REYES, SHAIRA E.

| AR 504
PROF. MELQUIADES ACOMULAR | ECON 1N

EVOLUTION OF PHILIPPINE MONEY

Philippine money–multi-colored threads woven into the fabric of our social, political and economic life. From its
early bead-like form to the paper notes and coins that we know today, our money has been a constant reminder of
our journey through centuries as a people relating with one another and with other peoples of the world.

Pre- Hispanic Era Spanish Era

Long before the Spaniards came to the Philippines The cobs or macuquinas of colonial mints were the
in 1521, the Filipinos had established trade relations earliest coins brought in by the galleons from Mexico
with neighboring lands like China, Java, Borneo, and other Spanish colonies. These silver coins
Thailand and other settlements. Barter was a system usually bore a cross on one side and the Spanish
of trading commonly practiced throughout the world royal coat-of-arms on the other.
and adopted by the Philippines. The inconvenience
of the barter systemled to the adoption of a specific
medium of exchange – the cowry shells. Cowries
produced in gold, jade, quartz and wood became the
most common and acceptable form of money
through many centuries.

The Philippines is naturally rich in gold. It was used

in ancient times for barter rings and the first local
form of coinage called Piloncitos. These had a flat
base that bore an embossed inscription of the letters
“MA” or “M” similar to the Javanese script of the 11th
century. It is believed that this inscription was the
The Spanish dos mundos were circulated
name by which the Philippines was known to
extensively not only in the Philippines but the world
Chinese traders during the pre-Spanish time.
over from 1732-1772. Treasured for its beauty of
design, the coin features twin crowned globes
representing Spanish rule over the Old and the New
World, hence the name “two worlds.” It is also known
as the Mexican Pillar Dollar or the Columnarias due
to the two columns flanking the globes.

Barter rings made from pure gold, were

handfashioned by early Filipinos during the 11th and
the 14th centuries. These were used in trading with
the Chinese and other neighboring countries
together with the metal gongs and other ornaments
made of gold, silver and copper.
REYES, SHAIRA E. | AR 504
PROF. MELQUIADES ACOMULAR | ECON 1N
Due to the shortage of fractional coins,
thebarrillas, were struck in the Philippines by order of
the Spanish government. These were the first crude
copper or bronze coins locally produced in the
Philippines. The Filipino term “barya,” referring to
small change, had its origin in barrilla.
Three hundred years of Spanish rule left many
indelible imprints on Philippine numismatics. At the
end of the Spanish regime, Philippine money was a
multiplicity of currencies that included Mexican
pesos, Alfonsino pesos and copper coins of other
currencies.
Coins from other Spanish colonies also reached the
Philippines and were counterstamped.
Gold coins with the portrait of Queen Isabela were
minted in Manila. Silver pesos with the profile of
young Alfonso XIII were the last coins minted in
Spain.
In the early part of the 19th century, most of the
Spanish colonies in Central and South America
revolted and declared independence from
Spain. They issued silver coins bearing
revolutionary slogans and symbols which reached
the Philippines. They removed the inscriptions by
counter stamping the coins with the
word F7 or YII. Silver coins with the profile of young
Alfonso XIII were the last coins minted in Spain.
The first paper money circulated in the Philippines
was the peso fuerte (PF) issued by the country’s first
bank, the El Banco Espanol Filipino de Isabel II
(currently Bank of the Philippine Islands or BPI) on
May 1, 1852.
Cincuenta Pesos Fuertes (1852-1865)
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PROF. MELQUIADES ACOMULAR | ECON 1N

Revolutionary Period
General Emilio Aguinaldo, the first Philippine president, was
vested with the authority to produce currencies under the
Malolos Constitution of 1898. At the Malolos arsenal, two types
of two-centavo copper coins were struck. Revolutionary
banknotes were printed in denominations of 1,5 and 10
Pesos. These were hand signed by Pedro Paterno, Mariano
Limjap and Telesforo Chuidian. With the surrender of General
Aguinaldo to the Americans, the currencies were withdrawn
from circulation and declared illegal currency.

One peso and five peso notes printed as Republika Filipina

Papel Moneda de Un Peso and Cinco Pesos were freely
circulated. 2 centimos de peso copper were also issued in 1899.

Republika Filipina Papel Moneda de Un Peso

American Period
With the coming of the Americans 1898, modern banking,
currency and credit systems were instituted making the
Philippines one of the most prosperous countries in East
Asia. The monetary system for the Philippines was based on
gold and pegged the Philippine peso to the American dollar at
the ratio of 2:1. The US Congress approved the Coinage Act for
the Philippines in 1903.

The coins issued under the system bore the designs of Filipino
engraver and artist, Melecio Figueroa. Coins in denomination of
one-half centavo to one peso were minted. The renaming of El
Banco Espanol Filipino to Bank of the Philippine Islands in 1912
paved the way for the use of English from Spanish in all notes
and coins issued up to 1933. Beginning May 1918, treasury certificates replaced the silver certificates series, and
a one-peso note was added.

One Peso
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PROF. MELQUIADES ACOMULAR | ECON 1N

The Japanese Occupation

The outbreak of World War II caused serious disturbances in the Philippine monetary system. Two kinds of notes
circulated in the country during this period. The Japanese Occupation Forces issued war notes known as
the Japanese government-issued Philippine fiat peso, called by some Filipinos as the "Mickey Mouse" money.
Provinces and municipalities, on the other hand, issued their own guerrilla notes or resistance currencies, most of
which were sanctioned by the Philippine government in-exile, and partially redeemed after the war.

Japanese government-issued Philippine fiat peso

The Philippine Republic

A nation in command of its destiny is the message
reflected in the evolution of Philippine money under
the Philippine Republic. Having gained
independence from the United States following the
end of World War II, the country used as currency old
treasury certificates overprinted with the word
"Victory".
Pilipino series limampung piso
With the establishment of the Central Bank of the
Philippines in 1949, the first currencies issued were
the English series notes printed by the Thomas de la From 1973 to 1985, the Central Bank of the
Rue & Co., Ltd. in England and the coins minted at Philippines issued the Ang Bagong Lipunan series
the US Bureau of Mint. (The New Society Series) Philippine banknotes
which have the words "ANG BAGONG LIPUNAN"
and oval geometric safety design.

Philippine peso five centavo bill Ang Bagong Lipunan series limang piso

The Filipinization of the Republic coins and paper
money began in the late 60's and is carried through
to the present. In the 70's, the Ang Bagong
Lipunan (ABL) series notes were circulated, which
were printed at the Security Printing Plant starting
1978.
A new wave of change swept through the Philippine
coinage system with the flora and fauna coins initially
issued in 1983. These series featured national
heroes and species of flora and fauna. The New
Design series Philippine banknotes were issued on
June 12, 1985 replaced the ABL series. Security
features of these include a security thread, scattered
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PROF. MELQUIADES ACOMULAR | ECON 1N

red and blue visible fibers, and fluorescent printing.

New Design series limang piso

Under the New Central Bank Act, a new seal was

introduced when the Bangko Sentral ng
Pilipinas was established on July 3,
1993. The Filipino flag expresses nationalism and
unity, the risen sun denotes the nation’s bright future
and renewed spirit, the mountains stand for stability, image by Pinoy Numismatist Network
and the wheel represents movement and industry.
For the first time, a Philippine banknote bears a
feature for the blind and the visually impaired through
the 200-piso banknote. At the top left front side is a
print that can be easily felt by touch so that a visually
impaired or blind would be able to identify it.

Bangko Sentral ng Pilipinas seal

The Bangko Sentral ng Pilipinas series or BSP series

The new 200-piso note
were introduced on July 3, 1993. Security features
include glossy security thread, iridescent strip,
As the repository and custodian of country's
optically variable ink, anti-copying line structures,
numismatic heritage, the Museo ng Bangko Sentral
perfect registration, serial number, and windowed
ng Pilipinas collects, studies and preserves coins,
security thread and watermark, which only appear
paper notes, medals, artifacts and monetary items
when the banknotes are exposed under UV light.
found in the Philippines during the different historical
periods. It features a visual narration of the
development of the Philippine economy parallel to
the evolution of its currency.

REFERENCES:

http://www.bsp.gov.ph/bspnotes/hist_curr.asp

http://philmoney.blogspot.com/2008/01/evolution-of-
philippine-currency.html?m=1
Bangko Sentral ng Pilipinas series banknotes

http://kahimyang.info/kauswagan/general-
On December 16, 2010, the New Generation series
blogs/728/11-pieces-of-history-coins-used-by-
were issued, which pay tribute to Filipinos who
filipinos-before-and-during-the-spanish-era
played significant roles in our nation’s history. Also
highlighted are iconic natural wonders and world
http://www.yellow-pages.ph/article/banks-and-
heritage sites of the Philippines.
financial-institutions/pick-up-the-bill