Money

Evoluti on

Jolina Aquino
John Kenneth Bayangos
Money
Money, in and of itself, might have actual value; it
can be a shell, a metal coin, or a plece of Paper.
Its value depends on the importance that people
place on it—as a medium of exchange, a
Unit of measurement, and a storehouse for
wealth.

Money allows people to trade goods and services

indirectly, it helps communicate the price
of goods (prices written in dollar and cents
correspond to a numerical amount in your
possession,
i.e. in your pocket, purse, or wallet), and it provides
individuals with a way to store their wealth in
the long-term.
The Evolution
of Philippine
Money
 P R E- HISPANIC
ERA
Long before the Spaniards came to the Philippines, trade
among the early Filipinos and with traders from the
neighboring lands like China, Java, Borneo, and Thailand
was conducted through barter.

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.
 P R E- HISPANIC
ERA
Since 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.
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.
 Spanish Era
(1521-1897)
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.
 Spanish Era
(1521-1897)
The barrilla, a crude bronze or copper coin worth about one
centavo, was the first coin struck in the country. The Filipino
term "barya", referring to small change, had its origin in
barrilla.
Spanish Era
(1521-1897)
• Coins from other Spanish colonies also
reached the Philippines and were counter-
stamped to legalize their circulation in the
country. Gold coins with the portrait of Queen
Isabela were minted in Manila.

• Silver pesos with the profile of young Alfonso

XIII were the last coins minted in Spain.
Spanish Era
(1521-1897)
• The pesos fuertes, issued by the country's
first bank, the El Banco Espanol Filipino de
Isabel II, were the first paper money circulated
in the country.
Spanish Era
(1521-1897)
 REVOLUTIONARY
ERA (1898-1899)
•Asserting its independence, the
Philippine republic of 1898
under
General emilio aguinaldo issued its own coins and
paper currency backed by thec ountry’s natural
resources.

•One peso and five peso notes

printed as republika filipina
papel Moneda de un peso and
cinco pesos were freely
circulated.
2 Centimos de peso copper
R E VO LU T I O N A R E R A ( 1 8 9 8 - 1899)REVOLUTIONARY
THE AMERICAN
PERIOD (1900-1941)
•The Americans instituted a monetary system
for The philippine based on gold and pegged
the
Philippine peso to the american dollar at the ratio of 2:1.
The us congress approved the coin age act for the
philippines in 1903.
THE AMERICAN
PERIOD (1900-1941)
•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
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. The Japanese Occupation Forces issued war notes
in high denominations. These war notes had no back up reserves,
thus, Filipinos dubbed it "Mickey Mouse" money. During the worst
inflation in Philippine history, Filipinos would go to the market laden
with bayongs of Mickey Mouse bills, since one duck egg cost 75
pesos, and a box of matches more than 100 pesos.
THE JAPANESE OCCUPATION
(1942-1945)

•• On the other hand, Guerrilla Notes or Resistance

Currencies which are in low denominations, were issued by
different provinces and, in some instances, municipalities
through their local currency boards to show resistance against
the Japanese occupation.
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 the
united states following the end of world war ii, the country
used as currency old treasury certificates overprinted with
the word“victory”.
THE PHILIPPINE
REPUBLIC
•With the establishment of the
central bank of the Philippines in
1949, the first Currencies issued
were the English series notes
printed by Thomas de la rue &co.,
Ltd. In England and the coins are
minted at the US Bureau of mint.
THE PHILIPPINE
REPUBLIC
•The filipina nation 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
THE PHILIPPINE
REPUBLIC
Were circulated, which were printed at
the security printing plant starting in
1978.
•A new wave of changes wept through
the philippine coin age system with the
flora And fauna coins initially issued in
1983.These series featured national
heroes and Species of flora and fauna.
THE PHILIPPINE
REPUBLIC
•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.
VICTORY SERIES ENGLISH SERIES (•QUIRINO ERA)
BAGONG LIPUNAN
NEW DESIGN SERIES ( CO RY AQUINO ERA)
SERIES (MARCOS
ERA)
NEW GENERATION Polymer Banknotes
SERIES
The properti es
of a currency
and functi ons of
money.
Money is commonly referred to as currency. Economically, each government
has its own money system. Money is a liquid asset used in the settlement of
transactions. It functions based on the general acceptance of its value within a
governmental economy and internationally through foreign exchange. The
current value of monetary currency is not necessarily derived from the
materials used to produce the note or coin. Instead, value is derived from the
willingness to agree to a displayed value and rely on it for use in future
transactions.

This is money's primary function: a generally recognized medium of exchange

that people and global economies intend to hold, and are willing to accept as
payment for current or future transactions.
What Are the Properti es of Money?

Fungible
Units of the good should be of relatively uniform quality so that they are
interchangeable with one another. If different units of the good have
different qualities, then their value for use in future transactions may not
be reliable or consistent.

Durable

The physical character of the good should be durable enough to retain

its usefulness in future exchanges and be reused multiple times. A
perishable good or a good that degrades quickly with use in exchanges
will not be as useful for future transactions.
What Are the Properti es of Money?
Portable
It should be divisible into small quantities so that people appreciate its
original use value - highly enough that a worthwhile quantity of the good can
be conveniently carried or transported. An indivisible good, immovable good,
or good of low original use-value can create issues. Trying to use a non-
portable good as money could produce transaction costs of either physically
transporting large quantities of the low value good or defining practical,
transferable ownership of an indivisible or immobile object.

Recognizable
The authenticity and quantity of the good should be readily ascertainable to
the
users so that they can easily agree to the terms of an exchange. Trying to use a
non-recognizable good as money produces transaction costs of agreement on
What Are the Properti es of Money?

Stable

The value that people place on a good in terms of the other goods that they are
will to trade should be relatively constant or increasing over time. A good whose
value varies widely up and down over time, or consistently loses value over time
is less suitable. Trying to use a non-stable
Functi on of Money
UNIT OF AC CO U N T
Due to its use as a medium of exchange for both buying and selling and its use to
assign prices to all kinds of other goods and services, money c a n b e used to keep
track of the money gained or lost ac ros s multi ple transacti ons, and to compare
money values of various combinati ons of diff erent quanti ti es of diff erent goods
and ser vices mathemati cally.

STORE OF VALUE
Becau se money's usefulness as a medium of exchange in transacti ons is
inherently future- oriented, it provides a means to store value obtained through
current producti on or trade for use in the future in the form of other goods and
services. This facilitates saving for the future and engaging in transacti ons over
long distances possible.
Functi on of Money
STANDARD OF DEFERRED PAYMENT
Becau se money's usefulness as a medium of exchange in transacti ons is
inherently future- oriented, it provides a means to store value obtained through
current producti on or trade for use in the future in the form of other goods and
services. This facilitates saving for the future and engaging in transacti ons over
long distances possible.
Kinds of Money
Kinds of Money
1.Market-Determined Money
Money originates as a feature of the spontaneous order of markets through the
practi ce of barter (or direct exchange), where people trade one good or service
directly for another good or service. In order for a trade to o c c u r in barter, the
parti es to the exchange must want the good or service that their cou nter- parti es
have to offer.

2. Legal Tender and Fiat Money

Someti mes a market- determined money is offi cially recognized as legal money
b y a government. Under some circumstances, it c a n b e used to fulfill the
functi ons of money in an economy. Typically this involves a legal mandate to use
a specifi c good as money (known a s a legal tender law) or some kind of
prohibiti on on the use of money ( s u c h as the use of cigarett es a s a medium of
exchange among prison inmates).
Kinds of Money
3. Cryptocurrencies
Cr yptocurrencies are p e e r- b as ed money,
s u c h as bitcoin. This type of money is
electronically b as ed on electronic accounti ng
entries that c a n b e used as a medium of
exchange. Cryptocurrencies share many
characteristi cs of both market-determined
money and fi at money.
Thank you!