Christine Isabel Z.

Rey APPLIED ECONOMICS

11 IRIS Performance Task 2

History of Philippine Currency

PRE-SPANISH REGIME
 Barter was the prevailing medium of exchange long before the coming of Spaniards in
1521, although there were already some coins circulating in our country as early as 8th
century. Commodity money such as rice which were considered as the principal primitive
curreny, coffee, sugar, silver nuggets which were accepted for their weights and purity and
the carabao which is our domestic animal were used as money.
 Between the 8th to the 14th century, the penniform gold barter ring, coin made of gold with a
diameter of about half an inch, was being used in trading with foreign merchants.
 Piloncito was made of crude rounded gold coin with the flat sides and with a diameter of about three
eights of an inch. It also circulated in the island. Dr. Gilbert Perez, who is an authority in Philippine money,
believed that the coin was from the Majapahit Empire which included some islands in the Philippines.

SPANISH REGIME

 The Spanish regime started in 1571 which coins were minted in Mexico like the silver cobs called cabo de bara de plata in
Spanish. It was known to be the first coins that were widely circulated during and after the reign of King Philip II.
 Coins that were minted in Mexico were circulated in the Philippines because the Philippines were governed through the
viceroy of Mexico.
 During the reign of King Philip V that was in 1700-1746, Spanish Barilla was the first coin minted in the Philippines. It was
made of brass and was one valued at one centavo. Incidentally, this is how we get the term barya.
 The world’s most famous coins, the Spanish dos Mundoz, and other golds and silver coins were brought by the Spanish
galleons that sailed across the Pacific from Acapulco Mexico to Manila. Spanish dos Mundoz were also known as Mexican
pillar dollar. They came in various
 denominations and bore the name Dos Mundos which indicated their widespread use in the two hemispheres.
 In 1766, a second coin was minted in the Philippines, known as coldilleras. It was about the half size of the Spanish barilla.
The circulations of these coins were brief because it was replaced by the round barillas. The barillas were made of copper
with a diameter of 18 millimeters. It had the inscription CIUDAD DE MANILA 1776
 Spanish government ordered from the mint of Spanish Mexico 6,000 silver quartillos in 1770.
 The cuatro coins of 1771 and 1782-1783 and the octavo of 1782-1783 bearing the bust of King Carlos III were circulated.
The quatros bearing the breast of Carlos IV were issued in 1789- 1807.
 During the reign of Ferdinand VII that was 1808-1833, the coins bearing his head were generally circulated. They were made
of silver and contained 8 reals. The inscription Ferdinand VII deigratia with the overse Fern VII P.L.G ED. Y. LACONST.
RE. LAS E. the reverse showed VTRAC. VLTR. PROTEG.
 In 1820-1830, the octavos and cuatros with the inscription beraing similar designs were circulated.
 Isabelitas were circulated when King Ferdinand VII died and his daughter, Queen Isabel II, became the new heir to the
Spanish throne. It made of silver with 24 millimeters in diameter.
 Chinese traders want silver and reals instead of gold coins because in 1880, the value of silver peso was higher than that of
the American gold dollar. The silver coins became the sole currency in the Philippines.
 Pesos Fuertes, the first Philippine bank note, issued by El Blamco Espanol-Filipino de Isabel II was printed in 1882. In 1885,
five pesetas silver coins were circulated and believed that it have been minted either in Madrid or Paris.
 In 1887, Isabel silver one real was issued and the word Manila was engraved below the neck of Queen Isabel II.
  During the reign of King Alfonso XIII (1874-1885) more coins were minted, the 10, 20, 50 centavo silver coins. In 1880-
1885, four gold coins bore the bust of King Alfonso III with the inscriptions: ALFONSO XIII POR LA 6 – DE DIOS 1880-
1885.
 In 1877, a royal decree was promulgated to allow Manila Mint to silver coins of the same fineness as the Spanish coins
of .835 instead of the .900.
 Gold coins were minted of the same weight and fineness as the previous one. It bore the bust of King Alfonso XIII.
 Spanish Government resumed the minting of the Isabelinas bearing the year 1868.
 In 1886-1931, fractional coins were minted in denominations of one centavo and two centavos made of copper specifically in
1894. It had the diameters of 20 and 30 millimeters respectively. It bore the inscriptions: Alfonso XIII P.L.G.D.D. REY C DE
ESPANA with the bust of King Alfonso XIII on its reverse.
 In 1897, great increase of world trade affected the country so that the several coins were received by the Philippines from the
Spanish government in Madrid to alleviate a shortage of coins.
 Trade was conducted by using irregular shaped coins after the arrival of the Spaniards in 1521, hammered in Mexico.
Varieties of these silver coins were popularly called “hilis kalamay”.

First Philippine Republic

 During the revolutionary republic of Emilio Aguinaldo was the issuance of paper money backed up by the resources of the
Philippines. These notes were in Spanish and bore the signature of President of
State at that moment, Pedro A. Paterno. These notes are also considered the
Second Treasury Certificates that were issued by the Philippines.
 On 1899, Aguinaldo issued coins minted in 1899 in denominations of two
centimos, made of copper. It had diameter of 25 millimeters and had the
inscription on the obverse: REPUBLICA FILIPINA around the upper half
portion, with the sun and three stars in the center, the rugged islands below the
sun, and the year 1899 at the bottom. The reverse showed the words:
LIBRATED on top and the words: CENTIMOS DE PESO on the bottom of the
coin.
 Island of Panay and Tarlac that had also revolted struck their own coins, but these coins were withdrawn from circulation and
declared illegal currency with the surrender of General Aguinaldo.

AMERICAN REGIME

 On August 28, 1898 the American Military Governor started to perform his official duties. After the termination
of the Treaty of Paris, the sovereignty of the United States over the Philippines was established.

Mexican Silver Dollar or Peso Containing Eight Reals

o Spanish-Filipino silver peso of eight reals; Filipino silver peseta which was equivalent to 1/5 of the peso; Filipino silver ten
centavo which is equivalent to 1/10 of the peso; Filipino copper centavo with an equivalent of 1/100 of a peso; Filipino
copper cuarto where 20 cuartos equal to one real and eight reals to a a peso were allowed to circulate .

American Dollar

o The American dollar was declared legal tender. Americans wanted to

make the U.S. Dollar the sole currency in the country but this met serious
objections from the Filipinos. Many businessmen at that time preferred the
Mexican Silver Dollar or peso to which they were accustomed. In line
with this, the US plan was dropped and a compromised was reached
whereby the Mexican peso circulated with the American Dollars as $1 to
P2 ratio. With the kinds of coins circulating at a certain ration in the
country the Philippines therefore was technically under the quasi-
bimetallic standard.
o With the issuance of Third Philippine Treasury certificates, the
American Dollars were gradually withdrawn from circulation. The treasury notes were payable to the bearer on demand in
United States silver or in gold coins of equivalent value.
o In 1901, a financial adviser who was Charles Connant, the Father of Philippine Currency, of the government recommended a
monetary system for the country which was the Gold Exchange Standard, by then the monetary unit was based on gold.
 o On March 2, 1903 American Congress acted upon this recommendation when they passed the Philippine Coinage Act in the
organic Act of July 1902, known as the Gold Exchange Standard.
o The law provided that the monetary unit value of the Philippines exactly one-half of the American Dollar. The Philippine
peso has a theoretical gold peso containing 12.9 grains of gold 0.9 fine meanwhile the American Dollar has 25.8 grains of
gold 0.9 fine. The law also provided for the coinage of silver pesos containing 416 grams of silver 0.9 fines. This silver peso,
which was half the value of the dollar or equivalent to 50 cent, was the basic currency unit. the coins with the denominations
of 50 centavos, 20 centavos (peseta) and 10 centavos all made the silver 0.9 fine, were circulated. Five centavos nickel, 1
centavo copper and one-half centavo copper were also circulated.
o During 1903-1906, the price of silver increased which resulted to exportation of the Philippine coin to China. This depleted
the supply of coins so people began to hoard it.
o The government recalled the coins from circulation and ordered to a smaller size and less fineness. Treasury Certificates in
various denominations of P500, P200, P100, P50, P20, P10, P5, P2 and P1 were issued. These certificates were representative
paper money because they represented the coins of equal value reserves.
o A Gold Standard Fund was established in American regime in order to maintain the parity of the silver peso with the
theoretical gold peso, part of this fund were deposited in the National Treasury of Manila and a greater part was in designated
depository banks in America.

Philippine Bank Notes

o With the volume of the trade is increasing due to the increased demand for Philippine products, the money supply of the
country was insufficient to meet the needs of trade. Philippine National Bank authorized to issue the Philippine Bank notes
for solution. These notes were not legal tender. It was payable to the bearer and the bearer was promised the corresponding
equivalent in treasury certificates, a silver peso or subsidiary coins.
o Later, the El Banco De Las Islas Filipinas, known today as the Bank of the Philippine Island was authorized to issue its own
bank notes. These notes were redeemable by the issuer. The notes were not made legal tender.

Dollar Exchange Standard

o In 1933, United States President Franklin Delano Roosevelt proclaimed the gold embargo in his territories and colonies.
United States abandoned the gold standard. Because of this, the gold drafts were no longer redeemable to gold coins but
could only be exchanged to United States dollars. Since the Philippine monetary unit was linked to US dollar, it had to utilize
a new standard called Dollar Exchange Standard. The Philippine peso was kept at par with dollar at an exchange rate of 2 of
1. Under the Gold Reserve Act of 1934, the dollar had to be devalued from 25.8 grains of gold .9 fines to 15 15l21 grains of
gold .9 fines. As an aftermath, the gold value of the Philippine peso had to be devalued from 12.9 grains of gold to 7 13/21 of
gold .9 fines since the Philippine Monetary System was linked to US. The 2:1 ration was maintained because the gold value
of the Philippine Peso was exactly half the gold value of the dollar. As a result, the Philippine gold reserves were increased by
40.94 percent. The Gold Standard Fund was made into Dollar Exchange Fund in order to keep the peso at par with the dollar.
New types of coins were circulated.

JAPANESE REGIME
 During World War II, when the Japanese forces occupied the Philippines, they issued a
great deal of paper bills called the Japanese War Notes. These were popularly known as
the “Mickey mouse” money. These bills had no reserves; neither backed up by any
government asset. People were forced to accept these bills and since there was no
control in its issuance; it became inflationary. The Philippines then was under the
Involuntary Paper Standards.

POST WAR PERIOD

 In July 4, 1944, after the American forces defeated the Japanese imperial army, the Philippine Commonwealth was
established under President Sergio Osmena. He issued executive order 4049 where he declared all Japanese currency in
Philippines were illegal. It was necessary that a new currency had to be issued.

English Series
 o The banknotes first issued by today's Bangko Sentral ng Pilipinas (formerly the "Central Bank of the Philippines") were the
VICTORY-CBP Overprints in 1949, which were merely overprints of older American-era banknotes. The first official
banknote series to be printed were the English Series in 1951.
o The English Series were Philippine banknotes that circulated from 1949 to 1969. It was the only banknote series of the
Philippine peso to use English as the language.

Pilipino series

o The Pilipino series banknotes is the name used to refer to Philippine banknotes issued by the Central Bank of the Philippines
from 1969 to 1973, during the term of President Ferdinand Marcos. It was succeeded by the Ang Bagong Lipunan Series of
banknotes, to which it shared a similar design. The lowest denomination of the series is 1-piso and the highest is 100-piso.
o This series represented a radical change from the English series. The bills underwent Filipinization and a design change.

Pilipino Series Banknotes (1969-1974)

IMAGE VAL DIMENSI MAIN FRONT BACK FIRST WITHDRAW

UE ON COLOR (DESCRIPTION) (DESCRIPTION) ISSUE AL
D

Declaration of
₱1 160 × 66 Blue José Rizal Philippine 1967 1974
mm Independence

Sanduguan or
₱5 160 × 66 Green Andres Bonifacio Blood Compact 1967 1974
mm of the
Katipuneros

₱10 160 × 66 Brown Apolinario Mabini Barasoain Church 1967 1974

mm

₱20 160 × 66 Orange Manuel L. Quezon Malacañang 1967 1974

mm Palace

₱50 160 × 66 Red Sergio Osmeña Legislative 1967 1974

mm Building

₱100 160 × 66 Violet Manuel Roxas Former Bangko 1967 1974

mm Sentral ng
Pilipinas
Building

New Generation Currency Series (2010-Present)

In 1995, a new set of coins and notes was issued. In 2009, the Bangko Sentral ng Pilipinas announced that it launched a
massive redesign for current banknotes and coins to further enhance security features and improve durability. The members of the
Numismatic Committee include Bangko Sentral Deputy Governor Diwa Guinigundo and Dr. Ambeth Ocampo Chairman of the
National Historical Institute. The new banknote design features famous Filipinos and iconic natural wonders. Philippine national
symbols will also be depicted on coins. To provide a smooth transition from the New Design Series to New Generation Currency
(NGC) series, BSP purposely retained some NDS features, such as, the size, predominant colors and the featured personalities in the
NGC, except for the portrait of President Corazon Aquino which is an added portrait on the 500-piso note. The BSP started releasing
the initial batch of new banknotes on December 16, 2010. The BSP launched in 2020 the enhanced NGC banknotes that are more
responsive to the needs of the elderly and the visually impaired, and feature the latest anti-counterfeiting technology. The NGC and
enhanced NGC banknotes are legal tender and may be used as payment for goods and services.

IMAGE VAL DIMENSI MAIN FRONT BACK

UE ON COLO (DESCRIPTION) (DESCRIPTION)
R

₱20 160 × 66 Orange Manuel L. Quezon, Banaue Rice Terraces; Paradoxurus

mm Declaration of Filipino hermaphroditus philippinensis, Palm
as the national Civet; Cordilleras weave design
language, Malacañang
Palace

₱50 160 × 66 Red Sergio Osmeña, First Taal Lake in Batangas; Catanx
mm Philippine Assembly, ignobilis, Maliputo (Giant trevally);
Leyte Landing Batangas embroidery design

Manuel A. Roxas, Old

₱100 160 × 66 Violet BSP building in Mayon Volcano in Albay;
mm Intramuros, Manila, Butanding, Rhincodon typus, whale
Inauguration of the shark; Bicol textile design
Third Philippine
Republic

Diosdado P.
₱200 160 × 66 Green Macapagal, EDSA Chocolate Hills in Bohol; Tarsius
mm People Power 2001, syrichta, Philippine Tarsier; Visayas
Aguinaldo Shrine in weave design
Kawit, Cavite,
Barasoain Church in
Malolos, Bulacan

Corazon C. Aquino, Subterranean Underground River in

₱500 160 × 66 Yellow Benigno S. Aquino, Puerto Princesa,
mm Jr., EDSA People Palawan; Tanygnathus lucionensis,
Power I, Benigno Blue-Naped Parrot; Southern
Aquino monument in Philippines cloth design
Makati City

₱1000 160 × 66 Blue José Abad Santos, Tubbataha Reefs Natural Park in Sulu
mm Vicente Lim, Josefa Sea; Pinctada maxima, South Sea
Llanes Escoda Pearl; Mindanao design for Tinalak
(Ikat-dyed abaca)