Juan Diaz de Solis, leading a Spanish expedition in 1515, is credited with the discovery of Uruguay, though Portuguese ships had probably visited the vicinity earlier. Uruguay was a Spanish colony and part of the Vice-Royalty of Rio de la Plata until 1821 when Brazil occupied Uruguay in 1811. Uruguay gained its independence from Brazil on August 25, 1825, and was reincorporated into the United Provinces of Rio de la Plata. It seceded from the United Provinces on December 1, 1828 and founded the República Oriental del Uruguay on July 18, 1830.
The Spanish Escudo (XESE) was used in Uruguay while it was a Spanish colony, and Brazilian Mil Reis (BRM) were used while it was occupied by Brazil. Independent Uruguay used the coinage of the United Provinces of the River Plate as legal tender between 1831 and 1840. Uruguay issued its first coins in 1840, although the government didn’t mint its own coins until 1844. Since 1857 all Uruguayan coins have been minted outside of Uruguay.
Uruguay introduced the Uruguayan Peso Fuerte (UYF), divisible into 100 Centesimos, on June 23, 1862 and the first Peso Fuerte coins were issued in 1869. The Peso Fuerte was linked to the French Franc Germinal at the rate of 1 Peso equal to 5 French Francs. Uruguay left the Gold Standard in November 1929 and introduced exchange controls on September 7, 1931. Inflation led to the introduction of a Peso Nuevo (UYP) on July 1, 1975 at the rate of 1 Peso Nuevo equal to 100 Pesos Fuertes. Further inflation led to the introduction of the Peso Uruguayo (UYU) on March 1, 1993 at the rate of 1 Peso Uruguayo equal to 1000 Pesos Nuevos.
Private banks and the government issued banknotes in Uruguay until 1896. The Banco Nacional was established on June 23, 1862 and began issuing banknotes in 1887. The Banco de la Republica Oriental del Uruguay was established on August 24, 1896 and gained the sole right to issue banknotes. The Banco Central del Uruguay succeeded it on March 1, 1967. |
