History of Philippine Money PDF

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History of Philippine Money

Pre-Hispanic Era Long before the Spaniards came to the Philippines in 1521, the Filipinos had established trade relations with neighboring lands. The inconvenience of the barter system led to the adoption of a specific medium of exchange – the cowry shells. Cowries produced in gold, jade, quartz and wood became the most common and acceptable form of money through many centuries. The Philippines is naturally rich in gold. It was used in ancient times for barter rings, personal adornment, jewelry, and the first local form of coinage called Piloncitos. These had a flat base that bore an embossed inscription of the letters “MA” or “M” similar to the Javanese script of the 11th century. It is believed that this inscription was the name by which the Philippines was known to Chinese traders during the pre-Spanish time. Barter rings made from pure gold, were handfashioned by early Filipinos during the 11th and the 14th centuries. These were used in trading with the Chinese and other neighboring countries together with the metal gongs and other ornaments made of gold, silver and copper. Spanish Era 1521-1897 The cobs or macuquinas of colonial mints were the earliest coins brought in by the galleons from Mexico and other Spanish colonies. These silver coins usually bore a cross on one side and the Spanish royal coat-of-arms on the other. The Spanish dos mundos were circulated extensively not only in the Philippines but the world over from 1732-1772. Treasured for its beauty of design, the coin features twin crowned globes representing Spanish rule over the Old and the New World, hence the name “two worlds.” It is also known as the Mexican Pillar Dollar or the Columnarias due to the two columns flanking the globes. Due to the shortage of fractional coins, the barrillas, were struck in the Philippines by order of the Spanish government. These were the first crude copper or bronze coins locally produced in the Philippines. The Filipino term “barya,” referring to small change, had its origin in barrilla. In the early part of the 19th century, most of the Spanish colonies in Central and South America revolted and declared independence from Spain. They issued silver coins bearing revolutionary slogans and symbols which reached the Philippines. The Spanish government officials in the islands were fearful that the seditious markings would incite Filipinos to rebellion. Thus they removed the inscriptions by counter stamping the coins with the word F7 or YII. Silver coins with the profile of young Alfonso XIII were the last coins minted in Spain. The pesos fuertes, issued by the country’s first bank, the El Banco Español Filipino de Isabel II, were the first paper money circulated in the Philippines.

Revolutionary Period 1898-1899 General Emilio Aguinaldo, the first Philippine president, was vested with the authority to produce currencies under the Malolos Constitution of 1898. At the Malolos arsenal, two types of twocentavo copper coins were struck. Revolutionary banknotes were printed in denominations of 1, 5, and 10 Pesos handsigned by Pedro Paterno, Mariano Limjap and Telesforo Chuidian. With the surrender of Aguinaldo to the Americans, they were withdrawn from circulation and declared illegal currency. American Period 1900-1941 With the coming of the Americans 1898, modern banking, currency and credit systems were instituted making the Philippines one of the most prosperous countries in East Asia. The monetary system for the Philippines was based on gold and pegged the Philippine peso to the American dollar at the ratio of 2:1. The US Congress approved the Coinage Act for the Philippines in 1903. The coins issued under the system bore the designs of Filipino engraver and artist, Melecio Figueroa. Coins in denomination of one-half centavo to one peso were minted. The renaming of El Banco Espanol Filipino to Bank of the Philippine Islands in 1912 paved the way for the use of English from Spanish in all notes and coins issued up to 1933. Beginning May 1918, treasury certificates replaced the silver certificates series, and a one-peso note was added. The Japanese Occupation 1942-1945 The outbreak of World War II caused serious disturbances in the Philippine monetary system. Two kinds of notes circulated in the country during this period. The Japanese Occupation Forces issued war notes in big denominations. Provinces and municipalities, on the other hand, issued their own guerrilla notes or resistance currencies, most of which were sanctioned by the Philippine government in-exile, and partially redeemed after the war. The Philippine Republic A nation in command of its destiny is the message reflected in the evolution of Philippine money under the Philippine Republic. Having gained independence from US following the end of World War II, the country used as currency old treasury certificates overprinted with the word "Victory". With the establishment of the Central Bank of the Philippines in 1949, the first currencies issued were the English series notes printed by the Thomas de la Rue & Co., Ltd. in England and the coins minted at the US Bureau of Mint. The Filipinization of the Republic coins and paper money began in the late 60's and is carried through to the present. In the 70's, the Ang Bagong Lipunan (ABL) series notes were circulated, which were printed at the Security Printing Plant starting 1978. A new wave of change swept through the Philippine coinage system with the flora and fauna coins initially issued in 1983. These series featured national heroes and species of flora and fauna. The new design series of banknotes issued in 1985 replaced the ABL series. Ten years later, a new set of coins and notes were issued carrying the logo of the Bangko Sentral ng Pilipinas.

As the repository and custodian of country's numismatic heritage, the Museo ng Bangko Sentral ng Pilipinas collects, studies and preserves coins, paper notes, medals, artifacts and monetary items found in the Philippines during the different historical periods. It features a visual narration of the development of the Philippine economy parallel to the evolution of its currency.

Demonetization of the Old Banknote Series Demonetization is the process by which a central bank removes the monetary value of a legal tender currency it issues. Demonetized currencies are no longer accepted as payment for goods and services. The process of demonetization is widely practiced throughout the world, though reasons for demonetizing can be varied. Among the common reasons are the following:      

The prevention of counterfeiting Benchmarking with other countries A change in the type or form of government A change in the type of currency as part of political or social reform Redefining the value of money in response to hyperinflation Shift to a single design series of currency in countries where more than one series are in circulation

The BSP is demonetizing the old banknote series as a way to safeguard the integrity of our currency. As a matter of practice, central banks around the world change the design of their currencies that have been in circulation for over 10 years. In the case of the Philippines the old banknote series, introduced in 1985 or 30 years ago, is being replaced by the New Generation Currency (NGC) series which was launched in 2010. Demonetization is within the BSP’s jurisdiction as stated in RA No. 7653, The New Central Bank Act. The Bangko Sentral may call in for replacement of notes of any series or denomination which are more than five (5) years old and coins which are more than ten (10) years old. Notes and coins called in for replacement in accordance with this provision shall remain legal tender for a period of one year from the date of call. After this period, they shall cease to be legal tender but during the following year, or for such longer period as the Monetary Board may determine, they may be exchanged at par and without charge in the Bangko Sentral and by agents duly authorized by the Bangko Sentral for this purpose. After the expiration of this latter period, the notes and coins which have not been exchanged shall cease to be a liability of the Bangko Sentral and shall be demonetized. The Bangko Sentral shall also demonetize all notes and coins which have been called in and replaced.

English Series (1949-1974) When the American liberation forces arrived in 1944, they brought the currency called the Victory Series No. 66. With the creation of the Central Bank of the Philippines in 1949, came the issuance of the English Series. They were in denominations 1, 2, 5, 10, 20, 50, 100, 200 and 500 pesos; all bearing portraits of Filipino heroes on the obverse, vignettes in Philippine history on the reverse, and worded in English language. On the other hand, all denominations of the Victory Series

No. 66 were overprinted with “Central Bank of the Philippines” on the reverse side, and remained legal tender until July 30, 1964. The two highest denominations of the English Series were later withdrawn from circulation on December 31, 1957, pursuant to R.A. No. 1516. Only notes of 1 up to 50 pesos continued to be printed until 1961. Small-denomination notes were also printed from 1951 through 1957 (5-, 10-, 20- and 50centavos) to replace the US-Filipinas metallic coins. In 1955, the Half-Peso note of bigger dimensions also went into circulation. On January 5, 1970, these small notes ceased to be legal tender. Pursuant to Presidential Decree No. 378, all banknotes of the English Series were considered demonetized after February 28, 1974. Pilipino Series (1969-1974) To complete the Filipinization of Philippine currency, the Central Bank started to issue the series of multi-colored Central Bank notes worded in Pilipino and similarly bearing the portraits of Filipino heroes on the reverse, and vignettes in Philippine history on the reverse toward mid-1969. This series called Pilipino series came in denominations 1, 5, 10, 20, 50 and 100. The first five notes have been widely circulated while the issuance of the 100-piso bills was limited. Together with the English Series, this Pilipino Series was considered demonetized after February 28, 1974 pursuant to PD 378. Ang Bagong Lipunan Series (1973-1993) The Ang Bagong Lipunan (ABL) series was issued by the Central Bank of the Philippines in line with Presidential Decree No. 168 dated April 2, 1973. The Ang Bagong Lipunan (literally means New Society) legend overprinted on the banknotes was meant to symbolize then President Marcos’ New Society which marked the era of reforms on social, economic and political structure of the government. This legend was the main difference in the design between ABL and Pilipino series. The lowest denomination in the ABL series was 2-piso and the highest was 100-piso. The 2-piso denomination carried the design elements of the 1-piso Pilipino series. The ABL banknote series was considered demonetized after February 2, 1996. New Design Series (NDS) (1985-2017) When Martial Law was lifted in 1981, the Central Bank started to print and mint an entirely new series of Philippine currency notes and coins which are contemporary and forward looking, adopting the latest trend of anti-counterfeiting features. On June 12, 1985, the BSP issued the New Design Series starting with the 5-piso banknote with the face of Emilio Aguinaldo on the obverse side. The following month, the 10-piso banknote with the face of Apolinario Mabini on the obverse side was issued. In early 1986, a new 20-piso banknote appeared. After the 1986 People Power Revolution and the new 1987 Constitution was promulgated, the 500-piso banknote with the face of Benigno Aquino, Jr. on the obverse side was introduced. In 1991, the BSP issued for the first time a 1000-piso banknote, containing on the obverse side the composite portraits of Jose Abad Santos, Josefa Llanes Escoda and Vicente Lim. The second major political upheaval called EDSA II in 2001 was depicted on the reverse side of the 200-piso showing Gloria Macapagal-Arroyo being sworn into office at the EDSA Shrine. She is the first president whose image has been included in a banknote while in office. On the obverse side

of the banknote is the portrait of his father, Diosdado Macapagal. The 200-piso NDS which was issued in 2002, was the last denomination to be added in the series. In the NDS, the country’s social and political development and economic achievements were highlighted. The design was made more distinctly Pilipino through the adoption of ethnic designs at the background of all the denominations instead of the embellishing lacework patterns from western culture that were depicted in the earlier series. The seal of the Central Bank of the Philippines in the obverse and the size of the Pilipino series had been retained. After the passage of the New Central Bank Act of 1993, the New Design Series bears the new seal of the Bangko Sentral ng Pilipinas. In the latter part of 1997, the revised 10-piso banknote, with portraits of Apolinario Mabini and Andres Bonifacio on the obverse side, was issued. In 1998, the 100,000-piso Centennial banknote, measuring 8.5"x14", accredited by the Guinness Book of World Records as the world's largest legal tender note was issued in a limited quantity of 1000 pieces to commemorate the celebration of the Centennial of Philippine Independence. Along with this was the launching of the 2000-piso Centennial Note, measuring 216 mm x 133 mm and bearing the signature of President Joseph E. Estrada, on December 1, 1998. Also, in 1998, the year of printing was added at the bottom of the denomination value located at the upper left corner of the obverse. In 1999, the names of the signatories on the bills were added starting with banknotes featuring the signature of President Joseph Estrada. During the Estrada Administration, the practice in use since the Commonwealth, of reproducing the signature of the President of the Philippines over the legend "President of the Philippines" was abandoned in favor of explicitly stating the president's name. Meanwhile, in the latter part of 1990’s, colored reproduction machines became available in commercial quantity and has become a big threat to the integrity of the currency. As a result, in 2001, BSP decided to enhance the security features of the of 1000, 500, and 100-piso banknotes, including the 200-piso which was issued in 2002, by incorporating the iridescent band and the windowed security thread to combat counterfeiting made out of colored copiers. Pursuant to BSP Circular No. 954, Series of 2017, the NDS banknotes were demonetized after 30 June 2017.

Demonetization of the Old Coin Series English Series (1958-1979) In 1958, the centavo notes were discontinued and a new, entirely base metal coinage was introduced, consisting of bronze 1 centavo, brass 5 centavos and nickel-brass 10, 25 and 50 centavos. The half-peso ceased to exist; the 25-centavo coin replaced the 20-centavo note; 50-, 10and 5-centavo denominations were maintained. This series was considered demonetized after August

31, 1979, except for the 10-centavo denomination that was considered demonetized only after January 2, 1998. Pilipino Series (1967 – 1998) In 1967, the coinage was altered to reflect the use of Filipino names for the currency units. The “Pilipino” coins bore portraits/profiles of Filipino heroes with legends inscribed in Pilipino, the national language. New one-piso coins were put in circulation to replace the one-peso notes. The coins were demonetized after January 2, 1998. Ang Bagong Lipunan (1975 - 1998) In 1975, the "Ang Bagong Lipunan" series was introduced with different designs, specifications and denominational mix from the Pilipino series. Aluminum replaced bronze and cupro-nickel replaced nickel-brass coins. The 5-piso coin was introduced while the 50-sentimo coin was deleted in the series. The entire series of ABL coins was considered demonetized after January 2, 1998. Flora and Fauna Series (1983 – 1998) The Flora and Fauna series was introduced in 1983 which included 2-piso coins. The coins featured portraits of renowned Filipino patriots and heroes on the obverse and rare species of fauna, flora and marine life indigenous to the Philippines were represented on the reverse. This series circulated simultaneously with 10-centavo English, all denominations of Pilipino and Ang Bagong Lipunan series. Improved Flora and Fauna Series (1991 – 1998) The sizes of the coins were reduced in 1991 thus the Flora Fauna Series was renamed Improved Flora and Fauna. Along with this improvement was the introduction of 5-piso coin to replace the 5-piso banknote and save on the cost of printing considering that 5-piso banknote was the most widely circulated denomination. Other denominations of the Flora and Fauna such as the 50-, 10-, 5and 1-sentimo were not anymore improved. This series together with the 10-centavo English, all denominations of Pilipino, Ang Bagong Lipunan and Flora and Fauna were considered demonetized after January 2, 1998.

Current Banknotes and Coins in Circulation Pursuant to the New Central Bank Act, the BSP has the sole power and authority to issue currency, within the territiry of the Philippines. Notes and coins issued by the BSP are liabilities of the BSP and may be issued only against, and in amounts not exceeding, its assets. All notes and coins issued by the BSP are fully guaranteed and are legal tender in the Philippines for all debts, both public and private. The following are the current banknotes and coins in circulation issued by BSP:  BSP Coin Series (1995 - Present)  New Generation Currency Banknotes Series (2010 - Present)  New Generation Currency Coin Series (2018 - Present)

BSP Coin Series (1995 – Present) In 1995, a new set of coins and notes was issued which carried the logo of the new BSP: 5and 1-piso and 25-, 10-, 5- and 1-sentimo. On July 10, 2001, BSP issued the 10-piso coin for general circulation to commemorate its 8th year anniversary. It has the profiles of Andres Bonifacio and Apolinario Mabini in a con-joint or in tandem manner on the obverse side. The reverse side bears the seal of the Bangko Sentral ng Pilipinas which is consistent with the common reverse design of the other six denominations. This has been an additional denomination to the current coin circulation and a replacement for the 10-piso NDS banknote. New Generation Currency Series (2010-present) In 2009, the Bangko Sentral ng Pilipinas announced that it 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 design features famous Filipinos and iconic natural wonders. Philippine national symbols will be depicted on coins. To provide a smooth transition from the New Design Series to New Generation Currency series, BSP purposely retained some NDS features, such as, the size, predominant colors and the featured personalities in the NGC, except for the portrait of President Corazon Aquino which is an added portrait on the 500-piso note. The BSP started releasing the initial batch of new banknotes on December 16, 2010. The NGC will co-exist with the NDS approximately until 2014, while BSP is building up its capability to print and produce NGC banknotes with the latest anti-counterfeiting security features incorporated through advanced technologies, benchmarked worldwide. Color plays an important part in the design, accentuating key elements such as value numerals, seals and note edges. The inclusion of large intaglio printed numbers on the front differentiates each denomination to provide assistance for the visually impaired. New Generation Currency (NGC) Coin Series On 26 March 2018, the BSP started the release of the full set of the New Generation Currency (NGC) Coin Series comprised of the 10-Piso, 5-Piso, 1-Piso, 25-Sentimo, 5-Sentimo and the 1Sentimo into circulation. The NGC Coin Series design features enhanced the aesthetics and security of the coins. In particular, micro-printed details using laser-engraving technology were included ...