Thereal (English: /ɹeɪˈɑl/ Spanish: /reˈal/) (meaning: "royal", plural:reales) was a unit of currency inSpain for several centuries after the mid-14th century.[1] It underwent several changes in value relative to other units throughout its lifetime until it was replaced by thepeseta in 1868. The most common denomination for the currency was thesilver eight-realSpanish dollar (real de a ocho), orpeso, which was used throughout Europe, America and Asia during the height of theSpanish Empire.
The first real was introduced byKing Pedro I ofCastile in the mid 14th century, with 66 minted from aCastilian mark of silver (230.0465 grams) in a fineness of134⁄144 (0.9306), and valued of threemaravedíes. It circulated beside various other silver coins until a 1497 ordinance eliminated all other coins and retained the real (now minted 67 to a mark of silver, 0.9306 fine, fine silver of 3.195 grams) subdivided into 34 maravedíes.[2]
The silver real was minted in half-, one-, two-, four- and eight-real denominations. After the discovery of silver inMexico,Peru andBolivia in the 16th century, the eight-real coin (referred to since then as adollar,peso orpiece of eight) became an internationally recognized trade coin in Europe, Asia and North America and were known variously aspesos,duros,diuros fuertes,thalers,dollars, andpiastres.[3] These reales were supplemented by the goldescudo, minted 68 to a mark of11⁄12 fine gold (3.101 g fine gold), and valued at 15–16 silver reales or approximately two dollars.
This real, worth1⁄8 dollar, was retained inLatin America until the 19th century but was altered considerably in peninsular Spain beginning in the 17th century. ThisSpanish colonial real was subsequently referred to asmoneda nacional ("national money") and underwent two more changes:
The various financial crises underKing Philip II gave rise starting in 1600 to thereal de vellón (made ofbillon, or less than half silver). The relative autonomy of Spain's constituent kingdoms resulted in reales of varying silver content and worth considerably less than thereal nacional, worth1⁄8 of a dollar. The monetary confusion would not be resolved until thereal de vellón was fixed at 20 reales to the dollar in 1737.[3]
The first ordinance officially devaluing the Spanish non-colonial real came out in 1642, with thereal provincial debased from 67 to83+3⁄4 to a mark of silver (hence, ten reales to the dollar). Actual coins worth a half, one, two, four and eight reales provincial (the latter worth4⁄5 of a dollar and calledpeso maria) were minted in 1686 and were poorly received by the public.[4]
The same 1686 recoinage came with edicts in 1686–1687 fixing thereal de vellón at one dollar =15+2⁄34 reales or 512 maravedíes (or 1 dollar = 8reales nacionales, worth 64maravedíes). The ineffectiveness of these edicts meant that existingreales de vellón were worth even less than15+2⁄34 of a dollar (0.0664 dollars).
The confusion to the monetary situation would not be resolved until 1737 in various stages, namely:
Subsequent changes until the end of the 18th century were minor and involved reducing the fineness of the silver dollar to130⁄144 = 0.9028 fine and the gold escudo (now worth 2 dollars, or 40reales de vellón) from 0.917 to 0.875 fine. Starting 1810 silver coin denominations were revised to their more common-sense values inreales de vellón: 20, 10, 4, 2 and 1 real with 1 real =1⁄20 dollar.
The loss of American possessions in the first third of the 19th century cut off the inflow of precious metals into Spain and resulted in the gradual use of French coinage in local circulation. These subsequent changes to the Spanish currency system were never carried out in full:
The real was only retired completely with the introduction in 1868 of theSpanish peseta, at par with theFrench franc, and at the rate of 1 dollar = 20 reales = 5 pesetas. Consequently, the termreal lived on, meaning a quarter of a peseta (25céntimos de peseta).
Coins were minted in both Spain and Latin America from the 16th to 19th centuries in silver1⁄2, 1, 2, 4 and 8reales nacionales and in gold1⁄2, 1, 2, 4 and 8escudos. The silver eight-real coin was known as theSpanish dollar (as the coin was minted to the specifications of thethaler of theHoly Roman Empire andHabsburg monarchy),peso,duro or the famouspiece of eight. Spanish dollars minted between 1732 and 1773 are also often referred to ascolumnarios. The portrait variety from 1772 and later are typically referred to as Spanish dollars or pillar dollars.
Coins were minted in Spain in copper 1, 2, 4 and 8 maravedíes, in silver coins equivalent to 1, 2, 4, 10 and 20reales de vellón since 1737, and in gold coins equivalent to1⁄2, 1, 2, 4 and 8 escudos. New coins introduced after the 1850 decimalization include copper 5, 10 and 25céntimos de real as well as a new gold 100-real (five-dollar) coin.
