During the second half of the twentieth century, the Chilean monetary system underwent major changes, reflecting the country’s economic and political transformations. The peso remained in use until the middle of the century, although inflation and economic difficulties led to a rethinking of the national monetary structure.

In 1960, during the government of Jorge Alessandri Rodríguez, the peso was replaced by a new monetary unit: the escudo, equivalent to 1,000 old pesos. This change sought to simplify transactions and stabilise the monetary system. The new coins introduced updated designs and were struck in different metals, such as aluminium, nickel and copper alloys. As a temporary measure, old peso banknotes were overprinted with the new denomination in escudos, and for some years they circulated alongside banknotes issued directly in the new unit during the 1960s and 1970s.

During the government of Salvador Allende (1970-1973), coin designs were renewed once again, incorporating important figures from Chilean history. Among them, for the first time on Chilean currency, appeared a Mapuche figure: Lautaro, the leader of resistance during the Spanish conquest.

Despite these reforms, inflation continued to intensify in the following years. For this reason, in 1975, during the Military Government (1973-1990), the peso was re-established as the monetary unit, once again equivalent to 1,000 escudos. The coins issued during this period incorporated new motifs, such as the so-called “Angel of Liberty” and the national coat of arms, while banknotes began to feature portraits of historical figures including Diego Portales, Ignacio Carrera Pinto and Gabriela Mistral.

From 1990 onwards, Chilean currency has undergone various changes in design, size and materials, partly in response to the changing value of money. Some coins became smaller and lighter as their purchasing power declined, while certain banknotes, such as the 500-peso note, were replaced by coins. Denominations such as 1, 5, 10 and 100 pesos were also redesigned, and several banknotes began to be produced in polymer for the first time, a more durable material than traditional paper. These changes reflect the constant adaptation of the Chilean monetary system to the country’s economic and technological needs.