FACTS CURRENCY: CHILEAN PESO (CLP) ISO 4217 CODE: CLP PEGGED: NONE COINS: 1, 5, 10, 50, 1OO, 500 PESOS BANKNOTE: 1000, 2000, 5000, 10000, 20000 CENTRAL BANK OF CHILE
Chile is a country in South America and peso is its currency. Since 1975, the currency is under circulation. The years in which previous version was circulated are 1817 and 1960. There are sub-divisions of the currency in the form of centavos and 1 Chilean peso is equal to 100 centavos. These days there is no circulation of the centavos coins. The currency exchange rate of the Chilean peso to US dollar is around 510 Chilean pesos per US dollar.
The first ever Chilean peso was launched in the year 1817 when it was pegged with Spanish colonial real. The currency exchange rate at that time was 8 Spanish colonial real. By 1851, there was subsequent division in real and escudo. After that it was pegged with French francs in currency exchange and also to the British pounds. The peso’s value fall after year 1932 and in year 1960, escudo was replaced by peso with the currency exchange rate of 1 escudo equalling to 1000 pesos.
Coins There was launching of different denomination coins in the form of 0.25, 0.5, 1 and 2 real between the years 1817 to 1851. They were made of silver. In addition to this, there was also 1 peso and gold coins for the denomination of 1, 2, 4 and 8 escudos.
Between the year 1851 and 1853, there was the introduction of the full fledged decimal coinage. After that the copper coins were introduced for all the coinage. From year 1907 to 1933, there were many changes in the introduction of the different denomination, especially in centavo and peso coins. Year from1954 to 1959 saw the ending of the first version of peso in the form of aluminium pesos in the denomination of 1, 5, and 10.
Then in 1975 to 1983, there was downfall of the centavo coins and they become absolutely redundant with the passing times. It was attributed to the inflation that leads to the coinage of higher denomination like 100, 500 peso.
Banknotes The paper currency comes into practice in year 1844. The treasury of the province of Valdivia was responsible body. In the preceding years, various banks issued paper money in various denominations like 1, 2, 5, 10, 20, 50, 100 pound sterling. Year 1898 saw the end of the private paper money on the wake of government intervention.
In the year 1935, central bank of Chile becomes the prime body that was held responsible for the issuing of the banknotes. By 1927, there were billed provisional bank notes issued and year 1947 lead to the cessation of the 1 and 20 peso notes.
Initially, the denomination on bank notes were that of 1, 5, 10, 20, 50, 100, 500, 1000, 5000 and 10 000 pesos. In year 1959, there was introduction of the 50 000 peso note as well but was replaced in 1976.
The inflation has enforced the maximum usage of the higher denomination of peso notes. There was redesigning of the bank notes in year 2009-10.