2 Reales – State of Oaxaca

In 1812, the currency situation in Oaxaca was defined by profound instability and fragmentation, a direct consequence of the ongoing Mexican War of Independence. The region, under the control of royalist forces for much of the year, operated within the official Spanish colonial monetary system. This system relied heavily on scarce silver coins minted in Mexico City, such as pesos and reales, and was plagued by a chronic shortage of small-denomination currency for daily transactions. This scarcity crippled local markets and trade, creating a persistent economic hardship for the populace.

The situation was further complicated by the capture of Oaxaca City by the insurgent army of José María Morelos in November of 1812. While Morelos's brief occupation lasted only a few months, it represented a direct challenge to royalist monetary authority. Seeking to fund his campaign and legitimize his government, Morelos authorized the issuance of his own copper coinage. These crude, emergency coins, minted in Oaxaca, were a symbolic and practical assertion of sovereignty, intended to circulate alongside—and ultimately displace—royalist currency. However, their forced value and limited acceptance created confusion and distrust in an already strained economy.

Therefore, by the end of 1812, Oaxaca found itself at a monetary crossroads, with two competing currencies vying for legitimacy. The populace navigated a precarious landscape of scarce official silver, insurgent copper, and likely a resurgence of older, defaced coins or even commodity-based barter. This monetary duality mirrored the broader political conflict, transforming everyday commerce into a reflection of the civil war, where the coin in one's pocket signaled either loyalty to the Crown or support for the insurgency.