History of the Philippine Currency and Philippine Monetary System

Chapter III

The prevailing medium of exchange was barter although there were already some coins circulating in our country as early as the 8th century.

Commodity money such as rice, coffee, sugar, rolled silver wires, gold dust, gold, cowry money, silver nuggets, which were accepted for their weight and purity and the carabao which is our domestic animal, were used as money.

Rice has long been used as the primitive currency since it is the staple food of the people.

Pre-Spanish Regime

Penniform – gold barter ring that was being used in trading with foreign merchants between the 18th to 14th century. It is a coin made of gold in the form of a ring with a diameter of about half an inch. It had neither designs nor inscriptions.

Pre-Spanish Regime

Piloncito - tiny engraved bead-like gold bits unearthed in the Philippines. They are the first recognized coinage in the Philippines circulated between the 9th and 12th centuries. They emerged when increasing trade made barter inconvenient. It was made of crude rounded gold coin with flat sides with diameter of about three eights of an inch.

Pre-Spanish Regime

After the arrival of the Spaniards in 1521, trade was conducted by using irregular shaped coins, hammered in Mexico. Varieties of this coins were popularly called “hilis kalamay” which bore the seals of the Spanish rulers Charles II, Philip IV, and Philip V.

Spanish Regime

Hilis Kalamay - Local currency took in the minted cobs of various polygonal shapes. These silver coins usually bore a cross on one side and the Spanish royal coat of arms on the other. These were the earliest coins brought in by the galleons from Mexico.

During the reign of King Philip V that was 1700 – 1746, the first coin minted in the Philippines was called the Spanish Barilla.

Spanish Regime

Spanish Barilla – the first coin minted in the Philippines. It was made of brass and was valued at one centavo. It had an inscription which read as “Barilla Ano de 1728” in which the coat of arms of Manila was engraved on the center of the coin. It was crudely struck and its reverse in blank. Incidentally, this is how we got the term “barya” which means loose change today.

In the 17th to the 19th century – Manila became one of the major centers of trade in the Far East

Spanish Regime

Spanish Dos Mundos – also known as Mexican dollar struck in 1732 – 1772 at the Mexican mints

They came into various denominations: ocho (8), cuatro (4), and dos (2) reales. There were also the uno (1) and media (1/2) real. These coins were known for their beauty. They bore name “Dos Mundos” which indicated their widespread use in the two hemispheres. The Spaniards and the Filipinos used these coins to buy silk for export to Spain.

In 1766, a second coin was minted in the Philippines, known as Colderillas.

It was about half the size of the Spanish barilla and was made of copper. It had the shape of a parallelogram. It was valued approximately one centavo.

It was used to augment the shortage of the coins circulating due to the Spanish-English war of 1762 – 1764.

Spanish Regime

In 1766, a second coin was minted in the Philippines, known as Colderillas.

It was about half the size of the Spanish barilla and was made of copper. It had the shape of a parallelogram. It was valued approximately one centavo.

It was used to augment the shortage of the coins circulating due to the Spanish-English war of 1762 – 1764.

Spanish Regime

Isabelinas – the first gold and silver coins minted in the Philippines in 1861-1868 by the Casa Moneta de Manila, the country’s minting plant during the Spanish era. These coins marked the first time in history that the country’s name “FILIPINAS” appeared on its coinage.

Spanish Regime

Pesos Fuertes - the first Philippine bank note that was printed in 1852 issued by El Banco Español-Filipino de Isabel II.

 Five Pesetas – coins circulated in 1855. This coins

were believed to have been minted in Madrid or in Paris.

Spanish Regime