The Sol had lost a lot of value because of high inflation in Peru. By dropping three zeroes and renaming the national currency, the Peruvian government hoped to normalise the monetary situation.
In 1985, the Banco Central de Reserva del Perú introduced banknotes in denominations of 10, 50, 100 and 500 intis. Peruvian coins in 1985 were 0.01, 0.05, 0.10, 0.20, 0.50, 1 and 5 intis. Peru’s new government led by Alan García saw good results at first, but it wasn’t long until inflation would come back with a vengeance.