History of Philippine Money: A Comprehensive Overview

The Philippines has a rich history of currency that dates back to the Spanish colonial era. The first coins minted in the Philippines were Spanish coins, specifically the real de a ocho, which was introduced in 1812.

These coins were used as a medium of exchange and were widely accepted throughout the islands. They featured the image of King Ferdinand VII of Spain and were made of gold, silver, and copper.

The Spanish government also introduced the Philippine peso in 1851, which was pegged to the Mexican peso. This marked the beginning of the Philippine peso as a national currency.

The peso was initially divided into 8 reales, with each real being equivalent to 0.125 pesos.

In the Philippines, the pre-Hispanic era saw the use of cowry shells as a medium of exchange due to the inconvenience of the barter system.

Before the arrival of Spaniards in 1521, early Filipinos and traders from China and other neighboring lands used cowry shells for trade.

The first form of coinage in the Philippines was piloncitos, small pieces of gold with a flat base engraved with an inscription of the letters "MA" or "M" that resembles the Javanese script of the 11th century.

The pre-Hispanic era in the Philippines was a time of trade and commerce among the early Filipinos and neighboring lands. They used the barter system, but it became inconvenient with increasing trade, leading to the adoption of cowry shells as a medium of exchange.

Cowry shells were eventually replaced by piloncitos, small pieces of gold used as the first form of coinage. Piloncitos were engraved with an inscription of the letters "MA" or "M" that resembles the Javanese script of the 11th century.

Piloncitos were used in various regions of the Philippines, including Tondo, Namayan, and Rajahnate of Butuan. They were tiny, bead-like gold bits that weighed from 0.09 to 2.65 grams of fine gold.

These tiny coins were found in various parts of the Philippines, including Mandaluyong, Bataan, and the banks of the Pasig River. They were also found in large numbers in Indonesian archeological sites, raising questions about their origin.

The people of the Philippines were skilled in handling gold, weighing it with great skill and delicacy, as evidenced by Spanish accounts from 1586. They even taught their children the knowledge of gold and its weights, as there was no other money among them.

The Spanish era in the Philippines was marked by the introduction of the silver peso, worth eight reales, by the Magellan expedition of 1521. This coin became a staple in the country's economy.

The Manila galleons brought in large quantities of these coins after the 1565 conquest of the Philippines. The local salapi continued under Spanish rule as a half-peso coin.

Spanish gold onzas or eight-escudo coins were also introduced, with identical weight to the Spanish dollar but valued at 16 silver pesos. These coins were widely accepted and used in trade.

The early silver coins brought in by the galleons from Mexico and other Spanish colonies were in the form of roughly-cut cobs or macuquinas. Locals called these crudely-made coins "hilis-kalamay" due to its resemblance to flattened rice cakes.

Starting 1726, machine-minted coins called Columnarios (pillar dollars) or dos mundos (two worlds) were introduced, containing 27.07 grams of 0.917 fine silver. These pillar dollars circulated extensively not only in the Philippines but all over the world.

The importation of Chinese cash in the Philippines is a fascinating chapter in Philippine numismatics.

One of the earliest issues of coinage to flood Philippine markets was the Wanli Tongbao, issued during the Wanli period of the Ming Dynasty.

These coins frequently bear post-mint chopmarks on the rims, attributed to Chinese merchants based in Manila around the late 16th or early 17th century.

The so-called Manila Chopmarks on the Wanli coins are the earliest known chopmarks, marking a significant milestone in the history of Chinese coinage in the Philippines.

Silver coins were minted in denominations of 8 real ($1) and 4, 2, 1 and 1⁄2 real, while gold coins came in denominations of 8 escudos ($16) and 4, 2, 1 and 1⁄2 escudos.

The Spanish government also ordered the production of crude copper or bronze coins called cuartos or barrillas in the Philippines. These coins were locally produced.

In 1837, an order was issued that 20 such cuartos be counted as one real, which meant that 160 cuartos were equivalent to one peso.

To make small change easier, whole $1 coins were often cut into eight wedges, each worth one Spanish real.

Counterfeit two-cuarto coins made by Igorot copper miners in the Cordilleras were accepted in circulation by the rest of the country, alleviating the discontinuation of officially minted copper cuartos in the 19th century.

The Philippine Gold / Silver Bimetallic Standard in the 19th century was a monetary system where the peso was valued equally against both gold and silver.

The Spanish gold onza was officially valued at 16 silver pesos, but its value diverged in international trade, leading to a 33% discount when paid to Chinese merchants.

The gold onza was minted as 1-, 2-, and 4-peso coins, with the 4-peso coin weighing 6.766 grams of 0.875 gold.

The peso was also valued against the Mexican peso, which was exchangeable with the gold onza for 16 pesos, and the silver Mexican peso weighed 27.07 grams of 0.903 fine.

The gold onza's overseas value climbed above 16 pesos, making importing Mexican dollars in exchange for gold coins a profitable venture.

By 1884, gold coin had entirely disappeared, leaving the Philippine peso on a bimetallic standard equal to either the silver Mexican peso or 1/16th the gold onza.

The gold peso increased in value to approx. two silver pesos, while the fineness of Philippine fractional silver coins was reduced from 0.900 to 0.835, worsening the quality of the local currency.

The Spanish Occupation of the Philippines had a significant impact on the country's currency. The Spanish introduced coins to the Philippines, starting with cobs or macuquinas from colonial mints in various Spanish countries.

These early coins, such as the Spanish dos mundos, were extensively circulated worldwide from 1732-1772 and reached the Philippines. The shortage of fractional coins led the Spanish government to create the barillas, crude bronze or bronze coins worth about one centavo in the Philippines.

The Filipino term "barya", meaning "small change", had its origin in barrilla, the Spanish word for barilla.

The Spanish Occupation of the Philippines lasted for nearly four centuries, from 1521 to 1897. This period saw the introduction of coins to the country.

The Spanish brought in cobs or macuquinas from their colonial mints, which were minted in various Spanish countries around the world. These coins were the earliest to be used in the Philippines.

The Spanish dos mundos, featuring twin crowned globes, were extensively circulated worldwide from 1732-1772 and also reached the Philippines. They reflect Spanish rule over the Old and the New World.

A shortage of fractional coins led the Spanish government to create the barillas, crude bronze or bronze coins worth about one centavo in the Philippines. The Filipino term "barya", meaning "small change", originated from barrilla.

Coins from other Spanish colonies that reached the Philippines were counter-stamped to legally circulate in the country.

The Philippines was briefly independent after a revolution against Spanish rule, but it didn't last long. By 1901, the United States had annexed the country as part of the treaty with Spain that ended the Spanish-American War.

The U.S. sent in military forces to defend its claim to the Philippines, resulting in the three-year-long Philippine-American War. This conflict marked a significant turning point in the country's history.

The U.S. established a Philippine currency that was pegged to the price of gold, and was worth about half the price of a U.S. dollar at the time. This exchange rate of ₱2/USD lasted until the country achieved independence in 1946.

The U.S. dollar was a powerful currency, and the peg of ₱2/USD was a significant factor in the country's economy.

The American and Japanese Occupation had a significant impact on the Philippine monetary system. The United States took possession of the Philippines in 1901 and introduced a new unit of currency.

The Philippine peso was pegged to the American dollar at a rate of 2 pesos per USD until the country became independent in 1946. The introduction of modern banking and credit systems made the Philippines one of the most prosperous countries in East Asia.

Coins in the denomination of one-half centavo to 1 peso were minted during this period, bearing the designs of Filipino engraver and artist, Melecio Figueroa.

The American Occupation of the Philippines from 1900 to 1941 was a significant period in the country's history. During this time, the United States took possession of the Philippines in 1901.

The introduction of modern banking and currency made the Philippines one of the most prosperous countries in East Asia. The country's monetary system was based on the gold standard.

The Philippine peso was pegged to the American dollar at a rate of 2 pesos per USD in 1903. This was a standard that remained until the country became independent in 1946.

Coins issued during this period bore the designs of Filipino engraver and artist, Melecio Figueroa. These coins were minted in denominations ranging from one-half centavo to 1 peso.

In 1912, El Banco Espanol Filipino was renamed to Bank of the Philippine Islands.

The Japanese Occupation of the Philippines lasted from 1942 to 1945. It caused severe disturbances to the Philippine monetary system.

World War II led to the issuance of two kinds of notes during this period. These war notes were in big denominations and had no backup reserves.

The Filipinos nicknamed these notes "Mickey Mouse" due to the severe inflation they experienced. This was the worst inflation in the history of the Philippines.

Provinces and municipalities issued their own guerrilla notes or resistance currencies. These were in low denominations and were sanctioned by the Philippine government-in-exile.

Most of these guerrilla notes showed resistance against the Japanese occupation.

In 1935, the Philippines became a U.S. Commonwealth, marking a significant shift in its governance.

The coat of arms of the Philippine Commonwealth was adopted, replacing the arms of the US Territories on the reverse of coins.

The obverse of the coins remained unchanged, retaining the original design.

This new seal featured a smaller eagle with its wings pointed up, perched over a shield with peaked corners.

Above the shield was a scroll reading "Commonwealth of the Philippines", creating a more intricate design.

The coat of arms of the Philippine Commonwealth is widely considered less attractive than its predecessor.

The Republic of the Philippines has had its fair share of currency changes over the years. The Central Bank of the Philippines was created in 1949, and it maintained a 2:1 peg with the USD in the 1950s.

The country struggled to stabilize the exchange rate, and the currency continued to devalue. By 1986, it was near ₱20/USD, a far cry from the initial peg.

In 1993, the New Central Bank Act set the Philippine peso on a path to being a free-floating currency, which brought stability to the currency and made the black market for pesos cease to exist.

Since the exchange rate is free-floating, it changes by the day and even by the minute. As of now, the exchange rate is 52.27 USD/PHP, meaning that for every one USD, you can expect to get somewhere close to 52.27 PHP.

The Philippine peso has undergone several design changes over the years. Currently, banknotes of denominations 20, 50, 100, 200, 500, and 1,000 pesos are in circulation.

These notes are vibrant and feature images of famous Filipinos, events in Philippine history, and the country's natural riches. The bills' size does not vary but is distinctly different in colors.

You can still exchange old Philippine peso notes for new ones, but only up to a certain point. The New Design Series (NDS) banknotes were legal tender until December 31, 2015, and could be exchanged with newer notes until January 3, 2018.

If you're planning a trip to the Philippines, you'll need to buy some Philippine pesos (PHP) for your trip. You can exchange your money at a bank or currency exchange office.

During World War II, the Philippine Commonwealth Government in exile printed currency known as "guerrilla pesos." These emergency circulating notes were printed using crude inks and materials, making them easily mutilated.

The Japanese-sponsored Second Philippine Republic under President José P. Laurel outlawed possession of guerrilla currency, declaring a monopoly on the issuance of money. Anyone found to possess guerrilla notes could be arrested or even executed.

The inferior quality of guerrilla pesos made them unreliable as a medium of exchange, highlighting the challenges of printing currency under wartime conditions.

Stamped Currency was a common practice in the Philippines to remove seditious markings from coins imported from Spanish colonies in Central and South America.

The Spanish government officials in the Philippines were fearful that the revolutionary slogans and symbols on the coins would incite Filipinos to rebellion, so they counter stamped the coins with the word F7 or YII.

This was just one of the many difficulties with the currency system in the Philippines at the time. Money came in different coinages, and fractional currency existed alongside the real and the cuarto.

Copper cuartos, for example, were worth 160 to a peso, making it a challenge to keep track of accounts. An 1857 decree requiring the keeping of accounts in pesos and centimos was of little help in this situation.

Guerilla Pesos (Emergency Notes) were currency printed by the Philippine Commonwealth Government in exile during World War II.

These emergency notes were printed by local government units and banks using crude inks and materials, resulting in inferior quality bills that were easily mutilated.

The Japanese-sponsored Second Philippine Republic under President José P. Laurel outlawed possession of guerrilla currency and declared a monopoly on the issuance of money.

Anyone found to possess guerrilla notes could be arrested or even executed, highlighting the risks associated with using these emergency notes.

Mickey Mouse Money was the nickname given to the Japanese government-issued Philippine fiat peso during World War II.

This fiat currency was introduced by the occupying Japanese government in several denominations, and its value plummeted quickly.

In the Philippines, possession of guerrilla currency was outlawed, and the Second Philippine Republic under José P. Laurel declared a monopoly on money issuance, leading to the widespread use of the Japanese-issued bills.

The value of Mickey Mouse Money was extremely low, with 75 of these pesos being equivalent to about 35 U.S. dollars at the time.

A box of matches cost more than 100 Mickey Mouse pesos in 1944, giving you an idea of just how worthless this currency was.

Many survivors of the war remember carrying suitcases or traditional native bags overflowing with the Japanese-issued bills to the market.

The Philippine peso has a rich history, and understanding its basics is essential for anyone visiting or living in the country. The peso was first introduced as paper money in 1851 by the Banco Español-Filipino, with a relatively small volume of 1,800,000 pesos.

The peso was initially bimetallic, meaning it could be exchanged for either silver pesos or gold onzas. This unique feature made the peso a valuable currency in the 19th century. By the end of the century, there were over 40,000,000 silver pesos in circulation.

For travelers, it's essential to know that the Philippine peso is still widely used today, and it's a good idea to have some local currency on hand when arriving in the country.

The Philippine Peso is the official currency of the Philippines, represented by the symbol PHP. It's a widely accepted and used currency, especially when traveling to the country.

You can buy Philippine pesos at a currency exchange office, usually found at airports, banks, or currency exchange stores. This is what a couple from the U.S. did before heading to the Philippines for their holiday.

The exchange rate between the Philippine Peso and the U.S. Dollar can fluctuate, so it's essential to check the current rate before making any transactions. This will help you get the best value for your money.

Assuming you're buying PHP, you can use it to purchase various goods and services in the Philippines, such as food, souvenirs, and accommodations.

As of November 17, 2024, one U.S. dollar was equal to 58.72 Philippine pesos.

The exchange rate can fluctuate, and over the previous five years, it ranged from $47.70 to $59.20.

You'll likely pay a fee of 3% to 5% when exchanging U.S. dollars for Philippine pesos at a bank or foreign currency exchange.