Peruvian sol

The sol (; plural: soles; currency sign: S/) is the currency of Peru; it is subdivided into 100 ''céntimos'' ("cents"). The ISO 4217 currency code is PEN.

The sol replaced the Peruvian inti in 1991 and the name is a return to that of Peru's historic currency, as the previous incarnation of sol was in use from 1863 to 1985. Although ''sol'' in this usage is derived from the Latin ''solidus'' (English: solid), the word also means "sun" in Spanish. There is thus a continuity with the old Peruvian inti, which was named after Inti, the Sun God of the Incas.

At its introduction in 1991, the currency was officially called ''nuevo sol'' ("new sol"), but on November 13, 2015, the Peruvian Congress voted to rename the currency simply ''sol''.

History

Currencies in use before the current Peruvian sol include:
* The ''Spanish colonial real'' from the 16th to 19th centuries, with 8 reales equal to 1 peso.
* The '' Peruvian real'' from 1822-1863. Initially worth peso, ''reales'' worth peso were introduced in 1858 in their transition to a decimal currency system.
* The '' sol'' or ''sol de oro'' from 1863-1985, at 1 sol = 10 reales.
* The ''inti'' from 1985-1991, at 1 inti = 1,000 ''soles de oro''.

Due to the bad state of economy and hyperinflation in the late 1980s, the government was forced to abandon the inti and introduce the sol as the country's new currency. The new currency was put into use on July 1, 1991, by Law No. 25,295, to replace the inti at a rate of 1 sol to 1,000,000 intis. Law No. 25.295, ''Unidad Monetaria Nuevo Sol'', January 3, 1991 Coins denominated in the new unit were introduced on October 1, 1991, and the first banknotes on November 13, 1991. Since that time, the sol has retained an inflation rate of 1.5%, the lowest ever in either South America or Latin America as a whole. Since the new currency was put into effect, it has managed to maintain an exchange rate between S/2.2 and S/4.13 per US dollar.

Coins

The current coins were introduced in 1991 in denominations of 1, 5, 10, 20, and 50 ''céntimos'' and S/1. The S/2 and S/5 coins were added in 1994. Although one- and five-''céntimo'' coins are officially in circulation, they are very rarely used. For this reason the aluminium one-''céntimo'' coin, introduced in December 2005, was removed from circulation on May 1, 2011. Also, five-''céntimos'' coin was removed from circulation on January 1, 2019.

For cash transactions, retailers must round down to the nearest ten ''céntimos'' or up to the nearest five. Electronic transactions will still be processed in the exact amount. An aluminium five-''céntimo'' coin was introduced in 2007. All coins show the coat of arms of Peru surrounded by the text ''Banco Central de Reserva del Perú'' ("Central Reserve Bank of Peru") on the obverse; the reverse of each coin shows its denomination. Included in the designs of the bimetallic S/2 and S/5 coins are the hummingbird and condor figures from the Nazca Lines.

Banknotes

Banknotes for S/10, S/20, S/50, and S/100 were introduced in 1990. The banknote for S/200 was introduced in August 1995. All notes are of the same size (140 x 65 mm) and contain the portrait of a well-known historic Peruvian on the obverse.

A new series of banknotes was issued starting in 2021, beginning with the S/10 and S/100 notes in July 2021 and followed by the S/20 and S/50 notes in July 2022. A S/200 note is expected to follow at a later date.

See also

* Numismatic series Wealth and Pride of Peru
* Numismatic series Natural Resources of Peru
* Economy of Peru
* Peruvian inti

References

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External links

Banknotes and Coins from the Central Bank of Peru

Currency in Peru

{{DEFAULTSORT:Peruvian Sol
History of Peru
Sol
Currencies introduced in 1991
Currency symbols