APPLIED ECONOMICS

The Philippine Peso and

the Foreign Currency

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APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Objectives
At the end of the lesson, the learner is expected
to:
 enumerate the different types of Filipino peso
bill;
 analyze the impact of money and foreign
currency in foreign exchange in our economy

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APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Start up:
Watch a video entitled “Usapang Pera: Noon at
Ngayon”.
https://www.youtube.com/watch?v=28j91QiNq
1o

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

The Filipino Peso

• The Philippine peso (Filipino: piso; sign: ₱; code: PHP) is
the official currency of the Philippines. It is subdivided into
100 centavos (Filipino: sentimo).

• The peso is usually denoted by the symbol "₱".

• The Philippine coins and banknotes are minted and printed

at the Security Plant Complex of the Bangko Sentral ng
Pilipinas (Central Bank of the Philippines) in Quezon City

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

The Five and Ten Peso Bill

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

The 20 Peso Bill

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

The 50 Peso Bill

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

The 100 Peso Bill

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

The 200 Peso Bill

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

The 500 Peso Bill

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

The 1000 Peso Bill

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

What is Currency?
• In economics, currency is a generally
accepted medium of exchange.
• An exchange rate is the rate at which one currency
may be converted into another, also called rate of
exchange of foreign exchange rate or currency
exchange rate.

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

What is Currency?
• The foreign exchange rate is simply the price of
one currency in terms of another, or how much one
currency can be exchanged for another, in the same
way that the price of a good is determined by how
much money can be exchanged for it.

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Money Changing
• The main function of a foreign exchange
department is to make money for the bank by
speculating on whether a particular currency will
rise or fall against another. Banks compete fiercely
with each other using experienced market traders
and millions of dollars or currency equivalents are
exchanged daily.

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Foreign exchange market

• The foreign exchange market (forex, FX,
or currency market) is a form of exchange for the
global decentralized trading of international
currencies.

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Foreign exchange market

• Foreign exchange transaction is a type of currency
transaction that involves two countries. Generally, a
foreign exchange transaction involves conversion of
currency of one country with that of another. The
conversion of currency in a foreign exchange
transaction can be performed through :
1. buying or selling of goods and services on
credit;
2. borrowing or lending funds.

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

What Are the Functions of Foreign

Currency Exchange Markets?

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Primary Function
The primary function of foreign
currency exchange markets is to
convert the currency of one
country into another currency.
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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

International Transactions
Foreign currency exchange
markets serve to facilitate
international financial
transactions.
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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Currency Value
The value of a country's currency
can influence international trade,
consumers' purchasing power
and inflation.

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Investment
Fund managers and investment
professionals use the foreign
currency exchange market to help
diversify their portfolios and
potentially increase their returns.
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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Loss Protection
International companies that work
in multiple countries are subject to
gains and losses based on
exchange rate fluctuations.
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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Forex Trading
Forex, the word, means FOReign EXchange market. This is an
international market where the buying and selling of money is done
freely and 24 hours a day. All forex trading involve the buying of one
currency and the selling of another, simultaneously. Currency quotes
are given as exchange rates; that is, the value of one currency
relative to another. The relative supply and demand of both
currencies will determine the value of the exchange rate.

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

The trading of foreign currency is the exchange

of money issued in one country for money
issued in another. Foreign currency trading
takes place in the highly-solvent foreign
exchange market. Currencies are traded for one
another at exchange rates, which are relative
prices determined by market supply and
demand.

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Here are some simple tips that will help you increase
your profit potential and prevent you from losing
money.

1. Select your first broker

2. Get a simple method you
understand
3. Trade the big trends and not trade
frequently ABM_AE12
 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

4. Work smart and not hard

5. The formula to success

Using Simple Method + With Discipline +

Control Risks = Forex Trading Success
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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Tips & Warnings

*Document your training objectives. This can facilitate the
process for everyone.
*Create and prioritize an outline of the demos and videos to
use as a checklist for each handler.
*Let handlers know it takes time to master the forex system to
keep them from being discouraged.
*Foreign exchange trading is a high-risk activity and should
not be taken lightly.
*Monitor each handler individually, be available for one-on-
one interaction and encourage questions for the best training
results.
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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

What is foreign
exchange risk?
Exchange risk is simple in concept:
a potential gain or loss that occurs
as a result of an exchange rate
change.
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About BPI Forex Corporation

BPI Forex Corporation is a wholly-owned subsidiary of

the Bank of the Philippine Islands (BPI) established in
response to increasing foreign exchange demand
following a liberalized foreign exchange environment
in the country. It delivers hassle - free service and offers
very attractive exchange rates for your currencies.
 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

List of Currencies
Aside from the US Dollar, BPI Forex Corporation transacts in
the following
currencies:.
Australian Dollar Chinese Yuan
Korean Won Euro
Bahrain Dinar Hong Kong Dollar
British Pound Indonesian Rupiah
Brunei Dollar Japanese Yen
Canadian Dollar Malaysian Ringgit
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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

New Zealand Dollars

Saudi Riyal
Singapore Dollar
Swedish Kroner
Swiss Franc
Taiwan Dollars
Thailand Baht

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The Philippine Peso and The Foreign Currency

BPI FOREIGN EXCHANGE

Currencies Buying Selling
(in Philippine Peso) (in Philippine Peso)
US Dollar 41.7500 42.5200
Euro 48.4700 52.5700
British Pound 61.7800 66.3000
Australian Dollar 39.6400 44.1600
Japanese Yen 0.5084 0.5509
Canadian Dollar 38.4400 42.7600
Swiss Franc 39.8500 44.1700
Hongkong Dollar 5.3300 6.0000
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The Philippine Peso and The Foreign Currency

Singapore Dollar 32.6200 33.9500

Brunei Dollar 32.5400 34.0300
Thailand Baht 1.2900 1.5000
Indonesian Rupiah 0.0042 0.0053
Saudi Riyal 10.9000 11.6000
Malaysian Ringgit 12.9000 13.6700
New Zealand 32.6400 34.1300
Dollar
Bahrain Dinar 109.0400 113.5100
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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

ACTIVITY:
Look for copies of the old and new version of
Philippine Peso Bill and make a booklet. In each
page you have to paste the bill and write
information in each one.

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 APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Quiz:
1. It is the official currency of Philippines.
2. It is the only institution in the government which has the
function of printing money in the country.
3. The Philippine peso is divided in _____.
4. It is a form of exchange for the global decentralized trading
of international currencies.
5. It is the rate at which one currency may be converted into
another.

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APPLIED ECONOMICS
The Philippine Peso and The Foreign Currency

Reference:
• Tullao Jr., Tereso S. Applied Economics For A
Progressive Philippines. Phoenix Publishing House;
927 Quezon Ave., Quezon City. 2016
• Pagoso, Cristobal M. Philippine Economics (Macro
Approach). NELSON PUBLICATION; Marimar
Village Paranaque City. 2003
• Carnaje, Gideon P. Applied Economics. Vibal Group
Inc, Araneta Avenue, Quezon City. 2016

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