Philippine peso

The Philippine peso, also referred to by its Filipino name piso (Philippine English: /ˈpɛsɔː/ PEH-saw, /ˈpiː-/ PEE-, plural pesos; Filipino: piso [ˈpisɔː, ˈpɪsɔː]; sign: ₱; code: PHP), is the official currency of the Philippines. It is subdivided into 100 sentimo, also called centavos.

The peso has the symbol "₱", introduced during American rule in place of the original peso sign "$" used throughout Spanish America. Alternative symbols used are "PHP", "PhP", "Php", or just "P".

The monetary policy of the Philippines is conducted by the Bangko Sentral ng Pilipinas (BSP), established on January 3, 1949, as its central bank. It produces the country's banknotes and coins at its Security Plant Complex, which is set to move to New Clark City in Capas, Tarlac.

The Philippine peso is derived from the Spanish peso or pieces of eight brought over in large quantities from Spanish America by the Manila galleons of the period from the 16th century to the 19th. From the same Spanish peso or dollar is derived the various pesos of Spanish America, the dollars of the US and Hong Kong, as well as the Chinese yuan and the Japanese yen.

Pre-colonial trade between tribes of what is now the Philippines and with traders from the neighboring islands was conducted through barter. The inconvenience of barter, however, later led to the use of some objects as a 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-like gold bits considered by the local numismatists as the earliest coin of the ancient peoples of the Philippines, and gold barter rings. The original silver currency unit was the rupya or rupiah, brought over by trade with India and Indonesia.

Two native Tagalog words for money which survive today in Filipino were salapi and possibly pera. Salapi is thought to be from isa (one) + rupya which would become lapia when adapted to Tagalog. Alternately, it could be from Arabic asrafi (a gold coin, see Persian ashrafi) or sarf (money, money exchange). Pera is thought to be from Malay perak (silver), which also has a direct cognate or adaptation in Tagalog/Filipino as pilak. Alternately, it could be from 10 and 5 céntimo coins of the Spanish peseta, known as the perra gorda and perra chica.

The Spanish dollar, or silver peso (worth eight reales), was first introduced by the Magellan expedition of 1521 and brought in large quantities after the 1565 conquest of the Philippines by Miguel López de Legazpi. The local salapi continued under Spanish rule as a toston or half-peso coin. Additionally, Spanish gold onzas or eight-escudo coins were also introduced with identical weight to the Spanish dollar but valued at 16 silver pesos.

The earliest silver coins brought in by the Manila galleons from Mexico and other Spanish American colonies were in the form of roughly-cut cobs or macuquinas. These coins usually bore a cross on one side and the Spanish royal coat-of-arms on the other. These crudely made coins were subsequently replaced by machine-minted coins called Columnarios (pillar dollars) or "dos mundos (two worlds)" in 1732 containing 27.07 grams of 0.917 fine silver (revised to 0.903 fine in 1771).