Philippine peso
Overview
 
The peso (sign
Currency sign
A currency sign is a graphic symbol used as a shorthand for a currency's name, especially in reference to amounts of money. They typically employ the first letter or character of the currency, sometimes with minor changes such as ligatures or overlaid vertical or horizontal bars...

: ₱; code
ISO 4217
ISO 4217 is a standard published by the International Standards Organization, which delineates currency designators, country codes , and references to minor units in three tables:* Table A.1 – Current currency & funds code list...

: PHP) is the currency of the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

. It is subdivided into 100 centavos (Filipino: sentimo, Visayan
Visayan languages
The Visayan languages of the Philippines, along with Tagalog and Bikol, are part of the Central Philippine languages...

: sentabo). Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used. The language was then changed to Filipino
Filipino people
The Filipino people or Filipinos are an Austronesian ethnic group native to the islands of the Philippines. There are about 92 million Filipinos in the Philippines, and about 11 million living outside the Philippines ....

, so that the name of the currency as written on the banknotes and coins is now Piso.

The peso is usually denoted by the symbol "₱".
Encyclopedia
The peso (sign
Currency sign
A currency sign is a graphic symbol used as a shorthand for a currency's name, especially in reference to amounts of money. They typically employ the first letter or character of the currency, sometimes with minor changes such as ligatures or overlaid vertical or horizontal bars...

: ₱; code
ISO 4217
ISO 4217 is a standard published by the International Standards Organization, which delineates currency designators, country codes , and references to minor units in three tables:* Table A.1 – Current currency & funds code list...

: PHP) is the currency of the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

. It is subdivided into 100 centavos (Filipino: sentimo, Visayan
Visayan languages
The Visayan languages of the Philippines, along with Tagalog and Bikol, are part of the Central Philippine languages...

: sentabo). Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used. The language was then changed to Filipino
Filipino people
The Filipino people or Filipinos are an Austronesian ethnic group native to the islands of the Philippines. There are about 92 million Filipinos in the Philippines, and about 11 million living outside the Philippines ....

, so that the name of the currency as written on the banknotes and coins is now Piso.

The peso is usually denoted by the symbol "₱". This symbol was added to the Unicode
Unicode
Unicode is a computing industry standard for the consistent encoding, representation and handling of text expressed in most of the world's writing systems...

 standard in version 3.2 and is assigned U+20B1 (). The symbol can be accessed through some word processors by typing in "20b1" and then pressing the Alt and X buttons simultaneously. Other ways of writing the Philippine Peso sign are "PHP", "PhP", "P", or "P" (strike-through or double-strike-through uppercase P), which is still the most common method, however font support for the Unicode Peso sign has been around for sometime.

The coins and banknotes are made at the Security Plant Complex of the Bangko Sentral ng Pilipinas
Bangko Sentral ng Pilipinas
The Bangko Sentral ng Pilipinas and commonly abbreviated as BSP is the central bank of the Philippines. It was rechartered on July 3, 1993, pursuant to the provision of the 1987 Philippine Constitution and the New Central Bank Act of 1993...

.

Pre-Spanish Colonial Period

Trade among the early Filipinos and with traders from the neighboring islands was conducted through barter
Barter
Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is usually bilateral, but may be multilateral, and usually exists parallel to monetary systems in most developed countries, though to a...

. The inconvenience of barter later led to the use of some objects as medium of exchange. These objects included piloncitos
Piloncitos
Piloncitos are tiny engraved gold coins found in the Philippines from the pre-Hispanic era.Trade among the early Filipinos and with traders from the neighboring islands was conducted through barter. The inconvenience of barter later led to the use of some objects as a medium of exchange...

 and gold barter rings. Piloncitos are small bead-like gold bits, and they are considered by the local numismatists as the earliest coin of the ancient Filipinos.

Spanish Colonial Period

The Spaniards brought their coined money when they came in 1521 and the first European coin which reaches the Philippine Islands with Magellan
Ferdinand Magellan
Ferdinand Magellan was a Portuguese explorer. He was born in Sabrosa, in northern Portugal, and served King Charles I of Spain in search of a westward route to the "Spice Islands" ....

's arrival was the teston
Teston
Teston is a village in the Maidstone District of Kent, England. It is located on the A26 road out of Maidstone, four miles from the town centre. There is a narrow stone bridge over the River Medway here....

 or four-reales silver coin. The teston became the de facto
De facto
De facto is a Latin expression that means "concerning fact." In law, it often means "in practice but not necessarily ordained by law" or "in practice or actuality, but not officially established." It is commonly used in contrast to de jure when referring to matters of law, governance, or...

 unit of trade between Spaniards and Filipinos before the founding of Manila
Manila
Manila is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila.Manila is located on the eastern shores of Manila Bay and is bordered by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast,...

 in 1574. The native name for the coin was salapi (Tagalog
Tagalog language
Tagalog is an Austronesian language spoken as a first language by a third of the population of the Philippines and as a second language by most of the rest. It is the first language of the Philippine region IV and of Metro Manila...

 for money).

Pre-Decimal Coinage

With the establishment of Manila, the Spanish introduced the silver Real de a ocho
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...

, already known across the Spanish Empire
Spanish Empire
The Spanish Empire comprised territories and colonies administered directly by Spain in Europe, in America, Africa, Asia and Oceania. It originated during the Age of Exploration and was therefore one of the first global empires. At the time of Habsburgs, Spain reached the peak of its world power....

 coloquially as the peso
Peso
The word peso was the name of a coin that originated in Spain and became of immense importance internationally...

, which was divided into 8 Reales and further subdivided into 4 Quartos or 8 Octavos.

The monetary situation in the Philippine Islands was chaotic due to the circulation of many types of coins, with differing purity and weights, coming from mints across the Spanish-speaking world. Spanish coins circulated freely with those from the newly independent Spanish colonies including reales fuertes, reales de vellón
Spanish real
The real was a unit of currency in Spain for several centuries after the mid-14th century, but changed in value relative to other units introduced...

, peseta columnaria
Columnarios
Columnarios are silver coins that were minted by Spain from 1732 to 1773 throughout their new colonies in present-day Latin America. While the majority of columnarios were struck in Mexico, smaller mints existed in Guatemala; Lima, Peru; Santiago, Chile; Potosí, Bolivia; and Columbia. The base...

, peseta sencilla, pesos de minas, tomines, ducados, maravedis among others. Value equivalents of the different monetary systems were usually difficult to comprehend and hindered trade and commerce.

Decimal Coinage

An attempt to remedy the monetary confusion was made in 1848, with the introduction of the decimal system in 1857 under the second Isabelline monetary system. Overseeing the conversion was Governor-General Fernándo Norzagaray y Escudero
Governor-General of the Philippines
The Governor-General of the Philippines was the title of the government executive during the colonial period of the Philippines, governed mainly by Spain and the United States, and briefly by Great Britain, from 1565 to 1935....

.

Conversion to the decimal system with the peso fuerte (Spanish for strong peso) as the unit of account solved the accounting problem, but did little to remedy the confusion of differing circulating coinage. Renewed calls for the Philippine Islands to have a proper mint and monetary system finally came to fruition in September 1857, when Queen Isabel II authorized the creation of the Casa de Moneda de Manila and purchase of required machinery. The mint was inaugurated on March 19, 1861.

Despite the mintage of gold and silver coins, Mexican and South and Central American silver still circulated widely.

The Isabella Peso or Peso Fuerte

The Isabelline Peso, more formally known as the peso fuerte was a unit of account divided into 100 centimos equivalent to 8 reales fuertes
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...

 or 80 reales de vellón
Spanish real
The real was a unit of currency in Spain for several centuries after the mid-14th century, but changed in value relative to other units introduced...

. Its introduction led to the Philippines' brief experiment with the gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...

, which would not again be attempted until the American Colonial Period. The Peso Fuerte was also a unit of exchange equivalent to 1.69 grams of gold, 0.875 fine (0.0476 XAU), equivalent to ₱2,934.31 modern pesos of as of 22 December 2010.

Coin production at the Casa de Moneda de Manila began in 1861 with gold coins (0.875 fine) of three denominations: 4 pesos, 2 pesos, and 1 peso. On March 5, 1862, Isabel II granted the mint permission to produce silver fractional coinage (0.900 fine) in denominations of 10, 20, and 50 centimos de peso. Minting of these coins started in 1864, with designs similar to the Spanish Silver Escudo
Spanish escudo
-Gold escudo:The first escudo was a gold coin introduced in 1535/1537, with coins denominated in escudos issued until 1833. It was initially worth 16 reales...

.

The Alfonso Peso, the Spanish-Filipino Peso

A final attempt to standardize the currency in the Philippines was made by the Spanish government with the minting of a silver peso expressly for use in the colony and firmly reestablishing the silver standard
Silver standard
The silver standard is a monetary system in which the standard economic unit of account is a fixed weight of silver. The silver specie standard was widespread from the fall of the Byzantine Empire until the 19th century...

 as the Philippine monetary system. The coin, which was to be later known as the Spanish-Filipino peso, was minted in Madrid in 1897 and bore the bust of King Alfonso XIII. The specifications of the coin was 25 grams of silver .900 fine. This configuration was also used in the creation of the Puerto Rican provincial peso in 1895 giving both coins the equivalency of 5 pesetas.

The new monetary standard finally established the Peso as 25 grams silver, 0.900 fine (0.7234 XAG), equivalent to ₱942.535 modern pesos of as of 22 December 2010.

The Spanish-Filipino peso remained in circulation and were legal tender in the islands until 1904, when the American authorities demonetized them in favor of the new US-Philippine peso.

Revolutionary Period

Asserting its independence after the Philippine Declaration of Independence
Philippine Declaration of Independence
The Philippine Declaration of Independence occurred on June 12, 1898 in Cavite II el Viejo , Cavite, Philippines. With the public reading of the Act of the Declaration of Independence, Filipino revolutionary forces under General Emilio Aguinaldo proclaimed the sovereignty and independence of the...

 on June 12, 1898, the República Filipina (Philippine Republic) under General Emilio Aguinaldo
Emilio Aguinaldo
Emilio Aguinaldo y Famy was a Filipino general, politician, and independence leader. He played an instrumental role during the Philippines' revolution against Spain, and the subsequent Philippine-American War or War of Philippine Independence that resisted American occupation...

 issued its own coins and paper currency backed by the country’s natural resources. The coins were the first to use the name centavo for the subdivision of the peso. The island of Panay
Panay
Panay may refer to*Panay Island*Panay *Panay, Capiz*Panay River*Panay Gulf* USS Panay *Panay incident...

 also issued revolutionary coinage. After Aguinaldo's capture by American forces in Palanan, Isabela
Palanan, Isabela
Palanan is a remote 2nd class municipality in the province of Isabela, Philippines. According to the latest census, it has a population of 16,254 people in 2,837 households....

 on March 23, 1901, the revolutionary peso ceased to exist.

American Colonial Period

After the United States took control of the Philippines, the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

 passed the Philippine Coinage Act (March 3, 1903), established the unit of currency to be a theoretical gold peso (not coined) consisting of 12.9 grains of gold 0.900 fine (0.026875 XAU), equivalent to ₱2,933.07 modern pesos of as of 22 December 2010. This unit was equivalent to exactly half the value of a U.S. dollar and maintained its purchasing power until the opening day of the Central Bank of the Philippines in 1949.

The act provided for the coinage and issuance of Philippine silver pesos substantially of the weight and fineness as the Mexican peso, which should be of the value of 50 cents gold and redeemable in gold at the insular treasury, and which was intended to be the sole circulating medium among the people. The act also provided for the coinage of subsidiary and minor coins and for the issuance of silver certificates in denominations of not less than 2 nor more than 10 pesos.

It also provided for the creation of a gold-standard fund to maintain the parity of the coins so authorized to be issued and authorized the insular government to issue temporary certificates of indebtedness bearing interest at a rate not to exceed 4 per cent per annum, payable not more than one year from date of issue, to an amount which should not at any one time exceed 10 millions of dollars or 20 millions of pesos.
Volume III of the 1925 Administrative Code with Comments and Annotations by Gregorio S. Araneta
Gregorio S. Araneta
Gregorio S. Araneta , also known as Don Gregorio Araneta y Soriano, was a Filipino lawyer, businessman, nationalist and patriot, who served his country and people during the Spanish colonization and American occupation....

, (Book II, Title VII, Chapter 41, Article II)

1611. Unit of monetary value in the Philippine Islands

The unit of value in the Philippine Islands shall be the gold peso consisting of twelve and nine-tenths grains of gold, nine-tenths fine; two pesos gold shall be equal in weight, fineness, and value to the gold standard dollar of the United States.

[Act of Cong., Mar. 2, 1903, sec 1; 2657-1770; 2776-1; 3058-1]

1612. Legal tender

The Philippine silver peso and half peso, and gold coins of the United States at the value of one dollar for two pesos, shall be legal tender for all debts, public and private, unless otherwise specifically provided by contract. Philippine subsidiary coins of twenty centavos and ten centavos shall be legal tender in amounts not exceeding twenty pesos. Philippine minor coins of nickel and copper shall be legal tender in amounts not exceeding two pesos.

[Act of Cong., Jul 1, 1902, sec 79; Act of Cong., Mar. 2, 1903, secs 3, 5; 2657-1771; 2776-1; 3058-1]


Shortly after the introduction of the Peso-dollar Parity Fund, a problem occurred which was paralled in the Straits Settlements
Straits Settlements
The Straits Settlements were a group of British territories located in Southeast Asia.Originally established in 1826 as part of the territories controlled by the British East India Company, the Straits Settlements came under direct British control as a crown colony on 1 April 1867...

. The price of silver rose so high that the Philippine Peso coins, and the new Straits dollar
Straits dollar
The Straits dollar was the currency of the Straits Settlements from 1904 until 1939. At the same time, it was also used in the Federated Malay States, the Unfederated Malay States, Sarawak, Brunei, and British North Borneo.-History:...

 coins became less valuable than their actual silver content.

In order to maintain the Peso-dollar Parity Fund, instead of allowing the exchange rate to float, the weight and fineness of the coins were later reduced by Act No. 1564 of the Philippine Commission
Philippine Commission
The Philippine Commission was a body appointed by the President of the United States to exercise legislative and limited executive powers in the Philippines. It was first appointed by President William McKinley in 1901. Beginning in 1907, it acted as the upper house of a bicameral Philippine...

, enacted December 6, 1906. The following legal provision proclaims:
1613. Weight and fineness of Philippine coins

The lawful weight and finess of Philippine coins shall be as follows, and all coins hereafter coined shall be minted in accordance therewith:

The peso shall be equal to one hundred centavos and shall contain twenty grams of silver eight hundred thousandths fine.
The fifty-centavo piece shall contain ten grams of silver seven hundred and fifty thousandths fine.
The twenty-centavo piece shall contain fourgrams of silver seven hundred and fifty thousandths fine.
The ten-centavo piece shall contain two grams of silver seven hundred and fifty thousandths fine.
The alloy of the above-mentioned silver coins shall be copper.

The five centavo piece shall cointain four grams and eighty-seven centigrams of an alloy composed of seventy-five per cent of copper and twenty-five per cent of nickel.
The one centavo piece shall cointain five grams and one hundred and eighty-four milligrams of an alloy composed of ninety-five per cent of copper and five per cent of tin and zinc.


.

World War II

In 1942, the Japanese occupiers introduced notes
Japanese government-issued Philippine fiat peso
During World War II in the Philippines, the occupying Japanese government issued fiat currency in several denominations; this is known as the Japanese government-issued Philippine fiat peso. The Japanese-sponsored Second Philippine Republic under Jose P...

 for use in the Philippines. Emergency circulating notes
Emergency circulating notes
Emergency circulating notes were currency printed by the Philippine Commonwealth Government in exile during World War II. These "guerrilla pesos" were printed by local government units and banks using crude inks and materials. Due to the inferior quality of these bills, they were easily...

 (also termed "guerrilla pesos") were also issued by banks and local governments, using crude inks and materials, which were redeemable in silver pesos after the end of the war. The Japanese-sponsored Second Philippine Republic
Second Philippine Republic
The Second Philippine Republic, officially known as the Republic of the Philippines , was a state in the Philippines established on October 14, 1943 under Japanese occupation....

 under José P. Laurel
Jose P. Laurel
José Paciano Laurel y García was the president of the Republic of the Philippines, a Japanese-sponsored administration during World War II, from 1943 to 1945...

 outlawed possession of guerrilla currency and declared a monopoly on the issuance of money and anyone found to possess guerrilla notes could be arrested. Because of the fiat nature of the currency, the Philippine economy felt the effects of hyperinflation
Hyperinflation
In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...

.

Combined U.S. and Philippine Commonwealth military forces including recognized guerrilla units continued printing Philippine pesos, so that, from October 1944 to September 1945, all earlier issues except for the emergency guerrilla notes were considered illegal and were no longer legal tender.

Independence

Republic Act
Republic Acts of the Philippines
This article contains a partial list of Philippine laws. Philippine laws have had various nomenclature designations at different periods in the history of the Philippines, as shown in the following table:...

 No. 265 created the Central Bank of the Philippines
Bangko Sentral ng Pilipinas
The Bangko Sentral ng Pilipinas and commonly abbreviated as BSP is the central bank of the Philippines. It was rechartered on July 3, 1993, pursuant to the provision of the 1987 Philippine Constitution and the New Central Bank Act of 1993...

 (CBP, now the Bangko Sentral ng Pilipinas) on January 3, 1949, in which was vested the power of administering the banking & credit system of the country. Under the act, all powers in the printing and mintage of Philippine currency was vested in the CBP, taking away the rights of the banks such as Bank of the Philippine Islands and the Philippine National Bank to issue currency.

In a repeat of Japanese wartime monetary policy, the government defaulted on its promises to redeem its banknotes in silver or gold coin while promising to maintain the two-to-one peso to dollar parity. This decision, compounded with the deliberate overprinting of fiat banknotes, resulted in the peso dropping in value by almost 300% against the US dollar within the first three hours of opening day. The government effort to maintain the peg devastated the gold, silver and dollar reserves of the country.

By 1964, the bullion value of the old silver pesos was worth almost twelve times their face value and were being hoarded by Filipinos rather than being surrendered to the government at face value. In desperation, then-President Diosdado Macapagal
Diosdado Macapagal
Diosdado Pangan Macapagal was the ninth President of the Philippines, serving from 1961 to 1965, and the sixth Vice President, serving from 1957 to 1961. He also served as a member of the House of Representatives, and headed the Constitutional Convention of 1970...

 demonetized the old silver coins and floated the currency. The peso has been a floating currency ever since, which means that the currency is a physical representation of the domestic debt and whose value directly tied to people's perception of the stability of the current regime and its ability to repay the debt.

From the opening of the Bangko Sentral ng Pilipinas in 1949, successive governments have continued to devalue the currency in order to lower the accumulated domestic debt in real terms, which in December 2005 reached ₱4.02 trillion. Many Filipinos perceive the peso's value in relation to the US dollar — rather than consider the currency's purchasing power
Purchasing power
Purchasing power is the number of goods/services that can be purchased with a unit of currency. For example, if you had taken one dollar to a store in the 1950s, you would have been able to buy a greater number of items than you would today, indicating that you would have had a greater purchasing...

 — and thus tend to blame whatever regime is in power for the worsening exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...

.

In 1967, the language used on all coins and banknotes was changed to Tagalog
Tagalog language
Tagalog is an Austronesian language spoken as a first language by a third of the population of the Philippines and as a second language by most of the rest. It is the first language of the Philippine region IV and of Metro Manila...

. As a consequence, the wordings of the currency changed from centavo and peso to sentimo and piso.

Current economy

Based on the current price of gold, the Philippine peso has now lost 99.9328% of its original 1903-1949 value. As of December 22, 2010, it takes ₱2,933.07 modern pesos to equal the intrinsic purchasing power parity
Purchasing power parity
In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...

 of the 1903-1949 Philippine Commonwealth peso, as per its legal definition: 12.9 grains of pure gold (or 0.026875 XAU
Philadelphia Gold and Silver Index
The Philadelphia Gold and Silver Index is an index of eleven precious metal mining companies that is traded on the Philadelphia Stock Exchange. The index is represented by the symbol "XAU", which may be a source of some confusion as this symbol is also used under the ISO 4217 currency standard to...

).

, the Philippine money supply
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...

 (M1) totaled about ₱1.22 trillion. , the Philippine Peso
PHP
PHP is a general-purpose server-side scripting language originally designed for web development to produce dynamic web pages. For this purpose, PHP code is embedded into the HTML source document and interpreted by a web server with a PHP processor module, which generates the web page document...

 traded at 43.63 per US$, 60.17013 per EUR
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

, 6.52119 per CNY
Renminbi
The Renminbi is the official currency of the People's Republic of China . Renminbi is legal tender in mainland China, but not in Hong Kong or Macau. It is issued by the People's Bank of China, the monetary authority of the PRC...

.

Coins

In 1861, gold coins were issued for 1, 2 and 5 pesos. These were equal in gold content to the earlier Spanish coins of ½, 1 and 2 escudos. Silver coins were minted from 1864 in denominations of 10, 20 and 50 centimos de peso, with silver 1-peso coins issued in 1897. During the Revolutionary period, coins were issued in copper for 1 and 2 centavos and 2 centimos de peso.

In 1903, a new coinage was introduced. It consisted of bronze ½ and 1 centavo, cupro-nickel 5 centavos and silver 10, 20 and 50 centavos and 1 peso. The silver coins were weight related to the peso which was minted in .900 fineness and contained 374.4 grains of silver. U.S. gold coins and ½ and 1 peso coins were legal tender for any amount, with 10 and 20 centavos coins being legal tender up to 20 pesos and smaller coins up to 2 pesos. The sizes and finenesses of the silver coins were reduced in 1907, with the peso now a 20 gram coin minted in .750 silver. Production of the 1 peso coin ceased in 1912 and that of the 50 centavos in 1921.

The American Government deemed it more economical and convenient to mint silver coins in the Philippines, hence, the re-opening of the Manila Mint in 1920, which produced coins until the Commonwealth period.

In 1937, coin designs were changed to reflect the establishment of the Commonwealth. No coins were minted in the years 1942 and 1943 due to the Japanese occupation, but minting resumed in 1944, including production of 50 centavos coins. Due to the large number of coins issued between 1944 and 1947, coins were not minted again until 1958.

In 1958, a new, entirely base metal coinage was introduced, consisting of bronze 1 centavo, brass 5 centavos and nickel-brass 10, 25 and 50 centavos. In 1967, the coinage was altered to reflect the use of Filipino names for the currency units. 1-piso coins were introduced in 1972. In 1975, the "Ang Bagong Lipunan" series was introduced with the 5-piso coins included. Aluminium replaced bronze and cupro-nickel replaced nickel-brass that year. The Flora and Fauna series was introduced in 1983 which included 2-piso coins. The sizes of the coins were reduced in 1991, with production of 50-sentimo and 2-piso coins ceasing in 1994. The current series of coins was introduced in 1995, with 10-piso coins added in 2000.

Denominations below 1 piso are still issued but are not in wide use. In December 2008 a Philippine Congress resolution called for the retirement and demonetization of all coins less than one peso.

Banknotes

In 1852, the Banco Español-Filipino de Isabel 2a issued notes for 10, 25 and 50 pesos fuertes. In 1896, the bank added 5 pesos fuertes notes. The treasury issued notes for 1, 4 and 25 pesos fuertes in 1877.

During the Spanish-American
Spanish-American War
The Spanish–American War was a conflict in 1898 between Spain and the United States, effectively the result of American intervention in the ongoing Cuban War of Independence...

 and Philippine-American
Philippine-American War
The Philippine–American War, also known as the Philippine War of Independence or the Philippine Insurrection , was an armed conflict between a group of Filipino revolutionaries and the United States which arose from the struggle of the First Philippine Republic to gain independence following...

 wars, 1 and 5 pesos notes were issued in the name of the República Filipina.

Between 1903 and 1918, silver certificates were issued, in denominations of 2, 5, 10, 20, 50, 100 and 500 pesos. These were replaced with Treasury Certificates, issued between 1918 and 1941 in denominations of 1, 2, 5, 10, 20, 50, 100 and 500 pesos.

In 1904, the Banco Español-Filipino introduced notes in denominations of 5, 10, 25, 50, 100 and 200 pesos. In 1912, this bank changed its name to the Bank of the Philippine Islands
Bank of the Philippine Islands
Bank of the Philippine Islands is the oldest bank in the Philippines still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank...

 (BPI), continuing to issue notes until 1933. The Philippine National Bank (PNB) issued notes in 1916 in denominations of 2, 5 and 10 pesos, with emergency notes issued in 1917 for 10, 20 and 50 centavos, 1, 5, 10 and 20 pesos. Between 1918 and 1937, the PNB issued notes in denominations of 1, 2, 5, 10, 20, 50 and 100 pesos. These notes were in circulation until 1947.

The Japanese issued two series of notes. The first was issued in 1942 in denominations of 1, 5, 10 and 50 centavos, 1, 5 and 10 pesos. The second, from 1943, was in denominations of 1, 5, 10, 100, 500 and 1000 pesos.
In 1944, Treasury Certificates, featuring the word "Victory" printed on the reverse, were issued to replace all the earlier notes. These were in denominations of 1, 2, 5, 10, 20, 50, 100 and 500 pesos.

In 1949, the Central Bank of the Philippines took over paper money issue. Its first notes were overprints on the Victory Treasury Certificates. These were followed in 1951 by regular issues in denominations of 5, 10, 20 and 50 centavos, 1, 2, 5, 10, 20, 50, 100, 200 and 500 pesos. The centavo notes (except for the 50-centavo note, which would be later known into the half-peso note) were discontinued in 1958 when the English Series coins were first minted.

In 1967, the CBP adopted the Filipino language
Filipino language
This move has drawn much criticism from other regional groups.In 1987, a new constitution introduced many provisions for the language.Article XIV, Section 6, omits any mention of Tagalog as the basis for Filipino, and states that:...

 on its currency, using the name Bangko Sentral ng Pilipinas, and in 1969 introduced the "Pilipino Series" of notes in denominations of 1, 5, 10, 20, 50 and 100 piso. The "Ang Bagong Lipunan Series" was introduced in 1973 and included 2-peso notes. A radical change occurred in 1985, when the CBP issued the "New Design Series" with 500-piso notes introduced in 1987, 1000-peso notes (for the first time) in 1991 and 200-piso notes in 2002.

Philippine banknotes are currently issued in the following denominations:
  • 5 piso*
  • 10 piso*
  • 20 piso
  • 50 piso
  • 100 piso
  • 200 piso
  • 500 piso
  • 1000 piso

(* No longer being printed, but still legal tender)

New Generation Currency

In 2009 the Bangko Sentral ng Pilipinas announced that has 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 designs feature famous Filipinos and iconic natural wonders. Philippine national symbols will be depicted on coins. The BSP started releasing the initial batch of new banknotes in December 2010 while new coins will be introduced beginning 2012. Current banknotes will remain legal tender for at least three years exactly in December 2013.

"Arrovo" banknotes

In 2005, several 100-peso notes with President Gloria Macapagal-Arroyo
Gloria Macapagal-Arroyo
Gloria Macapagal-Arroyo is a Filipino politician who served as the 14th President of the Philippines from 2001 to 2010, as the 12th Vice President of the Philippines from 1998 to 2001, and is currently a member of the House of Representatives representing the 2nd District of Pampanga...

's surname misspelled as "Arrovo" were in circulation. Days after this was first found out, the BSP ordered an investigation.

Fraud problem with the 1 peso coin

By August 2006, it became publicly known that the 1 peso coin has the same size as the 1 United Arab Emirates dirham
United Arab Emirates dirham
The dirham is the currency of the United Arab Emirates. The ISO 4217 code for the United Arab Emirates dirham is AED. Unofficial abbreviations include DH or Dhs. The dirham is subdivided into 100 ....

 coin. , 1 peso is only worth 7 fils (0.07 dirham), leading to vending machine
Vending machine
A vending machine is a machine which dispenses items such as snacks, beverages, alcohol, cigarettes, lottery tickets, consumer products and even gold and gems to customers automatically, after the customer inserts currency or credit into the machine....

 fraud in the U.A.E. Similar frauds have also occurred in the US, as the 1 peso coin is roughly the same size as the Quarter
Quarter (United States coin)
A quarter dollar, commonly shortened to quarter, is a coin worth ¼ of a United States dollar, or 25 cents. The quarter has been produced since 1796. The choice of 25¢ as a denomination, as opposed to 20¢ which is more common in other parts of the world, originated with the practice of dividing...

 but is worth only about 2 U.S. cents. Newer digital parking meters are not affected by the fraud.

New Generation series errors

Several, albeit disputable, errors have been discovered on banknotes of the New Generation series and have become the subject of ridicule in social networking sites. Among these are the exclusion of Batanes
Batanes
The Province of Batanes , also called the Batanes Islands, is a Philippine province comprising ten islands that are located in the Luzon Strait between the islands of Luzon and Taiwan...

 from the Philippine map on the reverse of all denominations, the mislocation of the Puerto Princesa Subterranean Underground River on the reverse of the 500-peso bill and the Tubbataha Reef on the 1000-peso bill, and the incorrect coloring on the beak and feathers of the blue-naped parrot on the 500-peso bill. The scientific names of the animals featured on the reverse sides of all banknotes were incorrectly rendered as well, but these were eventually realized to be due to the color limitations of intaglio printing.

External links

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