Commodity money

1742 drawing of shells of the money cowry, Cypraea moneta Bartering has several problems, most notably that it requires a 'coincidence of wants'. For example, if a wheat farmer needs what a fruit farmer produces, a direct swap is impossible as seasonal fruit would spoil before the grain harvest. A solution is to trade fruit for wheat indirectly through a third, "intermediate", commodity: the fruit is exchanged for the intermediate commodity when the fruit ripens. If this intermediate commodity doesn't perish and is reliably in demand throughout the year (e.g. copper, gold, or wine) then it can be exchanged for wheat after the harvest. The function of the intermediate commodity as a store-of-value can be standardized into a widespread commodity money, reducing the coincidence of wants problem. By overcoming the limitations of simple barter, a commodity money makes the market in all other commodities more liquid. Many cultures around the world eventually developed the use of commodity money. Ancient China, Africa, and India used cowry shells. Trade in Japan's feudal system was based on the koku a unit of rice. The shekel was an ancient unit of weight and currency. The first usage of the term came from Mesopotamia circa 3000 BC and referred to a specific weight of barley, which related other values in a metric such as silver, bronze, copper etc. A barley/shekel was originally both a unit of currency and a unit of weight.[70] Wherever trade is common, barter systems usually lead quite rapidly to several key goods being imbued with monetary properties[citation needed]. In the early British colony of New South Wales, rum emerged quite soon after settlement as the most monetary of goods. When a nation is without a currency it commonly adopts a foreign currency. In prisons where conventional money is prohibited, it is quite common for cigarettes to take on a monetary quality, and throughout history, gold has taken on this unofficial monetary function. Standardized coinage

Greek drachm of Aegina. Obverse: Land turtle / Reverse: (INA) and dolphin. The oldest turtle coin dates 700 BC

A 640 BC one-third stater coin from Lydia, shown larger.

Main article: Coin From approximately 1000 BC money in the shape of small knives and spades made of bronze were in use in the society of China, with cast bronze replicas of cowrie shells in use before this. The first

manufactured coins seems to have taken place separately in India, China, and in cities around the Aegean sea between 700 and 500 BC.[11] While these Aegean coins were stamped (heated and hammered with insignia), the Indian coins (from the Ganges river valley) were punched metal disks, and Chinese coins (first developed in the Great Plain) were cast bronze with holes in the center to be strung together. The different forms and metallurgical process implies a separate development. [71] The first ruler in the Mediterranean known to have officially set standards of weight and money was Pheidon.[72] Minting occurred in the latter parts of the 7th century amongst the cities of Grecian Asia Minor, spreading to Aegean parts of the Greek islands and the south of Italy by 500 BC. [32] The first stamped money (having the mark of some authority in the form of a picture or words) can be seen in the Bibliothque Nationale of Paris. It is an electrum stater of a turtle coin, coined at Aegina island. This coin[73] dates about 700 BC.[74] Other coins made of Electrum (a naturally occurring alloy of silver and gold) were manufactured on a larger scale about 650 BC in Lydia (on the coast of what is now Turkey).[75] Similar coinage was adopted and manufactured to their own standards in nearby cities of Ionia, including Mytilene and Phokaia (using coins of Electrum) and Aegina (using silver) during the 6th century BC. and soon became adopted in mainland Greece itself, and the Persian Empire (after it incorporated Lydia in 547 BC). The use and export of silver coinage, along with soldiers paid in coins, contributed to the Athenian Empire's 5th century BC, dominance of the region. The silver used was mined in southern Attica at Laurium and Thorikos by a huge workforce of slave labour. A major silver vein discovery at Laurium in 483 BC led to the huge expansion of the Athenian military fleet. It was the discovery of the touchstone which led the way for metal-based commodity money and coinage. Any soft metal can be tested for purity on a touchstone, allowing one to quickly calculate the total content of a particular metal in a lump. Gold is a soft metal, which is also hard to come by, dense, and storable. As a result, monetary gold spread very quickly from Asia Minor, where it first gained wide usage, to the entire world.

A Persian 309379 AD silver drachm from the Sasanian Dynasty. Using such a system still required several steps and mathematical calculation. The touchstone allows one to estimate the amount of gold in an alloy, which is then multiplied by the weight to find the amount of gold alone in a lump. To make this process easier, the concept of standard coinage was introduced. Coins were pre-weighed and pre-alloyed, so as long as the manufacturer was aware of the origin of the coin, no use of the touchstone was required. Coins were typically minted by governments in a carefully protected process, and then stamped with an emblem that guaranteed the weight and value of the metal. It was, however, extremely common for governments to assert that the value of such money lay in its emblem and thus to subsequently reduce the value of the currency by lowering the content of valuable metal.[citation needed] Gold and silver were used as the most common form of money throughout history. In many languages, such as Spanish, French, and Italian, the word for silver is still directly related to the word for money. Although gold and silver were commonly used to mint coins, other metals were used. For instance, Ancient Sparta minted coins from iron to discourage its citizens from engaging in foreign trade.[76] In the early seventeenth century Sweden lacked more precious metal and so produced "plate money", which were large slabs of copper approximately 50 cm or more in length and width, appropriately stamped with indications of their value.

Gold coinage began to be minted again in Europe in the thirteenth century. Frederick the II is credited with having re-introduced the metal to currency during the time of the Crusades. During the fourteenth century Europe had en masse converted from use of silver in currency to minting of gold.[77][78] Vienna transferred from minting silver to instead gold during 1328.[77] Metal based coins had the advantage of carrying their value within the coins themselves on the other hand, they induced manipulations: the clipping of coins in the attempt to get and recycle the precious metal. A greater problem was the simultaneous co-existence of gold, silver and copper coins in Europe. English and Spanish traders valued gold coins more than silver coins, as many of their neighbors did, with the effect that the English gold-based guinea coin began to rise against the English silver based crown in the 1670s and 1680s. Consequently, silver was ultimately pulled out of England for dubious amounts of gold coming into the country at a rate no other European nation would share. The effect was worsened with Asian traders not sharing the European appreciation of gold altogether gold left Asia and silver left Europe in quantities European observers like Isaac Newton, Master of the Royal Mint observed with unease.[79] Stability came into the system with national Banks guaranteeing to change money into gold at a promised rate; it did, however, not come easily. The Bank of England risked a national financial catastrophe in the 1730s when customers demanded their money be changed into gold in a moment of crisis. Eventually London's merchants saved the bank and the nation with financial guarantees.[citation needed] Another step in the evolution of money was the change from a coin being a unit of weight to being a unit of value. A distinction could be made between its commodity value and its specie value. The difference is these values is seigniorage.[80] Trade bills of exchange Bills of exchange became prevalent with the expansion of European trade toward the end of the Middle Ages. A flourishing Italian wholesale trade in cloth, woolen clothing, wine, tin and other commodities was heavily dependent on credit for its rapid expansion. Goods were supplied to a buyer against a bill of exchange, which constituted the buyer's promise to make payment at some specified future date. Provided that the buyer was reputable or the bill was endorsed by a credible guarantor, the seller could then present the bill to a merchant banker and redeem it in money at a discounted value before it actually became due. The main purpose of these bills nevertheless was, that traveling with cash was particularly dangerous at the time. A deposit could be made with a banker in one town, in turn a bill of exchange was handed out, that could be redeemed in another town. These bills could also be used as a form of payment by the seller to make additional purchases from his own suppliers. Thus, the bills an early form of credit became both a medium of exchange and a medium for storage of value. Like the loans made by the Egyptian grain banks, this trade credit became a significant source for the creation of new money. In England, bills of exchange became an important form of credit and money during last quarter of the 18th century and the first quarter of the 19th century before banknotes, checks and cash credit lines were widely available.[81] Tallies The acceptance of symbolic forms of money opened up vast new realms for human creativity. A symbol could be used to represent something of value that was available in physical storage somewhere else in space, such as grain in the warehouse. It could also be used to represent something of value that would be available later in time, such as a promissory note or bill of exchange, a document ordering someone to pay a certain sum of money to another on a specific date or when certain conditions have been fulfilled. In the 12th century, the English monarchy introduced an early version of the bill of exchange in the form of a notched piece of wood known as a tally stick. Tallies originally came into use at a time when

paper was rare and costly, but their use persisted until the early 19th Century, even after paper forms of money had become prevalent. The notches were used to denote various amounts of taxes payable to the crown. Initially tallies were simply used as a form of receipt to the tax payer at the time of rendering his dues. As the revenue department became more efficient, they began issuing tallies to denote a promise of the tax assessee to make future tax payments at specified times during the year. Each tally consisted of a matching pair one stick was given to the assessee at the time of assessment representing the amount of taxes to be paid later and the other held by the Treasury representing the amount of taxes be collected at a future date. The Treasury discovered that these tallies could also be used to create money. When the crown had exhausted its current resources, it could use the tally receipts representing future tax payments due to the crown as a form of payment to its own creditors, who in turn could either collect the tax revenue directly from those assessed or use the same tally to pay their own taxes to the government. The tallies could also be sold to other parties in exchange for gold or silver coin at a discount reflecting the length of time remaining until the taxes was due for payment. Thus, the tallies became an accepted medium of exchange for some types of transactions and an accepted medium for store of value. Like the girobanks before it, the Treasury soon realized that it could also issue tallies that were not backed by any specific assessment of taxes. By doing so, the Treasury created new money that was backed by public trust and confidence in the monarchy rather than by specific revenue receipts.[82] Goldsmith bankers Goldsmiths in England had been craftsmen, bullion merchants, money changers and money lenders since the 16th century. But they were not the first to act as financial intermediates; in the early 17th century, the scriveners were the first to keep deposits for the express purpose of relending them. [83] Merchants and traders had amassed huge hoards of gold and entrusted their wealth to the Royal Mint for storage. In 1640 King Charles I seized the private gold stored in the mint as a forced loan (which was to be paid back over time). Thereafter merchants preferred to store their gold with the goldsmiths of London, who possessed private vaults, and charged a fee for that service. In exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the quantity and purity of the metal they held as a bailee (i.e. in trust). These receipts could not be assigned (only the original depositor could collect the stored goods). Gradually the goldsmiths took over the function of the scriveners of relending on behalf of a depositor and also developed modern banking practices; promissory notes were issued for money deposited which by custom and/or law was a loan to the goldsmith,[84] i.e. the depositor expressly allowed the goldsmith to use the money for any purpose including advances to his customers. The goldsmith charged no fee, or even paid interest on these deposits. Since the promissory notes were payable on demand, and the advances (loans) to the goldsmith's customers were repayable over a longer time period, this was an early form of fractional reserve banking. The promissory notes developed into an assignable instrument, which could circulate as a safe and convenient form of money backed by the goldsmith's promise to pay. [85] Hence goldsmiths could advance loans in the form of gold money, or in the form of promissory notes, or in the form of checking accounts.[86] Gold deposits were relatively stable, often remaining with the goldsmith for years on end, so there was little risk of default so long as public trust in the goldsmith's integrity and financial soundness was maintained. Thus, the goldsmiths of London became the forerunners of British banking and prominent creators of new money based on credit. What are the qualities of good money material? To be able to perform the functions of money well, the money material must possess the following qualities: 1. General Acceptability: The material of which money is made should be acceptable to all without any hesitation. In this connection, gold and silver are considered as good money material bf cause they are readily acceptable to the general public. Apart from being used as money, these metals can also be put to other uses (e.g., making ornaments.) 2. Portability: Money should be easily carried or transferred from one place to another. In other words, the money material must have large value in small bulk. On this ground, various animals cannot be used as money.

3. Durability: Money material must last for a long time without losing its value. Ice and fruits cannot become good money because they lose their value with the passage of time. Ice melts and fruits perish. 4. Divisibility: Money material must be easily sub-divided to allow for the purchase of smaller units of the commodities. Cows, for example, cannot function as good money because a cow cannot be divided without losing its value; a fraction of cow is quite different entity than a whole cow. 5. Homogeneity: Money should be homogeneous. Its units should be identical; they should be of equal quality and physically indistinguishable. If money is not homogeneous, the individuals will not be certain of what they are receiving when they make transactions. 6. Cognisability: Money should be easily recognized. If it is not easily recognisable, it would be difficult for the individuals to determine whether they are dealing with money or some inferior asset. 7. Stability: The value of money should remain stable and should not change for a long period of time. If the value of money is not stable, it will not be able to function as a measure of value, as a store of value and as a standard of deferred payment. 8. Malleability: The money material should be capable of being melted and put to different forms. Gold, silver, copper, etc., have this quality. The precious metals, gold and silver by and large, possess the above mentioned qualities of good money material. It is because of this reason, that these metals have been used as money for a considerably long period of time. Now the notion of money has changed. The modern governments go through trial and error procedures before adopting a common medium of exchange. The main considerations for selecting a money material are general acceptability and cost of producing money. That commodity is chosen to serve as money which will be widely used by the people and which offers the least costly benefits of a common medium of exchange. Role of Money in Modern Economics I. Money A. Money is defined as anything people accept for goods and services. In modern economies, money is national currency. B. In the absence of money, societies use a barter system in which goods are exchanged for goods. 1. Barter economies require a Double Coincidence of Demand in that the two market participants must each be supplying what the other demands. 2. Barter also implies negotiations over the exchange (a cost modern economies often avoid), which have the economic cost of the time spent for each purchase an individual makes. C. In a more Modern System, paper currency is the means of exchange. Societys acceptance of it for goods and services gives money its value. President Nixon took the US off the gold standard in 1971 in response to a massive wave of people redeeming gold for dollars. The panic was induced by double-digit inflation. D. Functions of Money: 1. As a Medium of exchange, money exchanges are far more convenient than barter, as they do not require any double coincidence of demand. 2. As a Standard of value or monetary unit, the value of any good or service can be compared, whether the goods being compared are very similar to each other or extremely different. 3. As a Store of value money enables saving, although inflation can diminish this function. It does not deteriorate (rot) like many commodities, and the ability to earn interest increases the utility of this function. 4. As a Means of deferred payment, money facilitates the credit system (includes credit cards and payment plans for durable good purchases) and all other types of loans. E. The purposes people hold money are: 1. Transaction regular purchases 2. Precautionary emergency costs or unexpected income adjustments 3. Speculative stocks or goods purchased in the expectation their value will increase in the future. History of Philippine Money

History of Philippine Money - from gold barter rings and piloncitos, to ornaments and beads used by ancient Filipinos as medium of exchange during pre-Hispanic period, up to the present banknotes and coins. Some of the coins that circulated during the three centuries of Spanish rule, such as, the toston or four reales coins, brought by Magellan and his men to the Philippines in 1521; dos mundos or pillar dollars in silver; the fractional coin, barilla in copper and the portrait series bearing the busts of Spain's Royalty. An array of counterstamped coins with FVII (Ferdinand VII) and YII (Isabel II) symbolized the authority of Spain over the Philippines.When Casa de Moneda de Manila began minting coins in 1861, the name "Filipinas" appeared for the first time on its coins. The Mint issued series of silver and gold coins until 1868, covering the reign of Isabel II and Alfonso XII were referred to as Isabelinas and Alfonsinos. Young Alfonso XIII was the last Spanish monarch to grace the obverse of Philippine coins. The Spanish-Philippine peso coins bearing his bust, which were minted solely for use in the islands were last minted in 1877 and last circulated in 1904. The establishment of El Banco Espanol Filipino de Isabel II marked a significant chapter in the development of Philippine numismatics. It was the country's first commercial bank and in 1852, it issued the pesos fuertes, the first banknotes used in the country. The Bank is known today as the Bank of the Philippine Islands (BPI). Amid the luster of gold and silver coins in Philippine numismatics was the issuance in 1899 of the 2-centavo copper coin by he first Philippine Republic, a manifestation of the persistent quest of our forefathers for independence. However, this was shortlived, for the Philippines found itself again under another foreign power, the Americans. The coins issued during this period carried the design of the American eagle and that of the lady with the anvil, symbolic of industrialization, which the Americans introduced in the country. In 1916, the Philippine National Bank (PNB)opened to the public; thus BPI and PNB notes circulated along with silver and treasury certificates issued by the U.S authorities in Manila. The Commonwealth period showed a promise of independence, but this was stalled shortly when World War II broke out. When the Japanese imperial Army occupied the country in 1941, Japanese Invasion Money (JIM) were issued by the government. However, various resistance movements around the country defied Japanese authority by ignoring their money. The Filipinos then issued their own guerilla notes or resistance currencies, which were valid only in certain localities. The "Victory" overprint on the old treasury certificates signaled the end of the war. Independence was finally attained in 1946. The same victory notes were issued to announce the establishment of the Central Bank with the words, "Central Bank of the Philippines" overprinted on the certificates. On January 3, 1949, the Central Bank of the Philippines (CBP) was established and by 1951, it began circulating its own currency of English series notes pronted by Thomas De La Rue in England. In 1967, the Pilipino Series notes, were introduced, showing portraits if Filipino heroes and vignettes of Philippine history with a watermark portrait of the hero. By 1978, the Security Plant Complex (SPC) with facilities for printing, minting and gold refinery was established. The first banknotes printed were the Ang Bagong Lipunan series (ABL), followed in 1985 by the New Design series, with the subsequent addition of the 500 and 1000 piso notes in 1987 and 1991 respectively. The first coins issued by the Central Bank were the English series minted at the U.S mint in Philadelphia from 1958 to 1963 and the Royal Mint of London and Vereinigte Metalwerke of West Germany from 1964 to 1966. In 1967, the Pilipino series, featuring national heroes was introduced. This was followed by the ABL series in 1975, the first coins minted at the SPC, and the flora and fauna series in 1983. With the establishment of the Bangko Sentral ng Pilipinas (BSP) in 1993, a new set of coins and notes, the BSP series was issued in 1995 showing the logo of the new BSP. History of Philippine Money Philippine moneymulti-colored threads woven into the fabric of our social, political and economic life. From its early bead-like form to the paper notes and coins that we know today, our money has been a constant reminder of our journey through centuries as a people relating with one another and with other peoples of the world.

Pre-Hispanic Era Trade among the early Filipinos and with traders from the neighboring islands was conducted through barter. The inconvenience of barter later led to the use of some objects as medium of exchange. Gold, which was plentiful in many parts of the islands, invariably found its way into these objects that included the piloncitos, small bead-likeb gold bits considered by the local numismatists as the earliest coin of the ancient Filipinos, and gold barter rings. Spanish Era (1521-1897) Three hundred years of Spanish rule left many indelible imprints on Philippine numismatics. At the end of the Spanish regime, Philippine money was a multiplicity of currencies that included Mexican pesos, Alfonsino pesos and copper coins of other currencies. The cobs or macuquinas of colonial mints were the earliest coins brought in by the galleons from Mexico and other Spanish colonies. The silver dos mundos or pillar dollar is considered one of the worlds most beautiful coins. The barilla, a crude bronze or copper coin worth abo ut one centavo, was the first coin struck in the country. Coins from other Spanish colonies also reached the Philippines and were counterstamped. 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. The pesos fuertes, issued by the countrys first bank, the El Banco Espanol Filipino de Isabel II, were the first paper money circulated in the country. Revolutionary Period (1898-1899) Asserting its independence, the Philippine Republic of 1898 under General Emilio Aguinaldo issued its own coins and paper currency backed by the countrys 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 were also issued in 1899. 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 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 the United States 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 Filipinazation of the Republic coins and paper money began in the late 60s and is carried through to the present. In the 70s, 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. Philippines banknotes Philippines paper money catalog and Philippine currency history Pilipinas papel de bangko Pilipinas papel pera katalogo at Philippine currency kasaysayan

A brief monetary history: o Spanish currency, till 1898 o Philippine Peso =(1/2 USA Dollar) = 100 Centavos, 1898-1946 o Philippine Peso = 100 Centavos, 1846-1967 o Philippine Piso = (Peso) = 100 Sentimos, from 1967

Pick #

Date 1852-65 1883 1896 1877 1898 1899-9 1899

Spanish Colony, till 1898 10, 25, 50 pesos 10, 25, 50 pesos 5, 10, 25, 50 pesos 1, 4, 25 pesos 5 pesos 1, 5 pesos 1 peso USA Colony, 1898-1946 - -Banco Espanol Filipino 1-6 1908 5, 10, 20, 50, 100, 200 pesos - -Bank of the Philippine Islands The Museo tells the story of money from the earliest trading times in the Philippines, when primitive money was used and barter was practiced, to the creation of modern coins and banknotes. The galleries show the currencies used during the different periods of the country 's history A1-3 A4-6 A7-10 A11-15 A25 A26-7 A28 Archaeological evidence indicates that small seafaring communities existed throughout the Philippine Archipelago for at least 2000 years, prior to the arrival of the Spaniards. The chief means of trading was barter. Records show that Chinese merchants came to the Philippines to trade porcelain, silk and metalware in exchange for gold, pearls, beeswax and medicinal plants, which the Philippines is naturally rich in. Excavations also unearthed gold ingots, known as piloncitos, the first recognized form of coinage in the country. Barter rings in different sizes, gold ornaments and beads were the other objects used as medium of exchange during the period. The Galleon Trade, which started during the colonization of the Philippines in 1565 and lasted for 250 years was responsible for transforming Manila into a trade center for oriental goods. These were brought across the Pacific, in exchange for odd-shaped silver coins called cobs or macuquinas. Other coins that followed were the dos mundos or pillar dollars in silver, the counterstamped coins and the portrait series ,also in silver.

In the 18th century, the Royalty of Spain authorized the production of copper coins by the Ayuntamiento or Municipality of Manila in response to the acute shortage of fractional coins. These were called barrillas which first appeared in 1728.In 1852, the first banknotes called pesos fuertes were issued, and in 1861,the Casa de Moneda de Manila minted the first gold coins with the word "Filipinas " inscribed, which were called Isabelinas and Alfonsinos. REVOLUTIONARY PERIOD On August 23,1896,the Cry of Balintawak, headed by Andres Bonifacio signaled the start of the Philippine Revolution. After General Emilio Aguinaldo's proclamation as President of the First Philippine Republic, two types of 2-centavo copper coins were struck in the army arsenal of Malolos. Because their mintage was so few, they are considered extremely rare collection. Paper notes were also issued, but the circulation was limited because the government was short-lived.

THE AMERICAN REGIME When the Americans took over the Philippines in 1901,the US Congress passed the Philippine Coinage Act, which authorized the mintage of silver coins from 1903 to 1912. Subsequently, Silver Certificates were issued until 1918. These were replaced with Treasury Certificates from 1918 to 1935. The American Government deemed it more economical and convenient to mint silver coins in the Philippines, hence, the re-opening of the Manila Mint in 1920, which produced coins until the Commonwealth Period. This also became the first seat of the Central Bank in 1949. WORLD WAR 2 During the Japanese Occupation from 1941 to 1944,two kinds of notes circulated - the Japanese Invasion Money issued by the Japanese Government, and the Guerrilla Notes or Resistance Currencies issued by Filipino guerrillas. REPUBLIC PERIOD Republic Act No.265 created the Central Bank of the Philippines (CBP) on January 3, 1949, which was vested the power of administering the banking & credit system of the country. Initially, the CBP issued the Victory Notes with the overprint "Central Bank of the Philippines " in 1949. The first official banknotes issued by the Central Bank were the English series in 1951,followed by the Pilipino series in 1967, the Ang Bagong Lipunan series in 1973 and the New Design series in 1985. Central Bank coins of the English series were also issued in 1959, followed by the Pilipino series in 1967, and the Ang Bagong Lipunan series in 1975. The Flora and Fauna series were introduced in 1983, and subsequently, the improved version in 1992, until the demonetization of all the series in 1998.

The exhibits commemorating the Philippine Centennial aim to instill in the hearts and minds of Filipinos the spirit of nationalism and the ideals of liberty for which our heroes unselfishly dedicated themselves. Showcased are special coins and banknotes featuring our national heroes in their struggle for freedom. The Rizal Tradition features our national hero, Dr.Jose Rizal in different issues of Philippine currency. Another significant item is the 100,000-piso centennial note, measuring 8 1/2 " x 14 ",accredited by the Guinness Book of Records as the world 's biggest legal tender note.

To commemorate important historical events, medals and special coins in gold and silver, with limited mintage are issued by the Bank. Some of these pieces commemorate important state visits to the country by heads of states, side from other significant international events held in the Philippines.

A colorful array of international currencies, featuring the latest issues of banknotes and coins from countries worldwide, are also on display. These include foreign currencies with historical designs and thematic exhibits, like Ancient Greek and Roman Coins, Bible Coins, Famous People on Coins, Coin Zoo, Millennium Coins and Banknotes and the Euro money . Money supply In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time.[1] There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits (depositors' easily accessed assets on the books of financial institutions).[2][3] Money supply data are recorded and published, usually by the government or the central bank of the country. Public and private sector analysts have long monitored changes in money supply because of its effects on the price level, inflation, the exchange rate and the business cycle.[4] That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct relation between money-supply growth and long-term price inflation, at least for rapid increases in the amount of money in the economy. That is, a country such as Zimbabwe which saw rapid increases in its money supply also saw rapid increases in prices (hyperinflation). This is one reason for the reliance on monetary policy as a means of controlling inflation.[5][6] The nature of this causal chain is the subject of contention. Some heterodox economists argue that the money supply is endogenous (determined by the workings of the economy, not by the central bank) and that the sources of inflation must be found in the distributional structure of the economy.[7] In addition, those economists seeing the central bank's control over the money supply as feeble say that there are two weak links between the growth of the money supply and the inflation rate. First, in the aftermath of a recession, when many resources are underutilized, an increase in the money supply can cause a sustained increase in real production instead of inflation. Second, if the velocity of money, i.e., the ratio between nominal GDP and money supply, changes, an increase in the money supply could have either no effect, an exaggerated effect, or an unpredictable effect on the growth of nominal GDP.

Philippines Money Supply M0 Money Supply M0 in Philippines decreased to 524066 PHP Million in June of 2013 from 541257.68 PHP Million in May of 2013. Money Supply M0 in Philippines is reported by the Bangko Sentral Ng Pilipinas. Philippines Money Supply M0 averaged 117607.86 PHP Million from 1970 until 2013, reaching an all time high of 557490.33 PHP Million in December of 2012 and a record low of 1918 PHP Million in January of 1970. Philippines Money Supply M0 is the most liquid measure of the money supply including coins and notes in circulation and other assets that are easily convertible into cash. Money Supply M0 and M1, are also known as narrow money. This page contains - Philippines Money Supply M0 actual values, historical data, forecast, chart, statistics, economic calendar and news. 2013-08-30

Money supply grows faster in Feb Posted at 04/08/2010 5:50 PM | Updated as of 04/08/2010 5:52 PM MANILA, Philippines - Money supply or M3 grew 9.9% to P3.84 billion in February, the Bangko Sentral ng Pilipinas (BSP) reported Thursday. The growth rate was faster than the 8.1% registered in January. Seasonally adjusted, M3 was up 0.8% in February, after a 0.2% decline in the previous month. The central bank said in a statement this was boosted by growth in both net foreign and net domestic assets. M3, or domestic liquidity, is the broader measure of money circulating in the economy. It is one of the factors the central bank looks at when setting monetary policy because of its impact on inflation. The BSP earlier said monetary policy setting remained appropriate despite March inflation of 4.4%, higher than February's 4.2% but still broadly in line with market expectations and the central bank's forecast of 3.9-4.8%. It also said it was likely to keep the key interest rate at a record low of 4% in the first half of 2010 given the favorable inflation outlook. BSP deputy governor Diwa Guinigundo said Wednesday the outlook for inflation was "very, very benign" but the monetary authorities were conscious of risks from any build-up of excess liquidity. With a report from Reuters Philippine Money IJsselstein, Friday, 28 January 2011 The currency in the Philippines is the Philippine peso (or officially piso), divided into 100 centavos (officially centimo). Its international abbreviation is PHP. Currently (January 2011), the U.S. dollar is worth about 44 pesos, and the euro about 60 pesos (daily update rates are on our Exchange Rate page). Current are coins of 1, 5, 10, and 25 centavos and 1 and 5 pesos, and bank notes of 5, 10, 20, 50, 100, 200, 500 and 1000 pesos. Five and ten peso note is no longer printed, but still legal tender. The coins can be seen on a separate page. In 1997, all old Philippine currency was replaced by new banknotes and coins. Notes from before 1997 cannot be used anymore. If you are interested in what those old notes looked like, just have a look at our old Philippine money page. In December 2010, a new series of banknotes was announced. The old notes will remain valid for at least three more years. New coins have been announced for 2012. 5 Pesos The 5 peso note depicts Emilio Aguinaldo, a Philippine resistance hero who first fought the Spanish, and later the American occupiers of the country. The first president of the Philippines. On the reverse you can see the proclamation of Philippine independence, from the balcony of Aguinaldo's house. You won't find this note much in circulation today, as it has been replaced by a 5 peso coin. 10 Pesos The 10 peso note depicts Apolinario Mabini and Andres Bonifacio. You can also get across an older version with only Mabini. On the reverse is the church of Barasoain. 20 Pesos The 20 peso note depicts Manuel L. Quezon. On the reverse you can see the Presidential Palace, the Malakaang.

50 Pesos The 50 peso note depicts Sergio Osmea. On the reverse you can see the Executive House. Be careful not to confuse it with the 20 peso note, as the color is nearly the same. 100 Pesos The 100 peso note depicts Manuel A. Roxas. On the reverse you can see the buildings of the Philippine National Bank. 200 Pesos Introduced in 2002, the 200 peso note commemorates the the June 12 Independence Day, and the EDSA II uprising. It depicts president Diosdado Macapagal, the father of the current president, Gloria Macapagal Arroyo, who is also depicted on the back of the note. 5 Pesos The 5 peso note depicts Emilio Aguinaldo, a Philippine resistance hero who first fought the Spanish, and later the American occupiers of the country. The first president of the Philippines. On the reverse you can see the proclamation of Philippine independence, from the balcony of Aguinaldo's house. You won't find this note much in circulation today, as it has been replaced by a 5 peso coin.

10 Pesos The 10 peso note depicts Apolinario Mabini and Andres Bonifacio. You can also get across an older version with only Mabini. On the reverse is the church of Barasoain.

20 Pesos The 20 peso note depicts Manuel L. Quezon. On the reverse you can see the Presidential Palace, the Malakaang. 50 Pesos The 50 peso note depicts Sergio Osmea. On the reverse you can see the Executive House. Be careful not to confuse it with the 20 peso note, as the color is nearly the same. 100 Pesos The 100 peso note depicts Manuel A. Roxas. On the reverse you can see the buildings of the Philippine National Bank. 200 Pesos Introduced in 2002, the 200 peso note commemorates the the June 12 Independence Day, and the EDSA II uprising. It depicts president Diosdado Macapagal, the father of the current president, Gloria Macapagal Arroyo, who is also depicted on the back of the note.

500 Pesos The 500 peso note depicts Beningno S. Aquino Jr. 1000 Pesos The 1000 peso note depicts Jose Abad Santos, Vincent Lim, and Josefa Llanes Escoda. On the reverse you can see the rice terasses in Banawe, and some tribal artifacts. You won't come across this note very often, and you shouldn't expect your taxi driver to have change from it.

500 Pesos The 500 peso note depicts Beningno S. Aquino Jr.

Philippines money supply increases Growth in the Philippines money supply moderated in October amid a slowdown in bank lending, the Bangko Sentral ng Pilipinas (BSP) said. In a statement, the BSP said domestic liquidity or M3 reached P4 trillion in October, mirroring a slower growth of 7.7 percent from 10.5 percent in September. On a monthly, seasonally adjusted basis, M3 contracted by about 0.9 percent following an expansion of 2.1 percent in September. BSP Governor Amando Tetangco Jr. said the growth in money supply was attributed to the increase in net foreign assets, albeit at a slower pace of 10.2 percent from 12.8 in September. The BSP's net foreign assets position went up 20.3 percent in October from 19.2 percent in September owing to foreign exchange inflows in the form of remittances, portfolio investments and export receipts. The net foreign assets of banks however went down by 42.3 percent, faster than the 22.6 percent contraction in September owing to the upsurge in their foreign liabilities coupled with a decrease in foreign assets. The BSP said the expansion in net domestic assets decelerated to 1.8 percent in October relative to the 5.1 percent in September. Credits extended to the private sector went up 10.1 percent, in line with the continued uptrend in bank lending amid the pickup in domestic demand. Credits to the public sector slowed by 6.7 percent on the back of the 7.9 percent moderation in loans extended to local governments and other public entities. The BSP said outstanding loans of commercial banks, net of banks' reverse repurchase placements (RRPs) with the BSP, grew by 8.4 percent in October, down from 9.8 percent in September. Inclusive of RRPs, outstanding loans of commercial banks grew by 9.1 percent, also lower than the increase of 10.2 percent in September. Year 2009, the Central Bank of the Philippines announced that it launched a massive redesign for current banknotes 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. The CBP started releasing the initial batch of new banknotes in 2010 of December while new coins will be introduced beginning 2012. Current banknotes will remain legal tender for at least three years. On December 16, 2010, the new series & new design of Philippine banknotes were released. All 6 denominations of Philippine Banknotes 20, 50, 100, 200, 500 & 1,000 pesos have new designs and new security features. P20 note Obverse : President Manuel L. Quezon, Filipino as the National Language, Malacaang Palace, Seal of the President and the new BSP Seal. On its obverse side President Manuel L. Quezon is the featured personality. He is popularly known as the Father of the National Language, the second president of the Philippines and the first to be elected to seat as head of our country throug h a national election. He worked tirelessly to gain recognition for the Philippines as an independent nation. During his term, a national language for the Philippines was adopted and our women are given the right to vote. President Quezon is the first Filipino President to hold office in theMalacaang Palace by the Pasig River. Reverse : Design highlights map of the Philippines featuringBanaue Rice Terraces and the palm civet popularly known as coffee alamid from the mountains of the Cordilleras, which are famous for producing the best and most expensiv e coffee. P50 note Obverse: Page President Sergio Osmea, First National Assembly, Leyte Landing of Gen. Douglas MacArthur and staff land at Palo Beach, Leyte, October 20, 1944 where he announce to the populace the beginning of their liberation: People of the Philippines, I have returned! By the grace of Almighty God, our forces stand again on Philippine soil.. Reverse : Look features the Taal Lake the deepest freshwater lake in the country which host Taal Volcano, the worlds smallest volcano and the place where the Giant Trevally thrives, the fish is locally known as Maliputo, it is a delicious milky fish that can be only found on the lake. P100 note Obverse : side features President Manuel A. Roxas, Central Bank of the Philippines 1949 and the inaguration of the Third Republic July 4, 1946. Reverse : Back side highlights the Majestic Mayon Volcano of Legazpi, Albay the countrys most active volcano which has near perfect cone. Also featured here is the Butanding or whale shark its scientific name was Rhincodon typus, the worlds largest living fish which is the main attraction of Water and Fish enthusiast in Donsol, Sorsogon. P200 note Obverse : Featured in the obverse side of this two hundred peso bill isPresident Diosdado P. Macapagal , with the Idependence house and Barasoain Church. Reverse : The back side design highlights Chocolate Hills of Bohol and the Philippine tarsier described by wikipedia as the one of the worlds smallest primates which can be found in Bohol and in Samar, Leyte and Mindanao. P500 note Obverse : The Icons of Democracy President Corazon Cory Aquino and Senator Benigno Ninoy Aquino Jr. Including EDSA People Power I February 1986 and Benigno S. Aquino Jr. Monument. side of 500 peso bill design highlights eight-kilometer Puerto Princesa Subterranean River National Park in Palawan, Philippine cockatoo and the blue-naped parrot, which thrives in the forests of Palawan and Mindoro.Reverse : This side of 500 peso bill design highlights eight-kilometer Puerto Princesa Subterranean River National Park in Palawan, Philippine cockatoo and the blue-naped parrot, which thrives in the forests of Palawan and Mindoro province. P1,000 note Obverse : The 1000 peso note features war heroes Josefa Llanes Escoda, Jose Abad Santos and Vicente P. Lim also a picture of the Centenial of Philippine Independence and photo of Medal of Honor.

Reverse : This side features Tubbataha Reef Marine Park one of the declared UNESCO World Heritage Site and a picture of South Sea Pearl, which is came from oysters, this is a pearl produced by the Pinctada maxima mollusk that thrive in the South Seas of Sulu Sea. New Series of Philippine Paper Money 1985-2013 1985 New Design and 1993 BSP Series In 1983, the Committee was deciding the issuing of new banknotes to replace the Ang Bagong Lipunan Series by issuing seven new banknotes consisting of 5, 10, 20, 50, 100, 500, and 1000-peso banknotes. On June 12, 1985, the Central Bank issued the New Design Series starting with a new 5-peso banknote with the face of Emilio Aguinaldo. The following months, a new 10-peso banknote with the face of Apolinario Mabini. In early 1986, a new 20-peso banknote appeared. After the 1986 People Power Revolution and the new1987 Constitution was promulgated, the Central Bank issued a new 50, 100- and for the second time a new 500-peso banknote with the face of Benigno Aquino, Jr.. In 1991, the Central Bank issued for the first time a new 1000-peso banknote, containing the pictures of Jose Abad Santos, Josefa Llanes Escoda and Vicente Lim. After the passage of the New Central Bank Act of 1993, the New Design Series, which was initiated in 1985, was slightly changed because of new seal of the Bangko Sentral ng Pilipinas. In 1998, the 100,000-peso Centennial banknote, measuring 8.5"x14", accredited by the Guinness Book of World Records as the world's largest legal tender note. It was issued in very limited quantity during the celebration of the Centennial of Philippine Independence. In 2001, the Bangko Sentral issued upgraded 1000, 500, and 100-peso banknotes with new hi-tech security features to combat counterfeiting. 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. In 2002, the Bangko Sentral issued a new 200-peso banknote with the security features found on the upgraded 1000, 500, and 100-peso banknotes and has the face of former President Diosdado Macapagal. His daughter, Gloria Macapagal-Arroyo, is at the back of the 200-peso banknote which showed her being sworn into office at the EDSA Shrine. She is the first president whose image has been included in a banknote while in office since emergency currency was issued by various provincial currency boards during World War II. The series was renamed the BSP Series in 1993 when the Bangko Sentral ng Pilipinas was reestablished as the central monetary authority. These banknotes remains legal tender until 2013. The New Design Series has less security features. (only the visible fibers, value panel, security thread and watermark.) The BSP Series has added more security features such as another glossy security thread, iridescent strip, fluorescent printing, optically variable ink, and microprints. ANG BAGONG LIPUNAN Series Philippine Notes (1973-1985 ABL Series) SET of ABL series available for SALE at this site : click ABL The Ang Bagong Lipunan series (The New Society Series) is the name used to refer to Philippine banknotes issued by the Central Bank of the Philippines from 1973 to 1985. It was succeeded by the New Design series of banknotes. The lowest denomination of the series is 2-pesos and the highest is 100-pesos. After the declaration of Proclamation 1081 by President Ferdinand Marcos on September 23, 1972, the Central Bank was to demonetize the existing banknotes in 1974, pursuant to Presidential Decree 378. All the unissued Pilipino Series banknotes (except one peso banknote) were sent back to the De La Rue plant in London for overprinting the watermark area with the

words "ANG BAGONG LIPUNAN" and oval geometric safety design. The one peso bill was replaced with the two peso bill, which features the same elements of the demonetized Pilipino series one peso bill. On September 7, 1978, the Security Printing Plant in Quezon City was inaugurated to produce the banknotes. The banknotes were still legal tender even after the introduction of the New Design Series banknotes, however it is seldom used after the EDSA Revolution. The banknotes were eventually demonetized on February 2, 1993 (but can still be exchange with legal tender currency to the Central Bank until February 2, 1996), after clamors that the banknotes can be used to buy votes for the coming presidential elections. Pilipino Series notes The Pilipino series banknotes is the name used to refer to Philippine banknotes issued by the Central Bank of the Philippines from 1969 to 1973, during the term of President Ferdinand Marcos. It was succeeded by the Ang Bagong Lipunan Series of banknotes, to which it shared a similar design. The lowest denomination of the series is 1-piso and the highest is 100piso. This series represented a radical change from the English series. The bills underwent Filipinization and a design change. After the declaration of Proclamation 1081 on September 23, 1972, the Central Bank demonetized the existing banknotes (both the English and Pilipino series) on February 28, 1974, pursuant to Presidential Decree No. 378[1]. All the unissued banknotes were sent back to the De La Rue plant in London for overprinting the watermark area with the words "ANG BAGONG LIPUNAN" and an oval geometric safety design.

In World War II in the Philippines, the occupying Japanese government issued fiat currency in several denominations; this is known as the Japanese government-issued Philippine fiat peso. The Japanese-sponsored Second Philippine Republic under Jose P. Laurel outlawed possession of guerrilla currency, and declared a monopoly on the issuance of money, so that anyone found to possess guerrilla notes could be arrested. Some Filipinos called the fiat peso "Mickey Mouse money". Many survivors of the war tell stories of going to the market laden with suitcases or "Bayong" (native bags made of woven coconut or buri leaf strips) overflowing with the Japanese-issued bills. According to one witness, 75 "Mickey Mouse" pesos, or about 35 U.S. dollars at that time, could buy one chicken egg. In 1944, a box of matches cost more than 100 Mickey Mouse pesos. Those bills were often used by American psychological warfare personnel as propaganda leaflets. The Japanese occupation banknotes were overprinted with the words "The Co-prosperity Sphere: What is it worth?", in an attempt to discredit the Greater East Asia Co-Prosperity Sphere, and dropped from Allied aircraft over the occupied territories. The JIM notes are usually worth ten to twenty five cents each, unless they are in perfect condition, then fifty cents to a dollar. If they are the replacement type, they could be worth a couple of dollars to even five dollars. In August 1940, Japanese Prime Minister Matsuoka Ysuke announced the idea of the Greater East Asia Co-Prosperity Sphere, a group of Asian nations led by the Japanese and free of Western powers; "Asia for Asians". As Japan occupied various Asian countries, they set up governments with local leaders who proclaimed independence from the Western powers. One of the main ways to accomplish this was to have a unified currency, one that was not tied to western currencies. Japanese Invasion Money was officially known as Southern Development Bank Notes. It is a currency that was issued by the Japanese Military Authority, as a replacement for local currency. In February 1942 Japan passed laws which established the Wartime Finance Bank and the Southern Development Bank. Both of these banks issued bonds to raise funding for the war. The former loaned money primarily to military industries. The latter is the one we are interested in here. They provided financial services in areas occupied by the Japanese military, and these Southern Development Bank notes were the Japanese Invasion

Money we are now looking at. Once the Japanese government made these notes, their military confiscated all hardcurrency in the Philippines, both from the government and the people. They replaced it with Southern Development Bank notes. Now for an explanation of the method the Japanese used for adding serial numbers to most of these issues. They first used what are known as "Block Letters", printed in red on the face of the note. This system has the first letter denoting the location issued: therefore, the Philippines had block letters which started with P. So for example, the Philippine notes would have on the front depending on when printed, a set of letters in red: PA, PB, PC all the way through PZ. These are known as "Whole Block Letters". When PZ was reached, one of two things happened- for the one through fifty centavos notes, it was decided to use what is called "Fractional Block Letters". These were basically a fraction, but instead of numbers, it was letters, appearing like this: P/AA and this system worked in the same principal as before. The letter on top denoted the location, and the bottom two were the series, starting with AA and progressing as needed. When AZ was reached, it was advanced to BA and went through BZ, and on some issues, CA and so on to EZ. For the Pesos notes, serial numbering was introduced (as well as a design change). Some denominations have letters skipped over. The reason for this is not known, but it is believed that so many of these notes were printed, they may not have been discovered yet. Even today, bundles of Japanese Invasion Money are being discovered under old huts, in tunnels and stuffed into caves. The second issue peso notes (1, 5, 10 and 100 Pesos) had a block number and a serial number usually beginning with a zero. Some serial numbered notes begin with the number one. These notes were issued as replacements for damaged notes, much like American 'star' notes (although a lot harder to find!). The block number range of the notes with serial numbers is 1 - 79. On the one peso notes only, blocks 80 - 87 had no serial numbers (they were produced in haste after the Americans landed on Luzon- there were 5 print runs). These notes with just plate block numbers are much harder to find than the ones with serial numbers. After the liberation of the Philippines, the Red Cross came in to help out. They obtained many of these JIM notes, and punched 2 holes in each one. Then these hole-punched notes were distributed to the soldiers as souvenirs. These notes have no extra monetary value, but do come with a bit more of a story and can usually be found in high grades. Regarding the legality of the JIM notes after the war, President Truman did not support the stance of the Philippine government. Commonwealth House Bill No. 647 (Senate Bill No. 51), titled "An Act Governing the Payment of Monetary Obligations Incurred or Contracted Prior to and During the Japanese Invasion of the Philippines and for Other Purposes," was passed by both houses of the Philippine Commonwealth Congress on the last day of its last session, December 20, 1945. It was signed into law by President Osmea on January 18, 1946. The law provided for the validation of payments made in Japanese "mickey mouse" money during the period of enemy occupation.

What Type of Paper is Money Printed On? The paper found in dollar bills isn't like the paper in your printer. In one sense, it may not be paper at all. Where most paper is made with wood pulp, the paper found in printed money uses none. Instead, currency paper is mostly made up of cotton and linen, materials more commonly used for making cloth.

Philippine Paper Money? The Philippine paper money is similar to other countries. Most paper money is made from cotton fibers. In other cases, it is a blend of cotton and some linen.

Q&A Related to "Philippine Paper Money?" How is Philippine paper money made? it is made out of cotton fibers What is Paper Money Made of? Paper money is made of a mixture of 25 percent linen and 75 percent cotton, so its not really paper at all, and can survive in the washing machine. Red and blue fibers of different When was Paper Money Invented? Paper money can be traced back to around 650 AD. The Chinese Emperor issued "value tokens" in the form of paper. Europeans started using paper as currency in the 17th century

History of Philippine Money Philippine moneymulti-colored threads woven into the fabric of our social, political and economic life. From its early bead-like form to the paper notes and coins that we know today, our money has been a constant reminder of our journey through centuries as a people relating with one another and with other peoples of the world. Pre-Hispanic Era Trade among the early Filipinos and with traders from the neighboring islands was conducted through barter. The inconvenience of barter later led to the use of some objects as medium of exchange. Gold, which was plentiful in many parts of the islands, invariably found its way into these objects that included the piloncitos, small bead-likeb gold bits considered by the local numismatists as the earliest coin of the ancient Filipinos, and gold barter rings. Spanish Era (1521-1897) Three hundred years of Spanish rule left many indelible imprints on Philippine numismatics. At the end of the Spanish regime, Philippine money was a multiplicity of currencies that included Mexican pesos, Alfonsino pesos and copper coins of other currencies. The cobs or macuquinas of colonial mints were the earliest coins brought in by the galleons from Mexico and other Spanish colonies. The silver dos mundos or pillar dollar is considered one of the worlds most beautiful coins. The barilla, a crude bronze or copper coin worth about one centavo, was the first coin struck in the country. Coins from other Spanish colonies also reached the Philippines and were counterstamped. 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. The pesos fuertes, issued by the countrys first bank, the El Banco Espanol Filipino de Isabel II, were the first paper money cir culated in the country. Revolutionary Period (1898-1899) Asserting its independence, the Philippine Republic of 1898 under General Emilio Aguinaldo issued its own coins and paper currency backed by the countrys 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 were also issued in 1899. 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 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 the United States 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 Filipinazation of the Republic coins and paper money began in the late 60s and is carried through to the present. In the 70s, 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. THE STORY OF MONEY -from the pre-Hispanic Era, Spanish Era, Revolutionary Period, the American Regime, the Japanese Occupation and the Philippine Republic Period. The Museo tells the story of money from the earliest trading times in the Philippines, when primitive money was used and barter was practiced, to the creation of modern coins and banknotes. The galleries show the currencies used during the different periods of the country 's history Pre hispanic ERA Archaeological evidence indicates that small seafaring communities existed throughout the Philippine Archipelago for at least 2000 years, prior to the arrival of the Spaniards. The chief means of trading was barter. Records show that Chinese merchants came to the Philippines to trade porcelain, silk and metalware in exchange for gold, pearls, beeswax and medicinal plants, which the Philippines is naturally rich in. Excavations also unearthed gold ingots, known as piloncitos, the first recognized form of coinage in the country. Barter rings in different sizes, gold ornaments and beads were the other objects used as medium of exchange during the period. SPANISH ERA The Galleon Trade, which started during the colonization of the Philippines in 1565 and lasted for 250 years was responsible for transforming Manila into a trade center for oriental goods. These were brought across the Pacific, in exchange for odd-shaped

silver coins called cobs or macuquinas. Other coins that followed were the dos mundos or pillar dollars in silver, the counterstamped coins and the portrait series ,also in silver. In the 18th century, the Royalty of Spain authorized the production of copper coins by the Ayuntamiento or Municipality of Manila in response to the acute shortage of fractional coins. These were called barrillas which first appeared in 1728.In 1852, the first banknotes called pesos fuertes were issued, and in 1861,the Casa de Moneda de Manila minted the first gold coins with the word "Filipinas " inscribed, which were called Isabelinas and Alfonsinos. REVOLUTIONARY PERIOD On August 23,1896,the Cry of Balintawak, headed by Andres Bonifacio signaled the start of the Philippine Revolution. After General Emilio Aguinaldo's proclamation as President of the First Philippine Republic, two types of 2-centavo copper coins were struck in the army arsenal of Malolos. Because their mintage was so few, they are considered extremely rare collection. Paper notes were also issued, but the circulation was limited because the government was short-lived. AMERICAN REGIME When the Americans took over the Philippines in 1901,the US Congress passed the Philippine Coinage Act, which authorized the mintage of silver coins from 1903 to 1912. Subsequently, Silver Certificates were issued until 1918. These were replaced with Treasury Certificates from 1918 to 1935. The American Government deemed it more economical and convenient to mint silver coins in the Philippines, hence, the re-opening of the Manila Mint in 1920, which produced coins until the Commonwealth Period. This also became the first seat of the Central Bank in 1949. WORLD WAR II During the Japanese Occupation from 1941 to 1944,two kinds of notes circulated - the Japanese Invasion Money issued by the Japanese Government, and the Guerrilla Notes or Resistance Currencies issued by Filipino guerrillas. REPUBLIC PERIOD Republic Act No.265 created the Central Bank of the Philippines (CBP) on January 3, 1949, which was vested the power of administering the banking & credit system of the country. Initially, the CBP issued the Victory Notes with the overprint "Central Bank of the Philippines " in 1949. The first official banknotes issued by the Central Bank were the English series in 1951,followed by the Pilipino series in 1967, the Ang Bagong Lipunan series in 1973 and the New Design series in 1985. Central Bank coins of the English series were also issued in 1959, followed by the Pilipino series in 1967, and the Ang Bagong Lipunan series in 1975. The Flora and Fauna series were introduced in 1983, and subsequently, the improved version in 1992, until the demonetization of all the series in 1998. SPECIAL EXHIBITS CENTINNIAL EXHIBIT The exhibits commemorating the Philippine Centennial aim to instill in the hearts and minds of Filipinos the spirit of nationalism and the ideals of liberty for which our heroes unselfishly dedicated themselves. Showcased are special coins and banknotes featuring our national heroes in their struggle for freedom. The Rizal Tradition features our national hero, Dr.Jose Rizal in different issues of Philippine currency. Another significant item is the 100,000-piso centennial note, measuring 8 1/2 " x 14 ",accredited by the Guinness Book of Records as the world 's biggest legal tender note. COMMEMORATIVE COINS AND MEDALS To commemorate important historical events, medals and special coins in gold and silver, with limited mintage are issued by the Bank. Some of these pieces commemorate important state visits to the country by heads of states, side from other significant international events held in the Philippines.

FOREIGN CURRENCIES

A colorful array of international currencies, featuring the latest issues of banknotes and coins from countries worldwide, are also on display. These include foreign currencies with historical designs and thematic exhibits, like Ancient Greek and Roman Coins, Bible Coins, Famous People on Coins, Coin Zoo, Millennium Coins and Banknotes and the Euro money .

History of Philippine Money Ever wondered how our money came to be? I searched the net for information on the history of our moneys (banknotes and coins). Heres some interesting facts. Pre-Hispanic Era Long before the arrival of the Spaniards, the Philippines has been home to many seafaring communities. These communities traded (barter) with other communities and countries such as Malaysia, Vietnam, China and even as far as India. Chinese Ming Dynasty porcelains and metalware have been unearthed in several locations in the Philippines. Early Pinoys bartered goods like pearls, gold pieces and medicinal plants for foreign goods like metalware, porcelain and silk. The earliest form of coinage (money) in our country were gold beads, referred to as piloncitos. Barter rings and other gold pieces were also used in commerce. The term piloncito comes from the word pilon, a local sugar container that resembles the coin. They are engraved with the Brahmanic character ma which looks like an upside down R. We can only guess that this character refers to the pre-colonial kingdom of Ma-yi which is roughly the Philippines we know today Spanish Era When the archipelago was colonized by Spain, Manila became the trade center for oriental goods. The Galleon Trade was established to monopolized the countrys goods. This eventually introduced alternative forms of currencies to the Philippines. Silver, in the forms of Macuquinas (cobs), dos mundos (pillar dollars), counterstamped and portrait series coins, replaced gold beads and the primary forms of money. A shortage of coins caused the Royalty of Spain to authorize the production of copper coins in Manila. The first copper coins, called barillas, were issued in 1728. The countries first banknotes (paper money), called Peso Fuertes, were circulated in 1852. And in 1861, Casa de Moneda de Manila minted the countries first gold coins known as Isabelinas and Alfonsinos. Both of these coins are inscribed with Filipinas. Revolutionary Period Two types of 2-centavo coins were produced, in the army arsenal in Malolos, Bulacan, after Emilio Aguinaldo was proclaimed the President of the First Philippine Republic. Paper money was also issued. The American Regime America defeated Spain and took over the rule in 1901. The Philippine Coinage Act was passed by the US Congress which authorized the production of silver coins from 1903 to 1912 These coins were minted in the Philadelphia, San Francisco and Denver mints. The inscriptions and figures of these coins were designed by a young Filipino artist named Melecio Figueroa.

Silver certificates were issued until 1918 which was later replaced with Treasury Certificates from 1918 to 1935. Due to the high cost of minting and transportation, the American government decided to reopen the Manila Mint in 1920. The newly-opened mint produced coins until Manuel L. Quezons Commonwealth Government. During this same era, special coins were minted for circulation within the Culion Leper Colony in Culion, Palawan. World War II During the Japanese occupation, two kinds of paper money were circulated the Japanese Invasion Money by the Japanese Empire and the Guerilla Notes issued by Filipino guerillas. There are many types of Guerilla notes which circulated in their respective provinces. Examples are notes from Leyte, Cebu, Ilocos and Misamis Oriental. Republic Period In 1949, the Central Bank of the Philippines was created through the Republic Act No. 265. In 1951 the English Series, Central Banks first official banknotes, was circulated. The Pilipino Series followed in 1967, then the Ang Bagong Lipunan Series in 1973, and the New Design Series in 1985. For the coins, the English Series coins were introduced in 1959, followed by the Pilipino Series in 1967, the Ang Bagong Lipunan Series in 1975. The Flora and Fauna Series was introduced in 1983. An improved version was circulated in 1992. All of these series were demonitized in 1998. As a matter of fact, the Worlds Largest Legal Tender is a Philippine bank note issued in 1998 to commemorate the countrys Independence Day Centennial. It has a face value of PHP 100, 000. New Generation Money Dont be surprised if you see new banknotes in December 2010! To make it harder for counterfeiters, BSP will issue paper money and coins with new designs. Our new banknotes will pay tribute to Filipinos who played significant roles in various moments of our nations history. World heritage site and iconic natural wonders of the Philippines are also proudly highlighted. The new coins will feature our national symbols. PHILIPPINE COINS In the Philippines, coins of 1, 5, 10, and 25 centavos (officially called sentimo), and 1, 5 and 10 pesos (officially piso) are in use. All older coins have been demonetized, and cannot be used anymore. You will probably never see the one centavo coin for real, as they are very difficult to find (slightly over 18 million have been made, that is less than one for every four Filipinos), and also pretty useless, due to their low value, which is probably a world record for a coin still being minted. The five-centavo coin is exactly the same size as the one-centavo coin, but actually has less metal, due to the hole. This coin is also not very useful, and sometimes seen as decoration on key-rings, or used as emergency washers. The the smallest coin you'll actually find in common use is the twenty-five centavo coin. The one peso coin, most common of all, depicts the national hero Jos Rizal, and the five peso coin freedom fighter Emilio Aguinaldo. The bimetallic ten peso coin was introduced in 2000, and is not yet (in 2005) in wide circulation, although it is getting more common, and I have

seen the first vending machines accepting it. This coin shows the freedom fighters Apolinario Mabini and Andres Bonifacio. Note that the same heroes also appeared on the (former) bank notes of the same value. You can buy collectible (old and new) Philippine coins and notes directly from the Bangko Sentral ng Pilipnas. An interesting blog on Philippine money is on blogspot. For those interested, I've added some pictures of old Spanish-Philippines coins and US-Philippines coins to this site. Denomination Composition Ring: 75% Copper; 25% Nickel Core: 92% Copper; 6% Aluminum; 2% Nickel 70% Copper; 24.5% Zinc; 5.5% Nickel 75% Copper; 25% Nickel 65% Copper; 35% Zinc 6% Copper; 94% Steel 6% Copper; 94 % Steel 6% Copper; 94% Steel

10 Piso

5 Piso 1 Piso 25 Sentimo 10 Sentimo 5 Sentimo 1 Sentimo

Philippine peso coins are issued by the Bangko Sentral ng Pilipinas for circulation in the Philippines and are currently available in seven denominations. History The United States minted coins for the Philippines from 1903-1945. These coins came in centavo (minted only 1903-1908 with 17.7 million coins; yet unpopular with public and so were discontinued), 1 centavo, 5 centavo, 10 centavo, 20 centavo, 50 centavo, and 1 peso varieties. The and 1 centavo coins were bronze, the 5 centavo nickel, the 10, 20, 50 centavo and peso coins were silver. From 1903-1906, the silver coins had a high content (90% silver, also known as coin silver). The composition was reduced in 1907, due to a jump in silver prices. There was a fear that many of the coins would be melted down for their silver value (which came to pass at various times, especially the 1980s when silver topped $40/troy ounce). The obverse of these coins remained unchanged over their entire run. They were designed by Melecio Figueroa. It has the denomination of the coin written on it, along with "Filipinas". The centavo, 1 centavo, and 5 centavo coins all show a Filipino man kneeling against an anvil, with a hammer resting at his side. He is on the left side (foreground), while in the right side (background) there is a simmering volcano, Mt. Mayon, topped with smoke rings. This figure is an allegory for the hard work being done by the native peoples of the Philippines in building their own future. The obverse of the 10, 20, 50 centavo, and peso coins are similar, but they show the figure of Liberty, a standing female figure (considered by many to be the daughter of the designer 'Blanca') in the act of striking the anvil with a hammer. This was done to show the work being done by Americans in building a better Philippines. Something can probably be read into racial attitudes at the time, since the coins show the Filipino man sitting down, and Liberty working. Also, Liberty (and by extension, America) appears on the silver coins, instead of the base metal coins. The reverse of the coins comes in two varieties. The earliest coins were minted when the islands were a US Territory, and they bear the arms of the US Territories. This is a braodwinged eagle, sitting atop a shield divided into two registers. The upper

register has 13 stars, and the lower register has 13 vertical stripes. The date appears at the bottom, and "United States of America" appears at the top. When the islands became a US Commonwealth, the arms of the Commonwealth were adopted. This seal is composed of a much smaller eagle with its wings pointed up, perched over a shield with peaked corners, above a scroll reading "Commonwealth of the Philippines". It is a much busier pattern, and widely considered less attractive. These coins were minted at Philadelphia, San Francisco, Denver, and (after it was opened in 1920) Manila mints. Most of the Manila mintages occurred after 1925. They have S, D, and M mint marks. Several proof sets were made for collectors, from 1903 to 1908. These were unpopular at the time, and many were later broken up and released into circulation. Some coins were minted in extremely small numbers (as few as 500 pieces occurred in 1905, 1906, & 1908). Also, many were lost when the defenders of Corregidor threw them into the ocean, rather than surrender the Philippine national treasury to the Japanese. Only about 80% were ever recovered, and many of those were badly corroded. However the rarest coins are the 1906-s peso with as few as 250 coins in existence; but the rarest is the 1910-s Ten Centavaos with the only known coin which was on display at the Manila mint, being lost due to the bombing of Manila in 1945 as that the mint building was completely destroyed. Three commemorative coins were minted to celebrate the Commonwealth in 1936. They show President Franklin D. Roosevelt, Commonwealth President Manuel L. Quezon and U.S. High Commissioner Frank Murphy, who also has served as the last Governor General of the Islands. The 50 centavo commemorative had only 20,000 minted, in 75% silver, and weighs 10 grams (the same specs as other 50 centavos). The two varieties of peso commemorative each had 10,000 minted. They weigh 20 grams, and are 90% silver. Philippine piso coins [1] First Minted Year

Image

Value Diameter Weight

Composition

Edge

Obverse

Reverse

1 Image:Php coin sentimo 0.01 (no 15.5 mm 2.0 g obv.pngImage:Php longer coin 0.01 rev.png used)

Round/Plain

Logo of "1 Bangko SENTIMO", Sentral Year Mark ng Pilipinas

Image:Php coin 0.05 5 15.5 mm 1.9 g obv.pngImage:Php sentimo coin 0.05 rev.png

6% copper balanced steel

Words "Bangko Round/Plain</br> "5 Sentral (with 4 mm central SENTIMO", ng 1995 hole) Year Mark Pilipinas" along the border Logo of "10 Bangko SENTIMO", Sentral Year Mark ng Pilipinas Logo of "25 SENTIMO", Bangko Year Mark Sentral ng

Image:Php coin 0.10 10 17.0 mm 2.5 g obv.pngImage:Php sentimo coin 0.10 rev.png

Round/Reeded

Image:Php coin 0.25 25 20.0 mm 3.8 g obv.pngImage:Php sentimo coin 0.25 rev.png

65% copper 35% zinc

Round/Plain

1995

Pilipinas 75% copper 25% nickel Round/Reeded 65% copper 5.35 g 35% zinc Logo of Profile of Bangko Jose Rizal, Sentral Year Mark ng Pilipinas Logo of Profile of Bangko Emilio Sentral Aguinaldo, ng Year Mark Pilipinas

6.1 g 1 piso Image:Php coin 1 rev.png 24.0 mm

1995

2004

Image:Php coin 5 obv.pngImage:Php 5 piso coin 5 rev.png

27.0 mm 7.7 g

70% Round/Plain</br> copper</br> (design bordered 5.5% nickel</br> by 12-scallop) 24.5% zinc

1995

align="center" Template:Coinsilver-color| 10 piso 26.5 mm 8.7 g

Ring: 75% Profiles of copper</br> Andres 25% nickel</br> Bonifacio Round/Interrupted Center: 92% and milled copper</br> 6% Apolinario aluminum</br> Mabini, 2% nickel Year Mark

Logo of Bangko Sentral ng Pilipinas

Template:Coinsilver-color| 2000

Metal Value of Philippine Coins Recently, the Bangko Sentral ng Pilipinas (BSP / Philippine Central Bank) changed the composition of coins it produces. In general, this development is due to higher prices of metal. In particular, the prices of copper and nickelthe main components of RP coinshave soared because China is consuming a lot of them (or what theyre made of). According to Reuters, one-peso coins produced until 2003 are made of material worth P3.50. That means, if you have a million pesos in the bank, you are a million pesos rich. But if you have a million pesos in your piggy bank, you are 3.5 million pesos rich. (My computations say you are P4.19 million rich.) Lets see how much each coin is worth if theyre melted and sold as chunks of metal. Based on prices I got from www.metalprices.com (for metal prices) and finance.yahoo.com/currency (for the peso-dollar exchange rate), Ive computed that: 1. 2. 3. zinc P0.1728 per gram, nickel P1.5249, and copper P0.4066.

Since BSP publishes what each coin is made of, we can compute how much they actually cost. (If you want my Excel matrix of this, leave a comment.) Which coins to melt and which to keep? Of the six coins I studied, three have metal prices significantly higher than their monetary values.

The one-peso coin is worth P4.19 (419% of its monetary value).

The 25-centavo coin is worth P1.23 (494%). The one-centavo coin is worth P0.05 (488%).

The three other coins are P5 (P3.16 metal value, 63% of its monetary value), P0.10 (0.06, 61%), P0.05 (0.05, 93%). The bottomline is, if all of your money is made out of one-peso, 25-centavo or one-centavo coins, you should be four to five times richer than you actually are.

Metal peso - modern coins of Philippines

Name: Monetary unit: Capital: Area: Language: Country code:

Philippines, Republic Peso Philippines Manila of 298 170 sq. km Philippine (state) PH (PHL) 608

National monetary unit of Philippines is peso which is equal 100 centavo. In circulation there are coins in nominal value 1, 5, 10 peso. In 1958 the new series of coins consisting from bronze 1 centavo, brass 5 centavo and 10, 25 and 50 centavo from alloy nickelbrass has been manufactured. In 1967 stamping has been changed to reflect use of the Philippine names for monetary units. It was "Ang Bagong Lipunan" a series. Same year bronze has been replaced with aluminium, and a brass on a Copper-Nickel. In 1972 coins 1 peso, and in 1975 - 5 peso have been manufactured. A series of coins devoted to flora and fauna has been entered into the circulation in 1983, 2 peso are simultaneous with issue of a coin. The sizes of coins began to reduce in 1991, issue of coins has been removed from production 50 centavo and 2 peso in 1994. A modern series of coins is presented since 1995, with production of coins 10 peso in 2000. In December, 2008 the decision on a conclusion from the circulation all coins less, than 1 peso was accepted. That local money was not removed from the country in the illegal method, the Central bank of Philippines has attended to issue of a new coin which is rapped out from cheaper steel.

Money supply In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific [1] time. There are several ways to define "money," but standard measures usually include currency in circulation and demand [2][3] deposits (depositors' easily accessed assets on the books of financial institutions). Money supply data are recorded and published, usually by the government or the central bank of the country. Public and private sector analysts have long monitored changes in money supply because of its effects on the price level, inflation, the [4] exchange rate and the business cycle. That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct relation between money-supply growth and long-term price inflation, at least for rapid increases in the amount of money in the economy. That is, a country such as Zimbabwe which saw rapid increases in its money supply also saw rapid increases in prices (hyperinflation). This is one reason for the reliance on monetary policy as a means of controlling [5][6] inflation. The nature of this causal chain is the subject of contention. Some heterodox economists argue that the money supply is endogenous (determined by the workings of the economy, not by the central bank) and that the sources of inflation must be [7] found in the distributional structure of the economy.

In addition, those economists seeing the central bank's control over the money supply as feeble say that there are two weak links between the growth of the money supply and the inflation rate. First, in the aftermath of a recession, when many resources are underutilized, an increase in the money supply can cause a sustained increase in real production instead of inflation. Second, if the velocity of money, i.e., the ratio between nominal GDP and money supply, changes, an increase in the money supply could have either no effect, an exaggerated effect, or an unpredictable effect on the growth of nominal GDP.

M0: In some countries, such as the United Kingdom, M0 includes bank reserves, so M0 is referred to as the monetary [11] base, or narrow money. [8] MB: is referred to as the monetary base or total currency. This is the base from which other forms of money (like [12] checking deposits, listed below) are created and is traditionally the most liquid measure of the money supply. M1: Bank reserves are not included in M1. [13] M2: Represents M1 and "close substitutes" for M1. M2 is a broader classification of money than M1. M2 is a key [14] economic indicator used to forecast inflation. [15] M3: M2 plus large and long-term deposits. Since 2006, M3 is no longer tracked by the US central bank. However, there are still estimates produced by various private institutions. MZM: Money with zero maturity. It measures the supply of financial assets redeemable at par on demand. Velocity of [16][17][18] MZM is historically a relatively accurate predictor of inflation.

money supply The total supply of money in circulation in a given country's economy at a given time. There are several measures for the money supply, such as M1, M2, and M3. The money supply is considered an important instrument for controlling inflation by those economists who say that growth in money supply will only lead to inflation if money demand is stable. In order to control the money supply, regulators have to decide which particular measure of the money supply to target. The broader the targeted measure, the more difficult it will be to control that particular target. However, targeting an unsuitable narrow money supply measure may lead to a situation where the total money supply in the country is not adequately controlled. Definition of 'Money Supply' The entire stock of currency and other liquid instruments in a country's economy as of a particular time. The money supply can include cash, coins and balances held in checking and savings accounts. Economists analyze the money supply and develop policies revolving around it through controlling interest rates and increasing or decreasing the amount of money flowing in the economy. Money supply data is collected, recorded and published periodically, typically by the country's government or central bank. Public and private sector analysis is performed because of the money supply's possible impacts on price level, inflation and the business cycle. In the United States, the Federal Reserve policy is the most important deciding factor in the money supply Also called money stock.

Investopedia explains 'Money Supply' The various types of money in the money supply are generally classified as "M"s such as M0, M1, M2 and M3, according to the type and size of the account in which the instrument is kept. Not all of the classifications are widely used, and each country may use different classifications. M0 and M1, for example, are also called narrow money and include coins and notes that are in circulation and other money equivalents that can be converted easily to cash. M2 included M1 and, in addition, short-term time deposits in banks and certain money market funds. An increase in the supply of money typically lowers interest rates, which in turns generates more investment and puts more money in the hands of consumers, thereby stimulating spending. Businesses respond by ordering more raw materials and increasing production. The increased business activity raises the demand for labor. The opposite can occur if the money supply falls or when its growth rate declines.

M1 - a measure of the money supply; includes currency in circulation plus demand deposits or checking account balances money supply - the total stock of money in the economy; currency held by the public plus money in accounts in banks fiat [fee-aht, -at; fahy-uht, -at] noun 1. an authoritative decree, sanction, or order: a royal fiat. Synonyms: authorization, directive, ruling, mandate, diktat, ukase. 2. a fixed form of words containing the word fiat, by which a person in authority gives sanction, or authorization. 3. an arbitrary decree or pronouncement, especially by a person or group of persons having absolute authority to enforce it: The king ruled by fiat. Origin: 162535; < Latin: let it be done, 3rd singular present subjunctive of fier to become

Philippines Money Supply M2 Money Supply M2 in Philippines increased to 5611566 PHP Million in June of 2013 from 5251426.96 PHP Million in May of 2013. Money Supply M2 in Philippines is reported by the Bangko Sentral Ng Pilipinas. Philippines Money Supply M2 averaged 1357497.42 PHP Million from 1980 until 2013, reaching an all time high of 5611566 PHP Million in June of 2013 and a record low of 44456 PHP Million in January of 1980. Philippines Money Supply M2 includes M1 plus short-term time deposits in banks. This page contains - Philippines Money Supply M2 - actual values, historical data, forecast, chart, statistics, economic calendar and news.