Philippine currency

Philippine currency
Name	Philippine currency
Local name	Piso
Iso code	PHP
Subunit name	sentimo
Subunit to unit	100
Issued by	Bangko Sentral ng Pilipinas
Introduced	1903 (modern series)

Philippine currency is the legal tender used in the Republic of the Philippines, denominated in pesos and centavos. It has evolved through influences from indigenous trade, the Spanish Empire, the United States colonial period, the Japanese occupation of the Philippines during World War II, and postwar independent institutions. The currency reflects interactions with regional centers such as Manila, Cebu, Zamboanga, and global hubs like New York City, London, and Tokyo through trade, remittances, and finance.

History

The archipelago’s monetary history traces to precolonial exchange systems involving piloncitos and barter among polities like Tondo (historical polity), Butuan, and Sulu Sultanate with links to Srivijaya, Majapahit, and Song dynasty merchants. Spanish colonial administration introduced the Spanish dollar and silver coinage administered via the Real system and galleon trade connecting Manila Galleon routes to Acapulco. In the 19th century, reforms under officials such as José Rizal’s contemporaries and administrators shifted minting practices influenced by Queen Isabella II of Spain’s policies. After the Spanish–American War (1898), sovereignty passed to the United States of America; the Insular Government and later the Commonwealth of the Philippines established the peso fuerte and the Philippine National Bank issued notes. During the Japanese occupation of the Philippines the Japanese-issued currency altered circulating tender; resistance currencies and guerrilla economies emerged. Post-1946 independence saw the Central Bank of the Philippines (later Bangko Sentral ng Pilipinas) introduced reforms, redenominations, and series like the English series, the Pilipino series, the Ang Bagong Lipunan series under Ferdinand Marcos, and the New Design/BSP series. Modernization included partnerships with mints and printers in France, United Kingdom, and United States Mint contractors.

Denominations and banknotes

Banknote denominations have ranged historically from lower centavo notes to high-value bills, including commemorative issues tied to events such as independence anniversaries, state visits, and centennials celebrated in Quezon City and Manila. Current standard denominations commonly issued by the Bangko Sentral ng Pilipinas include notes that correspond to purchase power in metropolitan regions like Makati, Ortigas Center, and provincial centers like Davao City and Iloilo City. Design motifs honor national figures such as José Rizal, Andrés Bonifacio, Manuel L. Quezon, Sergio Osmeña, and institutions like University of the Philippines and Ateneo de Manila University, as well as landmarks including Rizal Monument, Malacañang Palace, and Taal Volcano. Special banknotes commemorate events like the centenary of the Philippine Revolution and anniversaries of the People Power Revolution (1986). Printing contracts and design competitions have involved firms linked to De La Rue, Giesecke+Devrient, and local artists associated with cultural bodies such as the National Historical Commission of the Philippines and National Museum of the Philippines.

Coins

Coinage in the Philippines evolved from gold and silver trade pieces to modern base-metal coinage struck for circulation and numismatic sets. Early coin types include Spanish-era reales and later U.S.-era coins marked by mints in San Francisco, Philadelphia, and Denver. Contemporary coins include denominations used daily in markets in Divisoria, Binondo, and provincial palengkes; commemorative coins honor figures such as Emilio Aguinaldo and events like the Declaration of Philippine Independence (1898). Minting technology and suppliers have involved state mints and international partners; coin designs often depict flora and fauna protected under laws like the Wildlife Resources Conservation and Protection Act and sites such as Tubbataha Reefs Natural Park. Collector issues are sold through institutions including the Bangko Sentral ng Pilipinas and numismatic societies linked to Philippine Numismatic and Antiquarian Society.

Monetary policy and issuing authority

Monetary authority rests with the Bangko Sentral ng Pilipinas established under the 1993 Constitution of the Philippines and implementing statutes like the New Central Bank Act (Republic Act No. 7653). The BSP formulates policy tools such as policy rates, reserve requirements, and open market operations interacting with commercial banks like Banco de Oro, Bank of the Philippine Islands, Land Bank of the Philippines, Metropolitan Bank and Trust Company, and institutions such as the Philippine Deposit Insurance Corporation. The BSP coordinates with fiscal authorities in Malacañang Palace and financial regulators like the Securities and Exchange Commission (Philippines) and the Insurance Commission on financial stability. International cooperation includes engagement with the International Monetary Fund, World Bank, Asian Development Bank, and regional arrangements like the Association of Southeast Asian Nations. Policy responses have addressed inflation episodes, balance of payments pressures, and capital flow volatility seen during crises influenced by events like the Asian financial crisis (1997) and global shocks tied to 2008 financial crisis.

Exchange rate and circulation

The peso’s exchange rate regime has shifted from fixed parities to managed floats interacting with currency markets in London, New York City, and regional centres such as Singapore and Hong Kong. The BSP engages in foreign exchange operations in reserves held across custodial arrangements including sovereign accounts and interactions with correspondent banks in Tokyo, Frankfurt, and San Francisco. Currency circulation reflects remittances from overseas Filipino workers in destinations like Saudi Arabia, United Arab Emirates, United States of America, and Japan, tracked by institutions such as the Philippine Statistics Authority and Bangko Sentral ng Pilipinas. Cash usage varies between urbanized areas like Manila and remote island municipalities in regions such as Bicol, Cordillera Administrative Region, and ARMM; electronic payment adoption involves platforms tied to banks and private firms in fintech hubs like Bonifacio Global City.

Counterfeiting and security features

Counterfeiting has prompted enhancements including security threads, watermark portraits of national heroes like José Rizal, see-through windows, intaglio printing, latent images, and optically variable inks developed with suppliers such as De La Rue and Giesecke+Devrient. Enforcement involves the Philippine National Police, National Bureau of Investigation, and the Bangko Sentral ng Pilipinas collaborating with international agencies including Interpol and customs authorities at ports such as Port of Manila. Public awareness campaigns target markets like Quiapo and transport hubs such as Ninoy Aquino International Airport, while legal penalties derive from statutes enforced by courts including the Supreme Court of the Philippines.

Category:Currencies of the Philippines