Many consider the Philippines the “Pearl of the Orient” due to its rich culture and breathtaking landscapes. Traveling to the Philippines offers rich experiences of culture, beauty, and excitement. If you want to take a trip to this beautiful country or learn ways to send money to the Philippines, understanding the country’s currency, the Philippine peso, is essential.
Explore the rich history of the peso, learn about using the Philippines currency, and discover tips for exchanging your money with Western Union.
What is the currency in the Philippines?
With a population of more than 100 million people, the Philippine country currency — the Philippine peso — is widely used. The peso is abbreviated as PHP and symbolized as “₱.” In local Filipino and Tagalog languages, it’s called “piso.” Peso banknotes range from ₱20 to ₱1,000, with coins denominated from ₱1 to ₱20. Smaller denominations of currency, known as sentimos (or cents), are valued at 100 to 1 peso and are denominated from 1- to 25-sentimo coins.
The Bangko Sentral ng Pilipinas (BSP), or the Central Bank of the Philippines, issues and regulates the currency.
History of the Philippine peso
Philippine money has changed significantly over time. In fact, the currency experienced major changes during several periods of the country’s history:
- Pre-Hispanic Era (before 1521): Before the arrival of Spanish colonizers, Filipinos engaged in a vibrant bartering system, utilizing diverse forms of currency. Among these were Cowry shells crafted from materials like gold, jade, quartz, and wood, reflecting the rich craftsmanship of the era. Eventually, Piloncitos, small gold beads considered the first local form of coinage, emerged as a significant medium of exchange.
- Spanish Colonial Period (1521-1897): The arrival of the Spanish introduced a silver-based coinage system to the Philippines, featuring cobs or macuquians minted in colonial territories. To address the lack of fractional coins, the Spanish locally produced barillas, crude bronze or copper coins valued at approximately one centavo. Gold coins from other Spanish colonies also circulated in the islands, often counterstamped to guarantee authenticity. Notably, the era saw the birth of the peso banknote when El Banco Espanol Filipino de Isabel II issued the “peso fuerte” (strong peso), pegged to the Spanish dollar.
- Philippine Revolution (1898-1899): Asserting its independence, the Philippine Republic under General Emilio Aguinaldo established its own monetary system, a testament to the nation’s aspirations for self-governance. The republic minted unique two-centavo copper coins and printed peso banknotes bearing the signatures of prominent figures like Pedro Paterno, Mariano Limjap, and Telesforo Chuidian. However, this revolutionary currency was short-lived, as it was withdrawn and deemed illegal following Aguinaldo’s surrender to American forces.
- American Colonial Period (1900-1941): Under American rule, the Philippines adopted a gold-backed peso pegged to the US dollar at a 2:1 ratio. The Coinage Act of 1903 formalized this monetary system, further solidifying the link between the Philippine and American economies.
- Japanese Occupation (1942-1945): During World War II, the Japanese occupation brought about a turbulent period for the Philippine currency. The Japanese issued their own banknotes, nicknamed “Mickey Mouse money,” due to their rapidly depreciating value and cartoonish designs, resulting in hyperinflation. In response, some Filipinos used resistance notes in smaller denominations.
- Post-Independence Era (1946-Present): Following the Philippines’ hard-won independence, the Central Bank of the Philippines was established in 1949. Since then, the peso has undergone continuous modernization, with numerous design series and security features implemented to safeguard its integrity and reflect the nation’s evolving identity.
7 tips for exchanging US dollars to Philippine pesos
To exchange USD for Philippine currency, you’ll first need to know the price of USD in the Philippines today. But you’ll also want to follow these tips for easier and cheaper money exchange.
1. Research and compare exchange rates
You wouldn’t buy something online without first researching the best price, so why would you do the same when exchanging currency? Because the Philippine peso is a free-floating currency, its exchange rate fluctuates daily.
You’ll want to track live exchange rates to see if the rate offered by an exchange provider like Western Union or a bank for currency in the Philippines is favorable. Don’t forget to account for any associated exchange fees in your comparison.
2. Notify your bank ahead of traveling
Traveling to the Philippines soon? Don’t forget to let your bank know that you’ll be visiting. The last thing you want is to have your credit or debit card frozen while traveling. Notifying your bank or credit card company about your future travel plans will help prevent any issues with your financial transactions while in the Philippines.
3. Avoid exchanging money at airports, hotels, and tourist areas
Once your plane touches down in the Philippines, exchanging your money at the airport might be tempting. But don’t let this convenience fool you. Airports can have some of the worst rates for exchanging Philippine money. The same goes for hotels, tourist areas, and street vendors who may offer you a seemingly good rate but could be exchanging counterfeit money.
4. Consider commissions and fees
So, you’ve found a good exchange rate and are ready to make your USD to PHP exchange. But did you also remember to read the fine print on any commissions and fees you might be paying for the exchange?
Money exchangers can often charge fees for their services, such as a commission on every transaction, a convenience fee for exchanging in a certain area, fees for exchanging using a credit card, and more. Ensure you fully understand the commissions and fees you will be charged for exchanging Philippine currency.
5. Withdraw pesos instead of US dollars from ATMs
Unlike many other travel destinations, finding ATMs outside major cities in the Philippines can be challenging. So, it can be a good idea to head to an ATM in Manila, Quezon City, or other major metropolises to exchange currency in the Philippines before venturing off the beaten path.
Remember, the best way to convert currency is to choose PHP over USD when withdrawing cash from ATMs to save on conversion fees and get a better exchange rate. Choosing PHP for withdrawals will allow your bank to handle currency conversion, and you will save on fees.
6. Exchange money in the Philippines instead of the US
It’s often better to get Philippine pesos in the Philippines than in the US. You’ll typically get a better Filipino currency conversion rate after you arrive in the country than at home. In the US, you might also have limited options of where you could exchange USD for PHP. But in the Philippines, you’ll have money exchange services like Western Union to choose from.
7. Use reputable exchanges
We’ve established that airports, hotels, and tourist areas aren’t great for getting currency in Philippines. So, where should you exchange your currency? The best way to convert currency is to use reputable and regulated services like banks, financial institutions, authorized exchange providers like Western Union, and trustworthy online platforms. These services will help you exchange money securely.
For example, the Western Union® app utilizes various security measures, such as transfer tracking, encryption, and Touch ID, to secure money. Western Union also uses PCI DSS compliance measures, meaning it securely processes, stores, and transmits financial information according to the highest standards.
Using money in the Philippines
Whether paying for a taxi, hotel, or delicious meal, you’ll need to know how using the Philippines country currency differs from how you typically use money at home.
Can you use USD in the Philippines?
Tourist areas in big cities like Manila may allow you to use USD, but this won’t apply everywhere. To make transacting seamless, you’ll want to ensure you have plenty of PHP to spend on your trip. Using PHP will typically offer better value and convenience and help avoid confusion over exchange rates.
Tipping etiquette in the Philippines
When eating at a restaurant, feel free to leave a 5-10% tip for good service. Tipping isn’t expected for taxis or ride-sharing, but rounding up your bill to the nearest ₱10 can be a nice gesture.
You may find that some services, like hotels, include a service charge of around 10% to your bill, so you won’t need to worry about adding extra gratuity to your payment. Lastly, if you take a long excursion for the day with a driver or tour guide, it can be customary to provide a tip for their service.
Where to get Philippine pesos near me?
After arriving in the Philippines, you’ll need to find a currency exchange near you, like Western Union, to convert your USD to PHP. Most currency exchange providers, banks, or ATMs offer currency exchange. Or, you can convert USD digitally to Philippines currency using an online platform like Western Union and add PHP to your mobile wallet.
FAQs
Can I use my credit card in the Philippines?
You can sometimes use your credit card in the Philippines, but checking with your bank before you travel is important. Most vendors in the Philippines will accept cards from processors like Visa and Mastercard. Remember that you may be charged credit card processing fees when using your card outside the US.
Can I use my debit card in the Philippines?
Like a credit card, you can sometimes use your debit card in the Philippines. Remember that you’ll want to notify your bank that you’ll be traveling so they don’t freeze your card when attempting to use it.
How much is the US dollar in Philippine pesos?
The Philippine peso is a free-floating currency. This means the USD to PHP exchange rate changes daily, so you’ll want to check the latest rate before making your currency exchange.
Can I exchange money through Western Union in the Philippines?
Yes, Western Union has many agent locations across the Philippines where you can exchange currency or receive money sent from abroad.
