Colombian Peso

Overview

The Colombian Peso (COP) has been the official currency of Colombia since 1837. The symbol used for the Peso is $. Banknotes are issued by the Banco de la Republica. A subdivision of the Peso is the centavo; 1 peso = 100 centavos.

Economy

• Colombia has a free-market economy.
• The country exports petroleum, cut flowers, nickel, coal, emeralds, bananas, and coffee.
• The main import products are consumer goods, fuel, paper, chemicals, coffee, and apparel.
• The unemployment rate is 11.2%.
• Colombia has been showing positive growth over the last three years.
• The service industry accounts for 52.7% of the total GDP.

History

• The first was Peso was issued in 1837, replacing the Real at a rate of 8 Reales = 1 Peso.
• In 1847, the currency was decimalized and 1 Peso = 10 Reales.
• In 1871, Colombia became part of the gold standard and the country pegged the peso to the French Franc at 5 French Francs = 1 Peso.
• After 1888, the Peso started to depreciate, due to increased printing costs.
• From 1907 to 1914 Peso coins were issued at a fixed rate of 1 coinage Peso = 100 Pesos Moneda Corriente.
• In 1915, the new Peso Oro paper currency was introduced replacing old paper Pesos, also at the rate of 1 Peso Oro = 100 old Pesos.
• In 1931, Colombia changed its peg to the US Dollar at 1 USD = 1.05 Pesos.
• In 1993, the word Oro was removed and the currency is now known as the Peso.
• The Colombian government is debating whether to reintroduce a new Peso that is worth 1,000 old Pesos.