The first Spaniards explored Peru in the 1520s, and in 1533 the Inca Empire of Peru fell to the Spanish conquistadores. Lima was founded in 1835, and the Spanish set up the Vice Royalty of Peru in 1542 after discovering the region was rich in silver. Peru gained its independence on July 28, 1821 when Lima was liberated by General Jose San Marin. In 1836, Andres de Santa Cruz, President of Bolivia, attempted to confederate Peru and Bolivia. The South Peruvian state was proclaimed on March 17, 1836 and the North Peruvian State on August 11, 1836. The Confederation between Peru and Bolivia ceased on February 20, 1839. Peru was reconstituted on August 25, 1838. Chile occupied Peru from September 28, 1881 until October 23, 1883.
In 1565 King Philip II authorized a mint for Lima. The first silver coins were struck in Lima between 1568 and 1570, and the first gold Doubloons in 1675. After gaining its independence, Peru adopted the Peso following the Spanish monetary system. Between 1835 and 1839 Lima issued coins for the North Peru Republic and Cuzco and Arequipa issued coins for South Peru. In 1858 the coinage was decimalized, though 12.5 Centimos (1 Real) coins were issued. This system lasted until 1861.
The Silver Sol (PES) replaced the silver Peso on February 14, 1863, linking the Sol to the French Franc Germinal at the rate of 1 Sol equal to 5 Francs Germinal. Coins were issued by both North Peru and South Peru during the confederacy with Bolivia between 1836 and 1838. On March 23, 1880, the Inca, equivalent to 5 Pesetas was introduced. Coins were minted and on October 18, 1880, an issue of 5 million Incas in banknote was authorized. During the Chilean occupation, the capital was moved to Ayacucho, and Inca banknotes (PER), were set equal to 10 Soles or 100 Reales de Inca. The banknotes were withdrawn in 1882.
On December 14, 1901, Peru went on the Gold Standard, introducing the Libra (PEL) at par with the British Pound Sterling and equal to 10 Soles de Oro. Peru issued gold coins, mainly for international consumption, from 1898 to 1969. The Sol was reintroduced as the primary currency on May 18, 1932 when Peru left the gold standard and depreciated the currency. The Sol was divisible into 10 Dineros or 100 Centavos. The inflation of the 1980s forced Peru into two currency reforms. The Inti replaced the Sol on February 1, 1985 at the rate of 1 Inti equal to 1000 Pesos. The Sol Nuevo replaced the Inti on July 1, 1991 at the rate of 1 Sol Nuevo equal to 1,000,000 Inti. The Nuevo Sol is divisible into 100 Centimes.
The government issued banknotes until 1922 when the Banco de Reserva del Peru was established. The Banco de Reserva del Peru was reconstituted as the Banco Central de Reserva del Peru in 1931 and became the sole note-issuing authority. |
