5 Pesos – Uruguay

In 1930, Uruguay's currency situation was characterized by relative stability amidst global economic turmoil, a testament to the nation's prosperous "Batllista" welfare state model. Unlike many countries that abandoned the gold standard after World War I, Uruguay had officially maintained a gold-exchange standard since 1896, pegging the Uruguayan peso to both British pounds and Argentine pesos, which were themselves linked to gold. This system, managed by the state-owned Banco de la República, provided a period of monetary stability and confidence, underpinning Uruguay's strong export-led economy based on beef, wool, and hides.

However, this stability faced mounting pressures. The onset of the Great Depression in 1929 caused a sharp decline in global demand and prices for Uruguay's primary exports, severely reducing foreign currency earnings. This triggered a balance of payments crisis, straining the gold and foreign exchange reserves needed to maintain the peso's parity. Consequently, 1930 marked the beginning of the end for the classical gold standard in Uruguay, as the government and the Banco de la República were forced to intervene heavily to defend the peg, imposing exchange controls and beginning a gradual process of devaluation.

Thus, while the currency regime was formally still intact in 1930, it was operating under severe duress. The year represented a critical juncture, transitioning from the stable pre-Depression order to a new era of managed currency, increased state intervention in finance, and eventual abandonment of the gold standard in 1932. The economic shock exposed the vulnerability of Uruguay's export-dependent model and set the stage for a decade of monetary adjustment and economic nationalism.