DEFINITION of PHP (Philippine Peso)
The PHP is the currency abbreviation or currency symbol for the Philippine peso (PHP), the currency of the Philippines. The Philippine peso is made up of 100 centavo or sentimo and is often represented with a symbol that looks like the capital Latin letter "P" with two horizontal slashes through the circular top half, a "P" with one horizontal slash, or just P.
BREAKING DOWN PHP (Philippine Peso)
The peso was originally created in 1852 as a replacement for the Spanish dollar. Through revolution, colonialism, and war, the peso survived. However, it did suffer many devaluations and demonetizations. The Central Bank of the Philippines was created in January of 1949, and the colonial pesos which were being hoarded rather than surrendered were demonetized in 1964. From 1964 on, the exchange rate has been allowed to float. It has undergone many more devaluations since being allowed to float.
During World War 2, Japan introduced its own currency, or "emergency notes" for use while occupying during the war. Because of the excess currency in the Philippines at the end of the war, the country experienced a period of hyperinflation.
In 2005, nearly 80 million 100-peso banknotes were printed with President Gloria Macapagal-Arroyo's name misspelled. The notes were printed, and many circulated with her last name spelled Arrovo, which was not the first time a spelling mistake had been made in print peso. The original 50-cent coin had misspelled the name of the eagle printed on the back of the coin.
During the Asian Financial Crisis, the PHP lost 50% of its value against the U.S. dollar in less than three years.