Concept of Money

Our monetary system developed to meet

the changing needs of the economy.

Primitive economies consisted largely of

self-sufficient units or groups that lived
by means of hunting, fishing, and simple
agriculture.

There was a need to exchange goods and

services.
Money
as anything authorized by law.

generally accepted as medium of

exchange.

one form in which we keep our

wealth.

As defined by Farlex Dictionary, Money

is a Currency and coin that are
guaranteed as legal tender by the
government.
Characteristics of
Good Money
•!•General acceptability
•!•Durability
•!•Portability
•!•Divisibility
•!•Stability of Money Value
•!•Cognizability
•!•Uniformity
•!•Malleability
Importance of Money
 Money simplifies matters.
 Money becomes the medium of exchange.
With money, there is low-uncertainty-high-
exchangeability requirement.
Money also contributes to economic
development and growth.
 Money is a store of value.
Functions of Money
As a medium of exchange.

 Unit of account or standard of value.

Store of value

Standard of deferred payment.

 Sources:

Farlex Dictionary

Alminar-Mutya, R. (2002). Introduction to

Philippine Money, Credit, and Banking.
Brgy. Ugong, Pasig City: Capitol
Publishing House, Inc.
•
 HISTORY AND
REVOLUTION OF MONEY
 Bangko Sentral ng Pilipinas
- nation’s central monetary authority
 Museo ng Bangko Sentral ng
Pilipinas
- formerly Central Bank
Museum
- 1974
- showcases the banks collection of
currencies
- collects, studies, preserve coins,
paper notes, monetary items
PRE-HISPANIC ERA
 piloncitos: first
recognized form
of coinage in
the country

 Barter rings:
other objects used
as medium of
exchange
SPANISH ERA
 Galleon Trade
- was responsible for
transforming Manila
into a trade center for
oriented goods

 Cobs or macuquinas:
odd-shaped selver coins
SPANISH ERA

Others coins that

followed:

- dos mundos or
pillar dollars

- counterstamped
coins

- Portrait series
SPANISH ERA

 18th Century: Royalty of Spain

authorized the production of
copper coins by the
Ayuntamiento or Municipality of
Manila

 Barrillas: copper coins

SPANISH ERA
 Pesos fuertes: first bank notes that
were issued in 1852
SPANISH ERA

 Casa de Moneda de Manila

- minted the first gold coins
with the word “Filipinas” inscribed,
which were called Isabelinas and
Alfonsinos
Revolutionary Period

-Two types of 2- centavo coins

were struck in the army weapon
store of Malolos

- rare collection

-paper notes were also issued, but

the circulation was limited
American Regime

- US Congress passed the Philippine

Coinage Act, which authorized
the mintage of silver coins from
1903 to 1912
American Regime
 Silver Certificate: were issued until
1918
American Regime
 Treasury Certificate: replaced
Silcer Certificate from 1918 to
1935
American Regime

 Manila Mint
-produced coins until the
Commonwealth period

- first seat of the Central

Bank
JAPANESE OCCUPATION:
WORLD WAR II
 Japanese Invasion Money
- Japanese Government
JAPANESE OCCUPATION:
WORLD WAR II
 Guerrilla Notes or Resistance
Currencies
- Filipino Guerrillas
Republic Period

 Central Bank of the Philippines

- created by the Republic
Act No. 265, January 3, 1949
Republic Period
 Victor notes: issued by CBP with
overprint “Central Bank of the
Philippines”
Republic Period
 English Series
- first bank notes issued by CBP
Republic Period
 Ang Bagong Lipunan series: 1973
Republic Period
 New Design Series: 1985
Republic Period

Central Bank Coins

 English Series: 1959
Republic Period

 Pilipino series: 1967

Republic Period

 Ang Bagong Lipunan series:

1975
Republic Period

 Flora and Fauna: 1983,

improved in 1992
Republic Period

 Improved Faura anf Fauna

series
 Bukid, Czarina
Cruz, Valerie Rochelle
Parangan, Ellaine Vinzyl
206C LC2