The colonization of the Philippines in 1565 marked the beginning of the Manila-Acapulco Galleon Trade (1565-1815), a pivotal economic link between Manila and Acapulco, Mexico. This trade route not only facilitated the exchange of goods such as spices, silk, and porcelain but also became a key conduit for the flow of cultures and currencies, solidifying Spain’s mercantile empire on a global scale.

​

Before the start of the Galleon Trade, Spain had already established prominent mints in its American colonies, like Mexico City (1535) and Lima (1568), which were founded before the colonization of the Philippines. These mints produced vast quantities of gold and silver coins, essential for advancing Spain’s ambitions in international trade and financing its empire. 

​

The Manila-Acapulco Galleon Trade brought an influx of these foreign coins into the Philippines. However, the archipelago lacked a native mint until the establishment of the Casa de Moneda de Manila in 1861. Until then, foreign coins—primarily those minted in Spain and its American colonies—functioned as the de facto currency for trade and daily transactions within the islands.

​​

​​During Spain's colonial period, the basic unit of currency was the Real (plural: Reales), which served as the foundation of the Spanish monetary system for centuries. The Real primarily referred to silver coins, while gold coins were denominated in Escudos. The value relationship between these was standardized, with 1 Escudo = 16 Reales. In 1864, Spain transitioned to a new monetary system, introducing the Second Escudo, a silver-based currency where 10 Reales = 1 Escudo.  This system was short-lived and replaced in 1868 by the Peseta, which became Spain's primary currency until the adoption of the euro in the 21st century. 

​​

For over 300 years of Spanish rule in the Philippines, a wide variety of coins circulated in the archipelago. Among these, the Spanish Dollar, also known as the 8 Reales or Pieces of Eight, stood out as a dominant currency, especially in trade. The Spanish Dollar became known as the world’s first truly global currency, highly favored in international trade due to its standardized specifications.  It provided a reliable medium of exchange across continents, from the Americas and Europe to Asia.

​

To understand the currencies that circulated in the Philippines, it is essential to trace their origins, particularly those minted in Spanish America. The categories below highlight the various types of coins produced during the colonial era. While the primary focus is on coins from the Mexico Mint, this also delves into locally produced coins and banknotes from the Spanish colonial period in the Philippines, providing a comprehensive view of the currency used in the archipelago during this time.​

​