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1521- Philippines was already having trade relations with nearby countries such as Java, China, Siam and Macau.
8th century- The prevailing medium of exchange was barter although there were some
coins circulating in our country
Rice has been used as the principal primitive currency since it is the staple food of the people.
Between the 8th to the 14th century the penniform gold barter ring was being used in trading with foreign marchants. It is coin made of gold in the form of a ring with a dimeter of about half an inch.
Piloncito- was also circulated in the island. It was made of crude
rounded gold coin with a flat side and with a diameter of about three eights of an inch.

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1521- trade was conducted by using irregular shaped coins, hammered in Mexico, Varieties of these silver coins were popularly called “hilis kalamay” which bore the seals of the Spanish rulers Charles II, Philip IV, and Philip V.
1571- Coins that were minted in Mexico like the silver cobs which are called cabo de bara de plata in Spanish were known to be the first coins that were widley circulated during and after the region of King Philip II.
“Barilla Ano de 1728”- in which the
coat of arms of Manila was engraved on the center of the coin. It was crudely stuck and its reverse is blank. Incidentally, this is how we got the term barya which means loose change today.
1732-1772- The Spanish Dos Mundos also known as theMexican pillar dollar were struck in Mexican Mints
“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.
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
1770- the Spanish government ordered from the mint of Spanish Mexico 6,000 silver quartillos. These coins were minted specifically for the Philippines. It had a diameter of 11.5 millimeters.
1820-1830 the octavos and cuartos with the inscription bearing similar
designs were circulated.Meanwhile, Mexico, Peru, Bolivia, Chile, Argentina and other countries in the Central and South America became independent from Spain, after a successful war.
1880- the value of silver peso was higher than that of the American gold dollar. This explains why the Chinese traders did not want gold coins but instead silver and reals.
1852- the first Philippine bank note was printed. It was called the pesos Fuertes issued by the El Banco Espanol-Filipino de Isabel II. In 1855, the Eve pesetas silver coins were circulated. These coins were believed to have been minted either in Madrid or in Paris.
1887- the Isabel silver one real was issued and the word Manila was
engraved below the neck of Queen Isabel II. In 1814, Manila was made a port of entry to foreign ships.
1859- they issued the 20.40 and 80 Reaux (reals). It had the following words engraved on the overse side: “Isabelle II Reiner D' Espangne".
1877-  a royal decree was promulgated to allow Manila Mint to coin silver coins of the same fineness as the Spanish coins of .835 instead of the .900.
1880 - gold coins were minted of the same weight and fineness as the previous ones. It bore the bust of King Alfonso XIII
1887- the first Treasury Certificates were issued bearing the official seal of the Philippine Government. It bore the signatures of Clem de Santiago, the Insular Treasurer.
1886-1931 — Fractional coins were minted in denominations one
centavo and two centavos made of copper specifically in 1894. It had the diameters of 20 and 30 millimeters respectively
1897- several coins were received by the Philippines from the Spanish government in Madrid to alleviate a shortage of coins because of the great increase of world trade which affected the country.

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Emilio Aguinaldo who was the leader orate Philippine Revolution, issued paper money that was backed up by the resources of the Philippines. These notes were in Spanish and bore the signature of Pedro A. Paterno, the President of the Council of State at that time. These were considered the Second Treasury Certificates that were issued by the Philippines.
1899-Emilio Aguinaldo issued coins minted  in denominations of two centimos, which were made of copper. It had a diameter of 25 millimeters and had the inscription on the overse
REPUBLICA FILIPINA around the
upper half portion of the edge, with the sun and the three stars in the center,the rugged islands below the sun, and the year 1899 at the bottom. The reverse showed the words: LIBERATED on top and the words: CENTIMOS DE PESO on the bottom of the coin.

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August 28,1898- This
was the date when the American Military Governor started to perform his official duties. After the termination of the Treaty of Paris, which was signed on December 10, 1898 and ratified by the American Senate on February 6, 1899, the sovereignty of the United States over the Philippines was  established.
Mexican Silver Dollar or Peso Containing Eight Reals-Spanish-Filipino silver peso of eight reels; Filipino silver peseta which was equivalent to 1/5 of the peso; Filipino silver ten centavos which was equivalent to 1/10 of the
peso; Filipino copper centavo with an equivalent of 1/100 of a peso; Filipino copper cuarto where 20 cuartos equal to the one real and eight reals to a peso were allowed to circulate.
American Dollar- The American Dollar was allowed by the American Military to circulate and was declared legal tender. Originally, the Americans wanted to make the U.S. Dollar the sole currency in the country but this met serious objections from the Filipinos. Many of the businessmen at that time preferred the Mexican Silver Dollar or peso to which they were accustomed.
1901- an American expert in Banking and Finance, Charles Connant came to the Philippines as a financial adviser of the government. He then
recommended a monetary system for the country, which was the gold
exchange standard. The monetary unit was based on gold.
Gold Exchange Standard-The American Congress acted upon this recommendation in March 2, 1903, when they passed the Philippines Coinage Act contained in the organic Act of July 1902.
The law provided that the monetary unit of value of the Philippines was a theoretical gold peso containing 12.9 grains of gold 0.9 fine. The American dollar was containing 25.8 grains of gold 0.9 fine so that the value of the peso was exactly one-half of the American Dollar
The coinage of silver pesos containing 416 grams of silver 0.9 fine. This silver peso, which was half of the value of the dollar or equivalent to 50 cents was basic currency unit. Subsidiary coins with denominations of 50 centavos, 20 centavos (peseta) and 10 centavos all made of silver 0.9 fine, were circulated. Five centavos nickel, 1 centavo copper and one-half centavo copper were also circulated.
Treasury Certificates in various
nominations of P500, P100, P50, P20, P10, P5, P2 and P1 were issued. These certificates were representative paper money because they represented the silver coins of equal value reserves.
Part of the Gold Standard Fund was deposited in the National Treasury of Manila and a greater part was deposited in designated depository banks in America.

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The newly created Philippine National Bank was authorized to issue the issue the Philippine Bank Notes. These notes were not legal tender.
It was payable to the bearer and the bearer was promised to the corresponding equivalent in treasury certificates, a silver peso or subsidiary coins.
The El Banco De Las Islas Filipinas known as the Bank of the Philppine Island was authorized to issue its own bank notes. These notes were deemable by the issuer. The notes were not made legal tender.

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1993 -the United States of America abandoned the gold standard when the United States President;Franklin Delano Roosevelt proclaimed the gold embargo in his territories and colonies.
The Philippine peso was kept as par with the dollar at an exchange rate of 2 to 1. Under the Gold Reserve Act of 1934, the dollar had to be devalued from 25.8 grains of gold .9 fine to 15 15/21 grains of gold .9 fine
Gold value of the Philippine peso
had to be devalued from 12.9 grains of gold to 7 13/21 grains of gold .9 fine since the Philippine Monetary System was linked to the United States.
The Philippine gold reserves were increased by 40.94 percent. The Gold Standard Fund was made into a Dollar Standard Fund in order to keep the peso at par with the dollar. New types of coins bearing the new coat of arms were circulated.

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When the Japanese forces occupied the Philippines, they issued a great quantity of paper bills called the Japanese War Notes. These were popularly
known as the “Mickey Mouse” money.
Mickey Mouse money -These bills had no reserves, neither was it backed up by an government asset. People were forced to accept these bills and since there was no control in its issuance, became inflationary. The Philippines then was under the Involuntary Paper Standard.

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July 4, 1944 after the American forces defeated the Japanese imperial army, the Philippine Commonwealth was eatablished under President Sergio Osmena.
The president issued executive order 4049 where he declared all Japanese currency circulating in the Philippines “illegal”. He ordered the closing of all banks and declared the withdrawal of all Philippine National Bank notes from circulation.
A new treasury certificate with the word “victory” was ordered printed at the bank of each bill. These were denominated in P500, P200, P100, P50, P20, P10, P5, P2, and P1.

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OUTLINE OF THE PHILIPPINE HISTORY OF THE PHILIPPINE CURRENCY

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OUTLINE OF THE PHILIPPINE HISTORY OF THE PHILIPPINE CURRENCY

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In 1972 after the declaration of the Marshal Law the Central Bank of the Philippines adopted the Floating Rate where the peso was allowed to seek its own level in relation to foreign currencies depending on the demand and supply of such foreign currency

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As regulatory learned recently, one of the weak points in the payments chain through which illicit funds can enter is a system of traditional trust-based banking
originating in Southern Asia which is known as "HAWALA".
The word Hawala is Hindi meaning "trust" or "exchange". Often used in relation with this word Hundi which stands for "Bill of Exchange". Hawala is an unofficial alternative remittance and money exchange system enabling the transfer of funds without their actual physical move.
Hawala works as follows: Individual "brokers " or "operators", known
as Hawaladars, collect funds at one end of the payment chain and others distribute the funds at the other.
For Asian immigrants the Hawala system provides a speedy reliable and trustworthy method to remit money home. In principle, it allows cash delivered in one place to be made available elsewhere in the time it takes to make a telephone
call or send a fax. The system proves superior to any Western Banking operation: No identification needs to be presented, commissions are very low, transmissions is very fast, and the system is in operation 24 hours a day and every day of the year even its regions where no banks or other financial institutions exist.
Hawala has been a traditional method of moving money in South Asia long before Western banking became established in the protecting early merchants along the silk road against robbery. In Ancient China it was known as
"feiqian" or "flying coins".
Hawaladars in Dubai, India and Pakistan are said to be forming a "Hawala triangle" responsible for significant international money laundering activities that spread far beyond the region
Hawala is illegal in many countries. However,Islamic and Western banks all over the world, used even central banks make use of the system. For instance, in May and June 2001, the State Bank of Pakistan was said to have the own currency. Even top-ranking Western corporations to Hawaladars.
A regulation for Money Services Businesses is under way only since June 2001.
There are two aspects:
1. The macroeconomic affect it has on individual economies and state
sovereignty
2. The impact on International Financial Markets, financial regulation and monetary policy.
In principle, informal money transfer systems tend to reduce the effectiveness of traditional instruments of monetary policy in
making it more difficult to judge the need for money balances in an economy in an economy and the reactions to changes in rates and prices.