Monetary Standard

2081 WordsJan 4, 20139 Pages
Chapter 2: History of Philippine Currency and Philippine Monetary Standards Source: Financial System, Market & Management- the basics- Laman, Rose Marie et al., 2008 Nature of the Monetary Standard • A country is said to have established a monetary standard or system when it sets down rules to govern the creation of money and control the quantity in circulation whether the rules are strictly followed or are to be accepted simply as guidelines for its own money managers • Standard money is the monetary unit recognized by the government as the ultimate basic standard of value upon which all other kinds of money are convertible. • In the Philippines, the monetary system is the managed currency system, and the monetary unit is the Peso.…show more content…
- People accept this paper money because the government has given it a legal tender power. History of Money Pre-Spanish Regime • Between the 8th and 14th century, the penniform gold barter ring was being used in trading with foreign merchants • It was believed that the Piloncito , a crude rounded gold coin with flat sides and with a diameter of about 3/8 of an inch circulated in the country during the Majapahit Empire. This was believed to have been used for big transactions. Spanish Regime • Hilis kalamay was used after the arrival of the Spaniards in 1521. It bore the seals of the Spanish rulers Charles II, Philip IV and Philip V. • When the Spanish regime started in 1571, coins minted in Mexico called cabo de bara de plata where the first coins that were widely circulated during and after the reign of King Philip II. • During the reign of king Philip V (1700-1746), the first coin minted in the Philippines was called Spanish Barilla. The coat of Manila was engraved on the center of the coin, The term barya was rooted from this coin. • From 1732-1772, during the height of the galleon trade, the Spansih Dos Mundos was used. • In 1776, a second coin was minted in the
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