Peruvian sol Totally Explained

Everything about Peruvian Sol totally explained

The sol, was the currency of Peru between 1863 and 1985. It had the ISO 4217 currency code PEH. It was subdivided into 10 dineros or 100 centavos. The name derives from the sueldo, the Spanish equivalent of the French sou and Italian soldo.

History

The sol was introduced in 1863 when Peru completed its decimalization, replacing the real at a rate of 1 sol = 10 reales. The sol also replaced the Bolivian peso, which had circulated in southern Peru, at the rate of 1 soles = 1.25 Bolivian pesos. Between 1858 and 1863, coins had been issued denominated in reales, centavos and escudos. The sol was initially pegged to the French franc at a rate of 1 sol = 5 francs (approximately 5 soles to the British pound).
In 1880 and 1881, silver coins denominated in pesetas, were issued, worth 20 centavos to the peseta. In 1881, the inca, worth ten soles, was introduced for use on banknotes. The peg to the franc was replaced in 1901 by a link to sterling at a rate of 10 soles = 1 pound, with gold coins and banknotes issued denominated in libra. This peg was maintained until 1930 when Peru left the gold standard and established an official rate of 2.5 soles = 1 USD, a rate which remained until 1947. In 1933, banknotes were issued once more denominated in soles, now called soles de oro. This name also appeared from 1935 on coins, when silver was replaced by base metal.

Exchange rate history

Sol to British pound

1863-1898: S/. 5 = £ 1 1898-1930: S/. 10 = £ 1

Sol to U.S. dollar

1930-1946: S/. 2.5 = US$ 1 1946-1949: S/. 2.75 = US$ 1 1949: S/. 3.5 = US$ 1 1950: S/. 5 = US$ 1 1951-1953: S/. 10 = US$ 1 1953-1958: S/. 19 = US$ 1 1958: S/. 24.56 = US$ 1 1959: S/. 27.71 = US$ 1 1960: S/. 26.76 = US$ 1 1961: S/. 26.81 = US$ 1 1962-1967: S/. 26.82 = US$ 1 1967-1975: S/. 38.7 = US$ 1
Since 1975, multiple rates to the U.S. dollar have been used.
Due to the chronic inflation that occurred in Peru during the second presidency of Fernando Belaúnde Terry, the sol was replaced in 1985 by the inti at a rate of 1,000/1. The nuevo sol replaced the inti in 1991, during the administration of Alberto Fujimori at the rate of one million to one.

Coins

In 1863, cupro-nickel coins for 1 and 2 centavos and .900 silver coins for ½ and 1 dinero and sol were introduced, followed by .900 silver ½ and 1 sol in 1864. Gold 5, 10 and 20 soles were issued only in 1863. In 1875 and 1876, bronze replaced cupro-nickel. In 1879 and 1880, provisional coins were struck in cupro-nickel in denominations of 5, 10 and 20 centavos for replaced the banknotes of cents. In 1898, gold coins for 1 libra (10 soles) were introduced, followed by ½ libra (5 soles) in 1902 and libra (or 2 soles) in 1905. These were issued for circulation until 1930.
In 1918, cupro-nickel 5, 10 and 20 centavos coins were introduced, followed, in 1922 with ½ and 1 sol coins in .500 fineness silver. The silver ½ and 1 sol were replaced by brass coins in 1935. Brass 5, 10 and 20 centavos followed in 1942. In 1950, zinc 1 and 2 centavos coins were introduced which were issued until 1965 and 1958, respectively. In 1966, 25 centavos coins were introduced, followed, in 1969, by cupro-nickel 5 and 10 soles.
Production of 5 and 25 centavos ceased in 1975, followed by 10 and 20 centavos in 1976, and 50 centavos in 1977. In 1978, brass replaced cupro-nickel in the 5 and 10 soles whilst aluminium-bronze 50 soles and cupro-nickel 100 soles coins were introduced in 1979 and 1980. The last 1 and 5 soles coins were issued in 1982 and 1983. In 1984, brass 10, 50, 100 and 500 soles coins were issued. The last of these pieces was minted in 1985.

Banknotes

The first banknotes were introduced by the private banks. In 1864, Banco La Providencia introduced notes for 5, 20, 40, 80 and 200 soles, with all but the 5 soles also denominated in pesos (25, 50, 10 and 250 pesos). Later issues of this bank included denominations of ½, 1, 2, 4, 5, 8, 10, 20, 50, 100, 500 and 1000 soles.
Other private banks which issued notes in Peru were:

Bank	ates
Banco Anglo-Peruana	1873-1877
Banco de Arequipa	1871-1874
Banco de la Compañía General del Perú	1873
Banco de Emisión del Cerro	1872
Banco Garantizador	1872-1876
Banco de Lima	1870-1878
Banco de Londres, Mexico y Sud America	1866-1875
Banco Nacional del Perú	1873-1877
Banco del Perú	1864-1878
Banco de Piura	1873-1878
Banco de Tacna	1870s
Banco de Trujillo	1871-1876
Bancodel Valle de Chicama	1870s
Compañia de Obras Públicas y Fomento del Perú	1876
Monte de Piedad de Lima	1870s

Additional denominations to those issued by the Banco La Providencia included 10, 20 and 40 centavos, 25 and 400 soles. In 1879, the government introduced notes for 1, 2, 5, 10, 20, 50, 100 and 500 soles. In 1881, 5 and 100 incas notes were overprinted with the denominations 50 and 1000 soles. In 1914, bearer cheques were introduced for ½, 1, 5 and 10 libras (5, 10, 50 and 100 soles). 1 sol cheques were issued in 1918 whilst, in 1917, gold certificates for 5 and 50 centavos and 1 sol were issued. In 1922, the Reserve Bank of Peru took over paper money production, issuing a final series of libra notes.
In 1933, the Reserve Bank began issuing notes denominated in soles. The first issues were libra notes overprinted with the new denominations of 5, 10, 50 and 100 soles. Regular issues followed in denominations of ½, 1, 2, 5, 10, 20, 50 and 100 soles. 50 centavos and 1 sol were only issued until 1935. 500 soles notes were introduced in 1946, followed by 200 and 1,000 soles in 1960. The 5 soles note was last produced in 1974, with the 10 and 50 soles being last issued in 1976 and 1977 respectively. That same year, 5,000-sol notes were introduced. In 1979, 10,000 soles notes were added, followed by 50,000 soles in 1982 and 100,000 soles in 1985.

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