The real (English: , ; Spanish: , meaning: "royal"; plural reales) was a unit of currency in Spain for several centuries after the mid-14th century. It underwent several changes in value relative to other units throughout its lifetime until it was replaced by the peseta in 1868. The most common denomination for the currency was the silver eight-real Spanish dollar (), or peso, which was used throughout Europe, America and Asia during the height of the Spanish Empire.
The first real was introduced by King Pedro I of Castile in the mid 14th century, with 66 minted from a Castilian mark of silver (230.0465 grams) in a fineness of (0.9306), and valued of three maravedÃÂes. 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 maravedÃÂes.
The silver real was minted in half-, one-, two-, four- and eight-real denominations. After the discovery of silver in Mexico, Peru and Bolivia in the 16th century, the eight-real coin (referred to since then as a dollar, peso or piece of eight) became an internationally recognized trade coin in Europe, Asia and North America and were known variously as pesos, duros, diuros fuertes, thalers, dollars, and piastres. These reales were supplemented by the gold escudo, minted 68 to a mark of fine gold (3.101 g fine gold), and valued at 15âÂÂ16 silver reales or approximately two dollars.
This real, worth dollar, was retained in Latin America until the 19th century but was altered considerably in peninsular Spain beginning in the 17th century. This Spanish colonial real was subsequently referred to as moneda nacional ("national money") and underwent two more changes:
The various financial crises under King Philip II gave rise starting in 1600 to the (made of billon, 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 the , worth of a dollar. The monetary confusion would not be resolved until the was fixed at 20 reales to the dollar in 1737.
The first ordinance officially devaluing the Spanish non-colonial real came out in 1642, with the debased from 67 to 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 worth of a dollar and called peso maria) were minted in 1686 and were poorly received by the public.
The same 1686 recoinage came with edicts in 1686âÂÂ1687 fixing the at one dollar = reales or 512 maravedÃÂes (or 1 dollar = 8 , worth 64 ). The ineffectiveness of these edicts meant that existing were worth even less than 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 to = 0.9028 fine and the gold escudo (now worth 2 dollars, or 40 ) from 0.917 to 0.875 fine. Starting 1810 silver coin denominations were revised to their more common-sense values in : 20, 10, 4, 2 and 1 real with 1 real = 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 the Spanish peseta, at par with the French franc, and at the rate of 1 dollar = 20 reales = 5 pesetas. Consequently, the term real lived on, meaning a quarter of a peseta (25 ).
Coins were minted in both Spain and Latin America from the 16th to 19th centuries in silver , 1, 2, 4 and 8 reales nacionales and in gold , 1, 2, 4 and 8 escudos. The silver eight-real coin was known as the Spanish dollar (as the coin was minted to the specifications of the thaler of the Holy Roman Empire and Habsburg monarchy), peso, duro or the famous piece of eight. Spanish dollars minted between 1732 and 1773 are also often referred to as columnarios. 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 maravedÃÂes, in silver coins equivalent to 1, 2, 4, 10 and 20 since 1737, and in gold coins equivalent to , 1, 2, 4 and 8 escudos. New coins introduced after the 1850 decimalization include copper 5, 10 and 25 as well as a new gold 100-real (five-dollar) coin.