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Before the American Revolution , owing to British mercantilist policies, there was a chronic shortage of British currency in Britain's colonies. How the foreign exchange process works: We set the exchange rate for foreign currency purchases associated with many services, such as when you:. After , the peso was reduced in size and fineness, with further reductions in the s and s. This was supplemented in by the gold escudo , minted at 68 to a mark of gold 0.