KINDS OF MONEY

1. COMMODITY MONEY
-When one speaks of commodity money,
the reference is always the so-called
precious metals: gold and silver
-Gold is generally accepted as an
international medium of irrespective of
the ideologies of the countries
involved.

2. FIAT MONEY
Refers to a particular money being used in
a given country as having no mandate
by means of law, order, decree, sanction
or command.
-Fiat means order or sanction.
-In the Philippines, the means of payment
is the currency of peso. This is
mandated by the Central Bank Act.
-

MANAGED CURRENCY
Presently, fiat money has gained
different nomenclature, such as credit
money, fiduciary money, inconvertible
paper money, and non-commodity
money. Nonetheless, as a type of
monetary system, fit money may be
referred to as :
-Managed Paper Currency, Managed
Paper Standard or Inconvertible Paper
Standard.

MONETARY STANDARD
The monetary system of a country is
usually described in terms of its standard
money. When the standard monetary unit
is gold, the country is said to have a gold
standard. If the standard money is silver,
it is silver standard. When both gold and
silver are used as standard money, it is
referred to as bimetallic standard.

GOLD / SILVER STANDARD

Gold or silver standard money has been
acceptable anywhere, especially gold.
This means that there is a domestic
and international confidence in the
monetary standard. Thus, there are no
problems in international trade.
However, gold and silver have their
shortcomings. These are bulky and
heavy. In other words, they lack
portability.

GOLD / SILVER EXCHANGE STANDARD

Gold or silver exchange standard replaced
the gold / silver standard. A representative
money was used as paper or coin money.
The money supply was equivalent to the
amount of gold or silver reserves held by
the government. People could exchange
their representative money with gold or
silver if they wished to.

INCONVERTIBLE PAPER STANDARD

The inconvertible paper standard or
managed currency standard has been
required by the government as the
standard money for all normal transactions.
This makes it legal tender. There are no
gold reserves to ensure general
acceptability. The government orders such
monetary standard as a medium of
exchange ad as a means of debt payments.

DIFFERENT TYPES OF
MONEY USED IN THE
PHILIPPINES

 to the more discerning, money is much more

than a medium of exchange. Money is a
historical document which often provides
clues to the culture, religion and traditions of
a society, primitive or civilized. Money can
be, and often is, a work of art in itself,
reflecting the artistic heritage of a people.
Money is also a record of a peoples
achievements and aspirations, and a
monument to a countrys heroes.

PILONCITOS
Piloncitos are tiny engraved gold coins
found in thePhilippinesfrom the preHispanic era.

CENTRAL BANK SECURITY PRINTING

PLANT, MINT AND GOLD REFINERY
COMPLEX
The complex, composed of five inter-connected
buildings has an approximate floor area of
62,210 sq.m. build along East Ave., with a
total land area of 57,300 sq.m. The Security
Plant Complex consists of the security
Printing Plan, Mint and Gold Refinery, and
office of the General Services; It was
inaugurated on September 7, 1978.

Its purpose was to safeguard the

printing/minting/refining, issuance,
distribution and durability of coins,
banknotes, gold bars, government official
receipts, lottery tickets, internal revenue
stamps, passports, seaman identification
record books, strip stamps, official
documents, registration certificates, Torrens
titles, treasury warrants, stocks and bonds,
government contracts, ration coupons, forms,
checks and other security printing or minting
jobs of the Philippine government.

SECURITY PRINTING PLANT

In a span of 200 working days, the
Plant has the capability of producing
384 million bank notes. In addition to
this, the plant can likewise accept
printing other related security
instruments. Such as MICR-encoded
checks of the banking and financial
systems, deposits passbooks, Torrens
titles, internal revenue stamps,
postage stamps, and others.

THE MINT
Annually, the mint has the capability of
producing 120 million coins of different
denominations.

THE GOLD REFINERY

This is also a silver refinery. Presently, the
process of converting the raw gold bullion
produced by Philippine mining companies
into refined gold of 99.5 to 99.9 fineness
is called electrolysis. The refinery has the
capability of producing 600,000 troy
ounces of gold and 450,000 ounces of
silver annually within the acceptable
standard in the international market.

What is the job of the

Central Bank regarding
our notes and coins
circulation?

Under what authority does the Bangko

Sentral ng Pilipinas (BSP) issue currency?
The BSP is the sole government institution
mandated by law to issue currency. In
particular, Section 50 of Republic Act (R.A.) No.
7653, otherwise known as The New Central
Bank Act, stipulates that the BSP shall have the
sole power and authority to issue currency
within the territory of the Philippines.

What does the BSP issue?

The BSP issues notes and
coins for circulation in the
Philippines. It also issues legal
tender commemorative notes
and coins.

Is there a limit to the amount of

notes and coins that the BSP
may issue?
The total amount of banknotes
and coins that the BSP may issue
should not exceed the total assets
of the BSP.

What is the volume/value of

currency notes and coins
issued by BSP?
There are about 23.65 billion
pieces of coins valued at P26.997
billion and 2.72 billion pieces of
notes valued at P790.34 billion
that had been issued as of 30
September 2015.

If there are individuals who turn the 5sentimo coin, which has a hole in the
center into a necklace, will they be
violating any laws?
Yes. Presidential Decree (P.D.) No. 247 prohibits
and penalizes defacement, mutilation, tearing,
burning or destruction of notes and coins. Thus,
application of outside pressure, substance or
chemicals that may cause deformation,
destruction or change in the original
state/shape/color of the coin is a violation of P.D.
No 247

What do we do when we catch a person

writing/putting marks in banknotes?
In case you caught a person writing/putting marks in
banknotes, please warn or inform the person of the
Anti-mutilation Law or P.D. 247 which prohibits and
penalizes the act of currency defacement
(writing/putting marks), mutilation, burning, tearing or
any manner showing act of wilful/intentional
mutilation. Should the act becomes habitual to a
particular person, the matter should be reported to
the nearest police agency/law enforcer, for
appropriate action or contact the Investigation
Division, Currency Issue and Integrity Office, BSP for
assistance at Tel. Nos.: 988-4833 and 926-5092.

THANK YOU!