Spanish peseta in the context of "French franc"

A caudillo (/kɔːˈdiː(l)joʊ, kaʊˈ-/ kaw-DEE(L)-yoh, kow-, Spanish: [kawˈðiʎo]; Old Spanish: cabdillo, from Latin capitellum, diminutive of caput "head") is a type of personalist leader wielding military and political power. There is no precise English translation for the term, though it is often used interchangeably with "military dictator," "warlord" and "strongman". The term is historically associated with Spain and Hispanic America, after virtually all of the regions in the latter won independence in the early nineteenth century.

The roots of caudillismo may be tied to the framework of rule in medieval and early modern Spain during the Reconquista from the Moors. Spanish conquistadors such as Hernán Cortés and Francisco Pizarro exhibit characteristics of the caudillo, being successful military leaders, having mutual reliance on the leader and their supporters, and rewarding them for their loyalty. An important characteristic of the caudillo is their charisma, which drew in followers who could be utilized to change the political climate and shape state-formation in the post colonial era. The followers of caudillos, called gauchos, were common people whom the caudillos could charm and persuade into joining their cause. Often the caudillo would take on the role of the provider as a substitute for the shortcomings of those in the government. It created a type of father-child bond between the caudillo and gaucho that strengthened loyalties and made the caudillos powerful. However, the paternalist view towards the relationship between the caudillo and the gaucho assumes that the caudillo has all of the power in the relationship and ignores that much of that power comes from the gaucho's decision to follow a particular caudillo.

The real (English: /ɹeɪˈɑl/ Spanish: /reˈal/) (meaning: "royal", plural: reales) was a unit of currency in Spain for several centuries after the mid-14th century. It underwent several changes in value relative to other units throughout its lifetime until it was replaced by the peseta in 1868. The most common denomination for the currency was the silver eight-real Spanish dollar (Real de a 8) or peso which was used throughout Europe, America and Asia during the height of the Spanish Empire.

General Miguel Primo de Rivera's dictatorship over Spain began with a coup on 13 September 1923 and ended with his resignation on 28 January 1930. It took place during the wider reign of King Alfonso XIII. In establishing his dictatorship, Primo de Rivera ousted the liberal government led by Prime Minister Manuel García Prieto and initially gained the support of King Alfonso XIII and the army. During the Military Directory (1923–1925), the dictatorship created the official party of the regime, the Unión Patriótica (UP). It also censored the Spanish press and worked to eliminate separatism in Catalonia. Under Primo de Rivera's dictatorship, Spain won the Rif War, where Spanish forces fought Riffian tribes in Morocco.

Primo de Rivera's dictatorship established the Civil Directory in 1925. During the Civil Directory, Primo de Rivera created the National Assembly, where Spanish corporations had their interests represented. The dictatorship formed good relationships with Italy and increased its interactions with countries in Latin America. It invested heavily in Spanish infrastructure, such as roads and railways, and expanded labour laws to assist nursing mothers in the workforce. Throughout the dictatorship, women became an increasing percentage of Spain's skilled labour. In 1929 an economic downturn occurred, and the value of the Spanish peseta fell. The army's grievances with Primo de Rivera grew, and seeing this, the King stopped supporting the dictatorship. Primo de Rivera resigned in 1930, ending his dictatorship, and General Dámaso Berenguer succeeded him before Spain's Second Republic was established in 1931.

The German–Spanish Treaty of 1899, (Spanish: Tratado germano-español de 1899; German: Deutsch-Spanischer Vertrag 1899) signed by the German Empire and the Kingdom of Spain, involved Spain selling the majority of its Pacific possessions not lost in the Spanish–American War to Germany for 25 million pesetas (equivalent to 17 million Marks).