Colombia was discovered by the Spanish in 1501-2 and was first settled in 1529. Colombia was part of the Vice-Royalty of New Granada from 1717 to independence on December 17, 1819. Some of the provinces enjoyed independence from Spain between 1812 and 1816. Simon Bolívar united Colombia, Venezuela, Panama, and Ecuador in the Republic of Greater Colombia (1819–1830), but lost Venezuela and Ecuador to separatists. Gran Colombia dissolved into Nueva Granada (Colombia), Venezuela and Ecuador on November 21, 1831. In 1858, the Granadine Confederation was formed from the nine states of Antioquia, Bolivar, Boyaca, Cauca, Cundinamarca, Cucuta, Santander, Tolima and Panama. In 1861 it was established as the United States of New Granada, in 1862 as the United States of Colombia. Colombia was briefly known as the Grenadine Confederation between 1858 and 1861, and it changed its name from Nueva Granada to the United States of Colombia on September 20, 1861. It became the Republic of Colombia on August 5, 1886. In 1903 Panama broke away and declared its independence.
While a Spanish colony, Escudos, Pesos and Reales (XESE) were used as coins, with 1 Escudo equal to 2 Pesos and 16 Reales. A mint was established in Bogota in the 1620s to mint gold and silver coins for New Granada. During the war for independence, Royalist Spanish colonial coins were minted in Colombia until 1822 while insurgents issued coins in the name of the Republic of Colombia as early as 1813.
After gaining independence, Gran Colombia continued to issue Escudos (COE), adopting the Peso as the unit of account in 1847. Coins were issued in the names of the Republic of Colombia (1822-37), Republic of New Grenada (1837-59), Granadine Confederation (1859-61), United States of Granada (1861-62) and United States of Colombia (1862-86). The Peso was decimalized in 1847 and made divisible into 10 Reales and 100 Decimos de Reales from 1847 to 1853, and into 10 Decimos from 1853 until 1872. On June 9, 1871, Colombia aligned the Gold Peso (COG) to the 5 Franc coin of the Latin Monetary Union, and in 1880, Colombia created the Banco Nacional and went on the Gold Standard.
The Banco Nacional issued excessive amounts of paper Pesos (COB), so on December 20, 1886 the convertibility of banknotes was suspended, and in 1894, the Banco Nacional was liquidated. In 1899, Colombia fell into a civil war known as the War of a Thousand Days and inflation became rampant once again. In 1903, Colombia temporarily adopted the US Dollar (USD) as its currency.
In 1905, the Banco Central de Colombia was established, and the Peso Oro (COP) was introduced, but excessive issuance of paper Pesos led to the liquidation of the Banco Central in 1909. Between 1907 and 1916, Colombia issued special Peso Papel Moneda (COM) coins made out of copper-nickel. When the Peso was reestablished, the coins were converted into the new Peso at the rate of 1 Peso P/M = 1 Centavo Peso Oro, or 1 Peso Oro was equal to 100 Peso Papel Moneda. Regular issues of silver coins resumed in 1911. The Colombia Peso Oro was renamed the Colombia Peso on January 1, 1993, only 62 years after Colombia left the Gold Standard.
Before 1923, Peso banknotes were issued by the national government, local provinces, private banks, and the National Bank creating monetary chaos and inflation. Since 1923, the Banco de la Republica has been the sole note-issuing authority, though this has not stopped excessive note issue and inflation. At various points in time, the regions/states of Antioquia, Bolivar, Cauca, Cundinamarca, Magdalena, Panama, Santander and Tolima also issued currency. |
