Spanish real

The real (meaning: "royal", plural: reales) was a unit of currency in Spain for several centuries after the mid-14th century (see Spanish colonization of the Americas), but changed in value relative to other units introduced. In 1864, the real was replaced by a new escudo, then by the peseta in 1868, when a real came to mean a quarter of a peseta.

History

The first real was introduced by King Pedro I of Castile in the mid 14th century at a value of 3 maravedíes. This rate of exchange increased until 1497, when the real, now issued in billon, was fixed at a value of 34 maravedíes. The famous "piece of eight" (peso de a ocho), also known as the Spanish dollar, was issued that same year as a trade coin. It later became widespread in North America and Asia. In 1566, the gold escudo was introduced, worth 16 silver reales. The "piece of eight" was so-called because the denomination was divided into eight silver reales (8 reales = 1 silver peso). In addition to the "piece of eight," which was a one-ounce (28 g) silver coin, other coins based on it were issued: 4 reales, 2 reales, 1 real and the little (12 mm diameter) half real.