Peruvian Sol - History

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 sol = 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 (5.25 soles to the British pound and 1.08 soles to the US dollar).

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 1946. 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.

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 1000 soles = 1 inti. The nuevo sol replaced the inti in 1991, during the administration of Alberto Fujimori, at the rate of 1 million to one (or 1 billion (109) old sols to 1 nuevo sol).