If you’re planning a trip to the Philippines, sending funds to family, or simply curious about the Philippine peso’s role in the country’s economy and culture, you’re in the right place. Familiarizing yourself with the Philippine peso (₱) is essential for smooth transactions, smart exchanges, and a deeper appreciation of its history.
This guide explains the essentials of Philippine currency, from its origins to exchange rates and practical tips for handling pesos during your visit or transfer.
An Introduction to Philippine Currency
The Philippine peso, locally referred to as the piso in Tagalog, has been the nation’s official currency for decades. It’s printed and regulated by the Bangko Sentral ng Pilipinas (Central Bank of the Philippines). Similar to the U.S. dollar (USD), the peso breaks down into smaller denominations called centavos or sentiments (in Filipino).
Quick Facts About the Peso
- Currency code: PHP
- Symbol: ₱
- Subunits: 1 peso equals 100 centavos
- Coins (commonly in circulation): 1, 5, 10, and 20 pesos, along with 1, 5, 10, and 25 centavos
- Banknotes (current denominations): 20, 50, 100, 200, 500, and 1,000 pesos
Armed with this basic knowledge, you’ll be ready to shop, dine, and exchange pesos without trouble in the Philippines.
The Evolution of the Philippine Peso
The Philippine currency has a long, fascinating history that ties into both global trade and the country’s colonial past.
Early Currency Systems
Long before formal banks and printed money existed, early Philippine societies used barter systems and gold bits called salapi for trade. Some communities also relied on the rupya, silver coins that were introduced through trade routes with India and Indonesia.
Spanish Influences on the Peso
The history of the peso began during Spanish colonial rule in 1565. The introduction of Spanish coinage, specifically the “Real of 8” or Spanish dollar, became the standard. The Spanish dollar featured fractional coinage in 1/2-, 1-, and 8-real pieces, influencing the eventual Philippine peso design.
During this period, Spanish pesos circulated widely in the Americas, Europe, and Asia, making them a precursor to many global currencies, such as the U.S. dollar.
The Centavo and the Push for Independence
By the late 1800s, the Philippines was moving toward independence from Spain. Following its declaration of freedom in 1898, the new government introduced the centavo, a division of the peso, marking the peso’s evolution into a uniquely Filipino identity.
From U.S. Rule to Modern Currency
The introduction of gold-backed pesos under American governance between 1903–1946 further shaped the currency’s stability, tying its value to the U.S. dollar. After World War II and the Japanese occupation, the country regained independence, and the Bangko Sentral ng Pilipinas was established in 1949. This marked the creation of modern Philippine currency as we know it today.
Philippine Peso Exchange Rates Explained
Currency exchange rates fluctuate based on factors such as economic performance, trade relations, and global demand.
For example, as of May 2022:
- 1 USD to PHP: Around ₱52
- 1 GBP to PHP: Around ₱65
- 1 AUD to PHP: Around ₱37
While major global currencies like the USD are typically stronger, the peso fares better when compared to regional currencies, like the Malaysian ringgit or Indonesian rupiah.
Pro Tip for Travelers and Senders
Exchange rates can change daily, so always check an updated rate through banks or money transfer platforms like Remitly to get the best deal.
5 Fascinating Facts About Philippine Currency
The Philippine peso has undergone nearly 500 years of evolution. Here are five intriguing facts about its history and features.
1. Origin from the “Real of 8”
The peso traces its heritage to the Spanish “Real of 8,” a silver coin used during the colonial period. The global reach of this coinage influenced many world currencies, including the U.S. dollar and multiple Latin American pesos.
2. Gold-Backed Coinage
During American colonial rule, the peso’s value was tied directly to a gold standard, with each gold coin valued at half a U.S. dollar. This gold peg was removed post-independence.
3. Culion Currency for Leprosy Patients
In 1906, the government minted a separate subset of pesos known as the Culion currency, specifically for use in leprosy colonies. While ineffective against disease, this currency is now a collector’s item.
4. Counterfeit Guerrilla Pesos
During World War II, Filipino resistance forces printed counterfeit pesos to undermine the Japanese occupiers who aimed to control currency circulation. These guerrilla pesos have since become a symbol of Filipino resilience.
5. Rare Typographical Errors Spark Collecting Interest
A run of peso notes printed in 2005 carried a major typo, spelling President Gloria Macapagal Arroyo’s last name as “Arrovo.” With only 2 million released in circulation, these notes are now a prized find for collectors.
Tips for Handling Philippine Pesos
Whether you’re traveling or transferring funds, proper handling of Philippine currency can save you time and money.
Choose the Right Exchange Methods
- Avoid airport kiosks for exchanging large sums; they often have unfavorable rates.
- Use ATMs for convenient access to pesos if you’re staying in urban areas. International fees may apply, but they often beat the margins charged by exchange counters.
- Bring USD or Euros if you plan on visiting casas de cambio (money-changing stores) in the Philippines.
Request Small Denominations
Many businesses in the Philippines hesitate to accept high-value notes, such as ₱1,000, due to counterfeiting concerns. Request small bills when exchanging pesos.
Inspect Your Cash
Make sure your banknotes are untorn and feel for the security features, such as a watermark or embossed texture. Damaged bills can be rejected by merchants.
Sending Money to the Philippines
Sending funds to the Philippines is an everyday activity for Filipino workers abroad. With platforms like Remitly, you can securely send funds quickly and affordably.
Options include:
- Bank transfers to major Filipino banks like BDO, BPI, and Metrobank.
- Cash pickup at thousands of locations across the Philippines.
- Mobile wallet deposits with providers like GCash or PayMaya.
Remitly offers both standard economy transfers and instant express transfers, with transparent fee structures and competitive exchange rates.
FAQ About the Philippine Peso
What is the currency of the Philippines?
The Philippine peso is the official currency, represented by the symbol ₱ and the currency code PHP.
What banknote denominations are available?
Peso bills come in ₱20, ₱50, ₱100, ₱200, ₱500, and ₱1,000. Coins are also available in centavo and peso denominations.
Why does the peso sometimes lose value against major currencies?
The relative strength of the U.S. dollar and global markets often impacts lower-demand currencies like the peso.
Can I send large sums of money to the Philippines?
Yes, platforms like Remitly support high-value transfers with low fees when using debit cards or bank accounts.
How much cash can I bring into the Philippines?
Travelers may bring up to ₱10,000 without declaring it. Larger sums need customs documentation.
Do local businesses accept foreign currencies?
Some tourist areas and large hotels accept U.S. dollars, but most local establishments only accept pesos.