Universidad Autónoma de Nuevo León

Facultad de Contaduría Pública y Administración

Licenciatura en Negocios Internacionales

Abastecimientos

Real de ocho

Nombre del profesor:

Armando Salas Escamilla
Grupo:
5ai
Alumno:
Luis Antonio León Veloz
Matricula:
1913312

1
 INTRODUCTION

In the next survey we will discuss the real eight, which is a silver coin Worth
8 realis, minted by Catholic monarchy after currency reform in 1497, the
Spanish Real was established. Due to its widespread use at the end in the
eighteenth century in Europe, throughout the Americas and the Far East, it
became the first Currency used in the world. It was the first legal tender in the
United States until 1857 its use is prohibited by law. In addition, Shinhachi's
model is reproduced as The emergence of the US dollar, Canadian dollar,
Chinese yuan, Japanese yen Japanese Yen, American Independent Republic
Peso, Philippine Peso, etc. other currencies around the world.

Apart from its first origin, which will be given more information in the
following pages and what it caused and the impact it had on the world, its
heyday and diffusion will be discussed. It was thanks to the fact that the
monarchy prevented free trade that smuggling began to take place, this
allowed the monetary pieces minted in the minds of the Hispanic Monarchy to
circulate through places outside the Spanish jurisdiction.

The Thirteen British Colonies in North America soon came to use eight reals
due to the fineness of their silver content and their relative abundance on the
market, greater than the currency of their own mother country. Also, the
Spanish trade with China, using the Philippines as a base, made the 8-pound
real also spread in Southeast Asia, it was then that the 8-pound real became
the most widely spread currency during the colonial period. In America, and
because of their high intrinsic value as well as their fineness, they continued to
be used in North America and Southeast Asia until the nineteenth century.

2
 HISTORY OF THE FIRST GLOBAL CURRENCY

Real de ocho
The Hispanic Monarchy was for 300 years uninterruptedly the largest mint in
the world. The real of eight was established as the universal currency of
commerce during that time. The longest duration ever for a benchmark
currency. The so-called real de ocho, Spanish dollar, hard weight or simply
hard, minted from the mid-16th century, was the most important currency in
the world until well into the 19th century. It served as a currency on which to
reference the circulating coins of the other states of the time and to be able to
participate in the trade of the five continents.

The real of eight was the currency of the empire and it outlived it by far. In the
United States, it was legal tender no less than 1857. In addition, the reals of
eight were the first universal currency, since they not only circulated
throughout Europe and America, but also in Asia. Thanks to its great prestige,
it was the main value used for large payments and financial operations in
which, for the first time, the various continents were to be involved.

The quality of its silver, obtained in American mines and the enormous
volume with which it was minted, made the coin the most accepted in all
international markets during the Modern Age.

Diffusion around the world of the real eight

For more than three centuries, the eight-point real was not only an
international currency, it was also the main export product in the northern
states of the New World, the Antilles, the Philippines, China, Japan,
Indochina, Korea, India and the Straits. Malays also used the real of eight in
commercial transactions with the East, England and France.

3
It was widely disseminated that all European merchants who purchased goods
in the East had to pay for their purchase in Spanish silver coins, so that both in
the Portuguese caravels and later in the ships of the Dutch, British, French or
Danish companies, it carried the real of eight as currency of exchange, and
this continued to occur well into the nineteenth century.

Spanish currency also circulated in the Thirteen British Colonies in North

America long before they declared their independence. In the Thirteen
Colonies, the Spanish currency circulated normally and was first known as the
Spanish thaler, later passing to the Spanish dollar, and later to the Spanish
dollar. The reals of eight were known as taleros, due to their resemblance to
the strong Austrian thaler coin.

The real de an ocho had a face value of eight real in Spain and its overseas
territories, but the need for fractional currency often caused the pieces to be
physically cut into four or eight pieces, to achieve smaller change. Outside the
Spanish universal monarchy, it was very difficult to obtain Spanish silver
coins with denominations smaller than the real of eight.

Thus, the physical partitioning of the coin was the only way to obtain fractions
and subsequently reseal them for use. Many currencies, such as those of the
countries that became independent in America, the Canadian dollar, the
Chinese yuan, the Japanese yen, the Philippine peso and others around the
world, were initially based on the real of eight.

This global acceptance was the origin of the “$” symbol that was used in
account books around the world, imitating in a simplified way the columns
and bands that appeared in the currency of the real of eight. The world's
leading silver producers were the Spanish Indies and Japan, not Europe; and
China was the main destination market for silver.

4
Japan also had a significant production, but the Spanish empire led the market.
Thanks to the Manila Galleon, coins from Spain also arrived in large
quantities in the Philippines, the great trading market in Asia. They did it in
the galleons that traveled the Acapulco-Manila route and returned carrying
expensive porcelain and silk from China, along with spices and other luxury
items from India and other exotic countries, destined for the markets.

Americans and Europeans.

It is known that five million pesos a year left the Spanish Indies for foreign
kingdoms, from New Spain via Acapulco to China, or from Paraguay either to
Brazil, or from the other Spanish dominions through the many secret
contraband mines. Asia and even Africa were the destination of Hispanic
currency, because crossing the oceans it was exchanged for exotic products
from China, Japan, East India, Persia, Constantinople, Greater Cairo and
Barbary, and it was known that it hardly circulated among those remote
people’s other currency than reals of eight and Castilian doubloons.

One of the main markets for this silver, in the form of eight-real coins, was
China and the Asian peoples, who accepted this currency for its intrinsic
value. The Spanish brought thousands of tons of silver into China between the
mid-sixteenth and mid-seventeenth centuries, adding to the quantities of the
same metal being imported from Japan.

The ending of the real de ocho

The end of the real de ocho came when it surpassed the colonial era of
Spanish rule and minted in the mint (mint) of Mexico, the only one authorized
to mint. The royalists created provisional mints in Chihuahua, Durango,
Guadalajara, Guanajuato, Zacatecas, Oaxaca, Valladolid, Real del Catorce and
Monclova.

With the end of the Hispanic Empire, the Real maintained its competitive
power and was the reserve currency that was hoarded in China, India, and the

5
Middle East. The real of eight was still the most universal currency in the mid-
nineteenth century, and even at the end of the nineteenth century, the role
played by the real of eight was notorious in the East.

Then, during part of the 19th century until the middle of the 20th, the pound
sterling surpassed the real by eight as the Western reference currency. In the
United States in July 1944, the US dollar replaced the pound sterling as the
world reserve currency, ending World War II at the Bretton Woods conference
held in the United States.

CONCLUSION
Thanks to this study, it is easy to see that the discovery of the Americas and
The arrival of the precious metal had an impact on the expansion of the
currency market, the transformation of a world economy that is no longer an
axis of trade it is the world of money.

As mentioned before, the first world currency was the real de ocho, a silver
Eight real coins minted by the Catholic monarchy in coin denominations very
important reforms, and thus have a huge impact USD, CAD, CNY, JPY, Peso
Independent American Republic, Philippine Peso and many other currencies
around world.

For example, the dollar is currently considered to have reserve currency status,
allowing the United States to run larger trade deficits with limited economic
impact if the largest foreign holders of dollars continue to accumulate them, or
the euro, which is currently the second largest currency in the world. Most
used in international reserves, with an approximate share of 27%, which
places it as the second most important reserve currency after the US dollar. All
this because it was the real of eight of the Spain’s that marked the way, lasted
longer and covered more territories where there are different types of
currencies.

6
 REFERENCES
Damian, P. (2017, 26 de octubre). El real de a ocho español: tres siglos de la
moneda más universal de la historia Oroinformación..
https://oroinformacion.com/el-real-de-a-ocho-espanol-tressiglos-de-la-
moneda-mas-universal-de-la-historia/

History REAL8. (s. f.). REAL8 Global CryptoCurrency.

https://real8.org/about-real8/history/

Hurtado, F. (s. f.). El real de a ocho: la primera divisa mundial - Geografía

Infinita. Geografía Infinita.
https://www.geografiainfinita.com/2020/07/el-realde-a-ocho-la-primera-
divisa-mundial/

López Cabía, D. (2021, 4 de abril). El real de a ocho español: el dólar de su

época Economipedia.
https://economipedia.com/actual/elreal-de-a-ocho-espanol-el-dolar-de-su-
epoca.html

Zarate, A. (s. f.). Real de a ocho: el dólar español que dominó el mundo.
Merca2.es.
https://www.merca2.es/2017/01/08/real-ocho-dolar-espanoldomino-mund