This article analyzes the role of productivity as a determinant of the evolution of the peseta real exchange rate in the period 1960-1996 in relation to the eight countries with which Spain maintains more intensive commercial links. In accordance with the Balassa-Samuelson statement, it is found that the differential growth of productivity is a clear determinant of the long-term real exchange rate, one which explains both the appreciation of the peseta in real terms in relation to seven of the eight countries considered and its depreciation with respect to Japan, the eighth country considered.

Keywords: real exchange rate, productivity, purchasing power parity.