1 Real – Peru

In 1659, the Viceroyalty of Peru was grappling with a severe and multifaceted currency crisis rooted in the previous century. The primary source of wealth was silver, mined from the legendary mountain of Potosí (in modern-day Bolivia), which was minted into coins at the royal mint in Lima and in Potosí itself. However, the system was plagued by widespread debasement and fraud. Since the 1640s, a massive scandal known as the "False Coinage" (Moneda Feble) had unfolded, where corrupt officials at the Potosí mint, in collusion with private silver merchants, produced millions of pesos that were severely underweight in silver content. By 1659, these adulterated coins dominated circulation, destroying trust in the currency both within the viceroyalty and in international trade.

The economic consequences were devastating. The influx of poor-quality coinage caused rampant inflation, as merchants raised prices to compensate for the weakened currency. This eroded the purchasing power of salaries, particularly for soldiers, bureaucrats, and the urban poor, leading to social unrest. Furthermore, legitimate, high-quality Spanish pesos, the pillar of global trade at the time, were being hoarded or exported, leaving the local economy to function with a debased medium of exchange. This crisis severely damaged the credit of the Peruvian treasury and disrupted the vital flow of silver that financed the Spanish Empire, attracting the urgent attention of the Crown.

In response, the Spanish monarchy had begun a drastic reform. In 1650, a new viceroy, the Count of Alba de Liste, was sent to investigate, leading to the arrest and execution of the main perpetrators. By 1659, a major recoinage was underway under Viceroy the Count of Santisteban. Authorities were attempting to recall and melt down the false coins to be reminted to the proper standard. This process, however, was economically painful and slow, causing liquidity shortages. Thus, in 1659, Peru was in a transitional period of crisis management, struggling to purge its monetary system of fraud and restore the integrity of the silver peso upon which its wealth and Spain's imperial finances depended.