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PESO CURRENCY

Philippine Peso

The Peso is the foreign currency of the Philippines. It's subdivided into one hundred centavos. Prior to
1967, English was used on all notes and coins, hence the term “peso” was used as the name of the
currency in the Philippines. When Filipino was introduced as a written language, the term used on notes
and coins became “piso”.

History

Prior to the introduction of a formal currency, trade in the Philippines was performed using a barter
system, and later on “piloncitos” (small pieces of gold) and gold barter rings. The Spanish introduced
coins to the Philippines when they colonized the country in 1521. However, the coins used by Filipino
people were minted in various Spanish countries around the world, leading to major inconsistencies in
purity and weight. In 1861, the first mint was established in order to standardized coinage. After the
Philippines gained independence in 1898, the country’s first local currency was introduced, replacing the
Spanish-Filipino Peso. The United States captured the Philippines in 1901, and established a new unit of
currency that was pegged to exactly half of a US Dollar in 1903. During World War II, the Philippines was
occupied by Japan, and new notes were introduced yet again. The Central Bank of the Philippines was
established in 1949, leading to the reintroduction of a formal Filipino currency.
Economy

The Philippines is estimated to be the 45th largest economy in the world, with a GDP of
USD$216 billion (2011). Major exports includes semiconductors and other electrical
components, transport equipment, clothing, copper and petroleum products and fruits.

In recent times, the Philippines has been transitioning from a agricultural-based economy to one
that increasingly relies on services and manufacturing. Agriculture now only accounts for
roughly 30% of the workforce and about 14% of GDP.

The economy of the Philippines was the second largest in East Asia after World War II.
However the economy stagnated until the 1990s, based on economic policies and political
volatility, and other Asian countries surpassed the Philippines in terms of GDP growth.
In the 1990s, a new program of economic liberalization was introduced, leading to economic
recovery until the 1997 Asian Financial Crisis.