The real 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, fineness or 0.9306, and valued of 3 maravedíes. It co-circulated with various other silver coins until a 1497 ordinance eliminated all other coins and retained the real subdivided into 34 maravedíes. The silver real was minted in -, 1-, 2-, 4- and 8-real denominations. After the discovery of silver in Mexico, Peru and Bolivia in the 16th century, the 8-real coin became an internationally recognized trade coin in Europe, Asia and North America. These reales were supplemented by the gold escudo, minted 68 to a mark of fine gold, and valued at 15–16 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 starting in the 17th century. This Spanish colonial real was subsequently referred to as moneda nacional and underwent two more alterations, namely:
1728: 68 reales minted to a mark, or 0.9167 fine
1772: dollars minted to a mark, or 0.9028 fine
In Spain – 17th and 18th centuries
The various financial crises under King Philip II gave rise starting in 1600 to the real de vellón. The relative autonomy of Spain's constituent kingdoms resulted in reales of varying silver content and worth considerably less the real nacional worth of a dollar. The monetary confusion would not be resolved until the real de vellón 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 real provincial debased from 67 to to a mark of silver. Actual coins worth, 1, 2, 4 and 8 reales provincial were minted in 1686 and were poorly received by the public. The same 1686 recoinage came with edicts in 1686–1687 fixing the real de vellón at one dollar = reales or 512 maravedíes. The ineffectiveness of these edicts meant that existing reales de vellón were worth even less than of a dollar. The confusion to the monetary situation would not be resolved until 1737 in various stages, namely:
The dollar of 8 reales nacionales reduced in 1728 to dollars to a mark, or 0.9167 fine
Real nacional coins were reintroduced in 8-real and 4-real denominations worth 1 dollar and dollar, respectively.
Real provincial coins were limited to 2-, 1- and -real denominations worth, and dollar, respectively.
The Real de vellón was finally fixed in 1737 at dollar and equal to 34 maravedíes, and
The Peso de cambio of 512 maravedíes as introduced in 1686 continued to be used as an accounting unit but worth a reduced value of dollar. This was divided into eight reales de cambio each of 64 maravedíes.
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 from 0.917 to 0.875 fine. Starting 1810 silver coin denominations were revised to their more common-sense values in reales de vellón: 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 first decimal currency of 1850, with the real de vellón worth dollar, 10 décimas or 100 céntimos, and with maravedíes discontinued.
The second decimal currency of 1864, with a new silver escudo worth dollar, 10 reales de vellón or 100 céntimos de escudo.
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.
Coins
Coins were minted in both Spain and Latin America from the 16th to 19th centuries in silver, 1, 2, 4 and 8 reales nacional and in gold, 1, 2, 4 and 8 escudos. The silver 8-real coin was known as the Spanish dollar, or peso, 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 maravedíes, in silver coins equivalent to 1, 2, 4, 10 and 20 reales de vellón 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 céntimos de real was well as a new gold 100-real coin.
