explore the River Plate estuary. Argentina was part of the Vice Royalty of Peru until August 1, 1776, when the Vice Royalty of Rio de la Plata was established. The independence movement began in 1806 and by 1810 Buenos Aires had come under the control of Argentinian patriots. On July 9, 1816, the United Provinces of the Rio Plate, which included Argentina, Paraguay and Uruguay, declared their independence from Spain. The national government of Argentina collapsed in 1820, followed by the establishment of the Argentine Confederation on January 4, 1831. The national government collapsed again on December 12, 1861, but Argentina was reestablished as a republic on April 12, 1862.
Spanish Escudo coins (XESE) were used in Argentina while it was a Spanish viceroyalty, using silver from Peru and elsewhere. The Escudo was divisible into 2 Pesos, 16 Reales (Soles) or 544 Maravedis. From 1816 until 1852, provinces had some degree of political autonomy, and some of the provinces issued coins and banknotes, denominated in National Pesos (XARP). The first coins were issued under the name "Provinces of the River Plate" between 1813 and 1815. Coins were also issued in Rioja, Mendoza, Tucuman, Buenos Aires and Cordoba.
The Argentine Confederation (excluding Buenos Aires) was formed in 1852, and issued its own banknotes, as did the Province of Buenos Aires. During the 1800s, banknotes were issued by the provinces, by private banks, and by a system of national banks. The Peso Fuerte (ARF) was issued by the central government after unification.
A decimal system of coinage was introduced in 1875, though coins weren’t minted until 1881. The Gold Peso (ARG) included the larger denominations Medio (2.5 pesos), Argentino (5 Pesos) and Onza (16 Pesos). The Peso was primarily divisible into 100 Centavos, but it was also divisible into 10 Decimos and 1000 Milesimos. The peso was at par with the Franc of the Latin Monetary Union.
Paper inflation soon followed, and in 1899 a Paper Peso (ARM) (known after 1933 as the Peso Moneda Nacional) was introduced at a rate of 1 Paper Peso equals 0.44 Gold Pesos (ARG). Argentina used a currency board from 1902-1914 and 1927-1929. From the 1930s on, the Peso steadily depreciated. Argentina tried to control the currency with multiple exchange rates for imports and exports, but because Argentina had one of the most persistent inflations of the twentieth century, multiple exchange rates were periodically expanded, abolished, reintroduced and abolished once again for each of its currencies.
The Peso Ley 18.188 (ARL) replaced the Peso Moneda Nacional at 1 Peso Ley equal to 100 Peso Moneda Nacional on January 1, 1970; the Peso Argentino (ARP-Ley 22.707) replaced the Peso Ley on June 1, 1983 at 1 Peso Argentino equal to 10,000 Peso Ley; the Austral (ARA-Decreto 1096/85) replaced the Peso Argentino on June 14, 1985 at 1 Austral equal to 1000 Peso Argentino; and the Peso Convertible (ARS-Decreto 2128/91) replaced the Austral on January 1, 1992 at 1 Peso Convertible equal to 10,000 Australes. The Peso Convertible was pegged to the Dollar at par when a currency board was established on April 1, 1991, ending decades of inflation. In December 2001, a new currency, the Argentino, was proposed as a third currency alongside the Peso and US Dollar, but it was never introduced. On January 6, 2002, the Peso Convertible broke its link to the US Dollar.
Banknotes were issued by the Banco Nacional from 1884 until 1890, by the Banco de la Nacion Argentina from 1891 until 1899, by the Caja de Conversion from 1899 until 1935, and by the Banco Central de Argentina since 1935.
At various points in time, currency was issued by the provinces of Catamarca, Cordoba, Corrientes, Entre-Rios, Jujuy, La Rioja, Mendoza, Salta, San Juan, San Luis, Santa Fe, Santiago del Estero and Tucuman. |
