History of Philippine money
[1][2][3] Long before the Spaniards came to the Philippines in 1521, the Filipinos had established trade relations with neighboring lands like China, Java, Borneo, Thailand and other settlements.
Cowries produced in gold, jade, quartz and wood became the most common and acceptable form of money through many centuries.
The original silver currency unit was the rupee or rupiah (known locally as salapi), brought over by trade with India and Indonesia.
Piloncitos have been excavated from Mandaluyong, Bataan, the banks of the Pasig River, Batangas, Marinduque, Samar, Leyte and some areas in Mindanao.
[6] The Spanish silver peso worth eight reales was first introduced by the Magellan expedition of 1521 and brought in large quantities by the Manila galleons after the 1565 conquest of the Philippines.
The earliest silver coins brought in by the galleons from Mexico and other Spanish colonies were in the form of roughly-cut cobs or macuquinas.
These pillar dollars circulated extensively not only in the Philippines but all over the world in the 18th and 19th centuries due to its beauty of design, consistency of weight and fineness, universal recognition among merchants worldwide, and a serrated edge which prevented the clipping away of the precious metal.
Locally produced crude copper or bronze coins called cuartos or barrillas were also struck in the Philippines by order of the Spanish government.
[7] In the early part of the 19th century, most of the Spanish colonies in Central and South America revolted and declared independence from Spain.
The Spanish government officials in the islands were fearful that the seditious markings would incite Filipinos to rebellion.
[8] A currency system derived from coins imported from Spain, China and neighboring countries was fraught with various difficulties.
Peso coins with Spanish or Mexican designs are also easily imported and exported overseas, occasionally emptying government and private coffers.
Its divergence with the value of gold in international trade featured prominently in the continued monetary crises of the 19th century.
The Sultanate of Sulu in the southernmost islands engaged actively in barter trade with the Arabs, Han Chinese, Bornean, Moluccan, and British traders.
Coins of Sultan Azimud Din that exist today are of base metal Tin, Silver and alloy bearing Arabic inscriptions and dated 1148 AH corresponding to the year 1735 in the Christian era.
The Philippine Republic of 1898 under General Emilio Aguinaldo issued currency backed by the country's natural resources.
Two types of two-centavo copper coins were struck at the Malolos arsenal and one and two peso paper notes hand signed by Pedro Paterno, Mariano Limjap and Telesforo Chuidian were printed and freely circulated.
This seal is composed of a much smaller eagle with its wings pointed up, perched over a shield with peaked corners, above a scroll reading "Commonwealth of the Philippines".
tell stories of going to the market laden with suitcases or "bayóng" (native bags made of woven coconut or buri leaf strips) overflowing with the Japanese-issued bills.
[14] The 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.
After the declaration of Proclamation № 1081 on September 23, 1972, the Central Bank demonetized the existing banknotes (both the English and Pilipino series) on March 1, 1974, pursuant to Presidential Decree No.
[15] All the unissued banknotes were sent back to the De La Rue plant in London for overprinting the watermark area with the words "ANG BAGONG LIPUNAN" and an oval geometric safety design.
After the declaration of Proclamation № 1081 by President Ferdinand Marcos on September 23, 1972, the Central Bank was to demonetize the existing banknotes in 1974, pursuant to Presidential Decree 378.
[16][17][18] The New Generation Currency (NGC) project started in 2007 with a formal conceptualization process[clarification needed] which was a result of the meeting of the minds[clarification needed] of people with diverse backgrounds and ideas: central bankers, artists, technocrats, historians, communication experts, and currency printers to further enhance security features and to improve durability.
[19][20] The members of the numismatic committee included Bangko Sentral Deputy Governor Diwa Guinigundo and Dr Ambeth Ocampo, chairman of the National Historical Institute.
