Peseta - Replacement By The Euro

Replacement By The Euro

The peseta was replaced by the euro (€) in 1999 on currency exchange boards. Euro coins and notes were introduced in January 2002, and on 1 March 2002 the peseta lost its legal tender status in Spain, and also in Andorra. The conversion rate was 1 euro = 166.386 ESP. Prices in many Andorran supermarkets and other retail establishments are still shown dual-priced in euros and pesetas or in euros and French francs.

Peseta notes and coins that were legal tender on 31 December 2001 remain exchangeable indefinitely at any branch of the central bank. According to that entity, pesetas to a value estimated at 1.7 billion euros were never converted to euro.

Huge amounts of pesetas of dubious provenance are believed to have helped to fuel a cash-based money laundering real estate boom just prior to, and after, the conversion to the euro. Mafia and criminal holdings of billions of pesetas were poured into massive real estate projects in Spain and elsewhere; the real estate could then be legally sold to obtain euros.

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