1 Real – Mexico

In 1825, the newly independent Republic of Mexico faced a profound and destabilizing currency crisis, a direct legacy of the decade-long War of Independence (1810-1821). The conflict had devastated mines, particularly the vital silver-producing regions of Guanajuato and Zacatecas, crippling the colony's primary source of wealth and the basis of its currency. To finance the war, both royalist and insurgent forces had resorted to issuing vast quantities of debased copper coins (tlacos and pilones) and paper money, flooding the market with unreliable currency and destroying public trust in the monetary system. The result was a chaotic multi-currency environment where the value of money varied wildly by region and material, severely hampering domestic trade and economic recovery.

The federal government, established under the 1824 Constitution, recognized that a unified national currency was essential for sovereignty and economic stability. In 1825, the administration of President Guadalupe Victoria, aided by Finance Minister José Ignacio Esteva, embarked on an ambitious monetary reform. The cornerstone was the creation of the peso fuerte (strong peso), a silver coin intended to be the stable unit of account, backed by the resurgent but still struggling mining sector. Simultaneously, the government authorized the first official minting of copper centavo coins to facilitate small, everyday transactions, hoping to retire the plethora of illegitimate tokens in circulation.

However, these reforms in 1825 were more aspirational than immediately effective. The scarcity of precious metals, a depleted treasury, and the continued circulation of old colonial and revolutionary coins meant the peso fuerte could not quickly establish dominance. Furthermore, the government's own financial desperation led it to continue issuing debt instruments and borrowing heavily from foreign creditors, planting the seeds for future crises. Thus, while 1825 marked a critical first step toward monetary order, Mexico's currency situation remained fragile, characterized by a confusing mix of old and new coins, underlying bullion scarcity, and a lack of broad public confidence—a reflection of the immense challenges of building a nation from the ruins of colonial rule.