1 Centavo Sintra

🔸Devaluation of the escudo during the 1st Republic and WW1🔸

The Implantation of the Republic (October 5, 1910) brought profound changes to Portuguese society, both in its political, social, cultural and economic-financial dimensions. In this respect, the change in currency, with the real being replaced by the escudo, was the most visible expression.

However, in addition to the political and governmental instability of the 1st Republic, the start of WW1 led to a serious economic crisis with a shortage of goods and a substantial increase in prices.

“Portuguese inflation from 1918 to 1924 was one of the highest in Europe [...] In 1914, the banknote in circulation with the highest value was 100 escudos. In 1920, its real value was down to 20 escudos from 1914. That's why the bank started issuing 1000 escudo notes, which were in fact equivalent to 200 escudos in 1914”

Monetary devaluation was felt on a daily basis, the metals used to mint coins became overvalued and these were hoarded as the value of the metal was higher than its face value.

For these reasons, paper notes were the only money in circulation at the time.

Faced with the need for currency for everyday transactions, on 1917 the government authorized the Mint to issue notes to replace the 5 and 10 centavos coins, and the St.ª Casa da Misericórdia to issue 5 centavos notes. $20 notes were also printed starting on 1922.

Fiduciary bills were issued all over the country (in all, 178 municipalities),as they facilitated small transactions within local communities.

Their circulation was banned on December 7, 1922.

Source and more info in:  https://cm-sintra.pt/images/01-CMS2018/noticias/pdfs/Papel_moeda_municipal_emitido_em_Sintra_h_100_anos.pdf