This is an outline of Uruguay's monetary history. For the present currency of Uruguay, see Uruguayan peso.
Pre-independence currency
Uruguay's currency was initially that common to all of Spanish America. During the struggle over this region, initially between Spain and Portugal, then between Argentina and Brazil, the coinage of both contestants circulated. When the area was annexed to Brazil in 1821 as Provincia Cisplatina, the Portuguese (Brazilian) administration put notes of Banco do Brazil into circulation. This was the first paper money to circulate in Uruguay. Then, in 1826–1828, Argentine troops fighting against Brazil were paid in one-peso notes issued by Banco Nacional of Buenos Aires for Provincia Oriental ("Eastern Province", i.e., Uruguay).
All parties to the conflict used the Spanish dollar (Spanish peso, Portuguese patacão), which circulated with a value of 8 Spanish reales or 960 Brazilian reis. Circulation consisted of coins from mints in Mexico, Potosí, Brazil, and Buenos Aires. During the turbulent period of conflict preceding independence, a considerable amount of poor-quality copper coin from both Buenos Aires and Brazil came into circulation.
1828–1854 Peso Peso (Patacón) = 8 Reales = 800 Centésimos de real (centavos)
Onza de oro = 16 Pesos
History In 1828, Uruguay's currency was based on the silver peso ($) of eight reales (R or r), commonly known as the patacón, and the gold onza de oro, valued at 16 pesos silver. But a large quantity of debased copper coin also circulated. Lacking the means to implement a national coinage, Gen. José Rondeau's provisional government permitted foreign silver and gold coin to circulate freely (law of 4 October 1828) at its intrinsic value, but it restricted and then prohibited the import of copper coin and the circulation of Buenos Aires bank notes (March 1829).
In January 1831, Gen. Fructuoso Rivera demonetized all copper coin in circulation, i.e., the coppers ceased to be legal tender for individuals and would be neither received nor paid out by public offices. Next, it was withdrawn at one patacón (8 reales) in silver or gold for 13 reales in copper.
To meet the need for small change, the government obtained Buenos Aires coins of one-tenth real (décimos de la ciudad de Buenos Aires; 24 mm, dated 1822 and 1823), and put about 1·6 million of them into circulation at half face value (Law 17 of 15 March 1831). This is considered the first money issued by República Oriental del Uruguay.
Finally, the government created a new monetary system (Law 208 of 20 June 1839), known as Sistema real, with accounts kept in a patacón (peso) of 8 reales, each of 100 centésimos. The patacón was a silver coin, 27·06 g, 0·902 fine (24·43 g fine silver). The standard gold coin was the onza de oro of 27·06 g, 0·875 fine, equal to 16 silver pesos. Other silver and gold coins were rated in terms of the patacón and onza, according to their intrinsic value.
Law 208 also authorized the minting of 20,000 pesos in copper coin, but only about 500 pesos in coins, dated 1840, were actually produced. The Government put the first of these coins into circulation on 15 October 1840 (and, since 1990, Uruguay has celebrated 15 October as "Día de la Numismática Nacional").
Copper coins and a silver peso were authorized by laws 254 and 255 of 13 December 1843, during Uruguay's long civil war, known as La Guerra Grande. The government established a mint (La Casa de Moneda de Montevideo) that produced three copper denominations and a silver peso fuerte or peso del Sitio (aka Montevideo dollar in English).
Paper Uruguay did not issue any paper money during this period, but paper near-money did appear. The Law of 26 January 1831 provided for a copper exchange company (Sociedad encambio del cobre) to issue notes for 1 and 5 pesos in exchange for copper coin. These notes were payable to bearer at sight after 90 days in gold onzas, silver pesos fuertes or patacones, or in subsidiary Brazilian silver, and they were received by government offices at par with silver and gold coin.
A law of 29 April 1835 authorized a foreign loan to pay off a portion of the national debt, and provided for the issue of up to $700,000 in polizas de deuda pública (public debt drafts). These were high-denomination vales (promissory notes) for 400, 500, 2000, and 5000 pesos, payable to bearer.
Coins
1840 issue Uruguay's first coins were two copper, centésimo denominations dated 1840, struck by a private firm (Taller Augustín Jouve) in Montevideo, the type being that of a radiate sun face: 5c, 24 mm (≈6000 pieces); and, 20c, 27·00 g, 37 mm (≈18,500 pieces). The 5c coin was known as cinquiño (from Portuguese cinquinho or maybe Galician cinquiño), the 20c as a vintén (from Portuguese vintém).
1843–1844 issue The three copper, centésimo coins of 1843–1844 are of the same type as those of 1840: 5c, 5·38 g, 24 mm (≈6000 dated 1844); 20c, 21·50 g, 24 mm (15,000 dated 1843, 10,000 dated 1844); and, 40c, 43·00 g, 40 mm (65,000 dated 1844).
The peso fuerte of 1844 was 27·07 g, 35 mm, ≈0·875 fine (23·69 g fine silver), and was the only silver coin minted at Montevideo. It was made by melting down silver objects donated by the Montevideo residents. Only about 1226 pieces were produced. First coins were struck on January 19. or 20th., and given to Government authorities on Jan. 22nd. Official issue date was set on 15 February 1844, possibly after production ended. It was a siege coin, issued to city Government be able to pay defending troops and supplies. Its circulation outside the city of Montevideo was prohibited by the government of Gen. Manuel Oribe.
1854–1856 Real Escudo = 10 Reales = 1000 Centésimos de real (for gold)
Patacón = 10 Reales = 1000 Centésimos de real (for silver)
History Legislation of 22 July 1854 authorized the minting of gold coins (Law 414) of 1, 2, and 4 escudos (10, 20, and 40 reales), silver coins (Law 415) of , , and 5 reales (125, 250, and 500 centésimos), and copper coins (Law 418) of 10, 20, and 40 centésimos. Law 414 defined the gold 10 reales (escudo) as 1·6175 g, 0·875 fine, or 1415·325 mg fine gold, giving a silver:gold ratio of ≈14.75:1. The chaotic internal situation, complicated by strife in Brazil and Argentina, intervened, so that the gold and silver coins were never produced, and the authorized copper coinage was produced in a modified form. The mint in Montevideo closed early in 1855; thereafter, Uruguay's coins were minted abroad.
Paper The Treasury issued promissory notes (vales de Tesorería), dated 12 July 1855, in denominations of 2 and 4 reales, and 1, 5, 10, 25, 50, and 100 pesos.
Coins Two copper denominations were struck at the Montevideo mint in 1854–1855: 5c, 5·38 g, 24 mm (120,000 dated 1854, 8000 dated 1855); and 20c, 21·50 g, 38 mm (50,000 dated 1854, 30,000 dated 1855). Rare patterns exist of the 40-reales gold piece.
1856–1863 Peso fuerte and Patacón Onza de oro = 16 Pesos (Patacones) = 15,360 Centésimos (for gold)
Patacón ($) = 8 Reales = 960 Centésimos (for old silver)
Peso fuerte ($F) = 10 Reales = 1000 Centésimos (for new silver)
History In 1856 the Onza de oro was revalued from 16,000 centésimos to 15,360, and the patacón to 960 centésimos to reflect new monetary legislation. Laws 523 and 524 of 13 June 1857 modified laws 414 (gold) and 415 (silver) of 1854. The same standard of weight and fineness was retained, but the denomination was changed to peso fuerte, with proposed coins of , , , and 1 peso fuerte in silver, and 2, 4, 8, and 16 pesos fuertes in gold.
Uruguay's first postage stamps appeared in October 1856 for use on mail coach routes operated by Anastasio Lapido; the denominations were 60 and 80 centavos and 1 real (= 120 centavos). A second series followed in March 1858 in denominations of 120, 180, and 240 centavos (centésimos). Regular government stamps appeared in July 1859 in denominations of 60, 80, 100, 120, 180, and 240 centésimos.
Paper New banking regulations were passed in 1851 and the first private banknotes appeared in circulation in 1857. Bank notes of this period were denominated in the onza de oro of 15,360 centésimos and its fractions.
Banco Mauá & Cia. of Montevideo was a branch of the Brazilian bank of that name; it enjoyed special privileges of note issue as the financial agent of Brazilian policy. It put notes of 240, 480, and 960 centésimos into circulation in September 1857. A second series followed in 1861 with the same three denominations and also a note for 1 onza de oro,
Banco Comercial of Montevideo was founded in 1857 by a group of merchants. It was a successful and well-run bank that issued a series of notes dated 1 October 1858 for 120, 240, 480, and 960 centésimos and 1 onza de oro. A second issue, dated 1 January 1860 was for 240, 480, and 960 centésimos.
El Banco del Salto issued denominations of 120, 480, and 960 centésimos, dated 1 October 1858.
Banco de Paysandú issued notes for 120, 240, 480, and 960 centésimos, printed in Montevideo and dated 27 September 1862.
Coins No gold or silver coins were minted during this period, but copper coins of the same design, denomination, and weight as those of 1854–1855 were minted at Lyon, with the date 1857: 5c (0·576 million), 20c (0·576 million), 40c (1·08 million).
1863–1875 Peso and Doblón Doblón de oro = 10 Pesos plata = 1000 Centésimos (1863–1868)
Peso = 100 Centésimos
History The National Currency Decree of 23 June 1862 (with effect from 1 January 1863) made the gold doblón and the silver peso the national currency (moneda nacional). It defined the doblón de oro (which replaced the onza de oro) as weighing 16·97 g, 0·917 fine (one gold peso equivalent to 1556·149 mg fine gold), and equal to 10 silver pesos, each of 25·48 g, 0·917 fine (23·365 g fine silver), giving a silver:gold ratio of 15:1. The peso was revalued to 100 centésimos, with 1 new centésimo equal to 10 old centésimos de real, the new currency being known as Sistema centesimal (as opposed to the old Sistema real).
The National Currency Decree declared that until a national coinage could be minted, foreign silver and gold coins should continue to circulate at their then current values (adjusted to conform to this decree), A number of foreign coins (and their multiples and fractions) were specified and rated. Foreign silver coins rated $1·00 (one peso) were the pesos of Spain and Mexico, the Brazilian patacón of 960 reis (25 g, 0·917 fine), and the Brazilian two-milreis piece (25·495 g, 0·900 fine). The 5-franc piece of France and the 5-lire of Italy, both 25 g, 0·900 fine, were rated 90c. The gold onza of Spain and the Americas (27·450 g, 0·875 fine) was rated $15·36; the 20-reis of Brazil (17·926 g, 0·917 fine), $10·56; the Napoleon of 20 francs and the 20-franc piece of Sardinia (6·451 g, 0·900 fine), $3·60; the British sovereign (7·981 g, 0·917 fine), $4·70; the Spanish doblón of 100 reales vellón (8·336 g, 0·901 fine), $4·80; the Chilean condór (15·253 g, 0·900 fine), $9·00; the American eagle (16·717 g, 0·900 fine), $9·60.
Postage stamps of 6, 8, 10, and 12 (new) centésimos replaced the old denominations of 60, 80, 100, and 120 in February 1864.
Uruguay was in a state of turmoil and civil strife; there were repeated runs on the banks. Mauá Bank survived a brief run in January 1864. It floated a loan for the government of Gen. Flores in December, and when it suffered another run in 1865, the government suspended specie payments for the two note-issuing banks and demanded forced loans. Banco Comercial demonstrated its soundness during the panic that followed. After the crisis, a new banking law was passed, which was the signal for a boom in bank creation. Suspension of convertibility ended in June.