Overview
This lecture explores the evolution, production, and security features of Philippine banknotes, highlighting their historical significance and symbolic elements.
History of Philippine Currency
- Filipinos first used paper currency in the mid-19th century under Spanish rule.
- The Central Bank of the Philippines was established in 1949, introducing Great Filipinos on banknotes.
- The "English series" was followed by the "Filipino series" in the 1960s, translating notes into the national language.
- 1970s banknotes featured "Ang Bagong Lipunan" to reflect the New Society program.
- Post-1986, new designs commemorated historical figures and events.
- The Bangko Sentral ng Pilipinas (BSP) was established in 1993, and its logo was added to all denominations.
Banknote Production Process
- Currency demand is determined by economic trends, price movements, and population growth.
- The Security Plant Complex sources materials and prints the banknotes using 80% cotton and 20% Philippine abaca.
- Offset and intaglio printing processes give notes distinctive colors and tactile features.
- Each note undergoes thorough inspection, serial numbering, cutting, bundling, and distribution to banks.
Currency Management and Policy
- The BSP prints only the amount of money necessary for stable prices and sustainable economic growth.
- Excessive money printing causes inflation and reduces purchasing power.
New Generation Philippine Banknotes
- Each denomination highlights a prominent Filipino and an iconic natural site or species.
- Security and design upgrades include indigenous weaves and national symbols.
Security Features of Banknotes
- Unique texture: roughness from cotton-abaca paper and embossed intaglio prints.
- Serial numbers: one/two-letter prefix and six to seven digits, varying in size.
- Red and blue fibers glow under UV light.
- Watermark: shadow image of portrait and denomination visible against light.
- Complete Baybayin script appears when held to light.
- Concealed denomination appears when banknote is rotated.
- Security threads: 2mm in ₱20/₱50; 4mm metallic thread in ₱100, ₱200, ₱500, ₱1000 notes, color shifts from red to green.
- OVD (Optically Variable Device) patch and optically variable ink for higher denominations, changing color at different angles.
Key Terms & Definitions
- BSP (Bangko Sentral ng Pilipinas) — The central bank and monetary authority of the Philippines.
- Intaglio Printing — A printing process that creates raised, tactile prints on banknotes.
- OVD Patch — A security feature using reflective foil that changes color depending on the angle.
- Watermark — A faint image embedded in the paper, visible when held against light.
Action Items / Next Steps
- Review and familiarize yourself with the security features of Philippine banknotes.
- Prepare for questions on the history and production process of local currency.