Manuel A. Roxas and the Filipino Currency

Manuel A. Roxas: His Impact on the Filipino Currency

Manuel A. Roxas, the first president of the Republic of the Philippines, held office from July 4, 1946, until his untimely death on April 15, 1948. Although his tenure was brief, his actions had significant implications for the country's economic development, including the use of the then-existing currency. Before the arrival of the Spaniards, the native inhabitants used gold, silver, and bronze coins, as well as barter for commerce. Under Spanish influence, the peso became the primary unit of account and currency used in the Philippines.

During the Spanish period, the peso was linked to the Mexican peso, which in turn was tied to the Spanish real. However, the value of the peso fluctuated depending on various factors such as the silver supply in Mexico and the overall state of the Spanish economy. Despite these fluctuations, the Spanish peso remained the official currency throughout most of the Spanish era.

After the Philippines attained independence, the peso continued to serve as the country's currency. During the administration of Manuel A. Roxas, the country was faced with numerous challenges regarding its economy and finances. One of the immediate concerns was the need for rehabilitation following the devastating effects of World War II on the nation's infrastructure. To address this challenge, Roxas implemented measures aimed at reviving the economy and stabilizing the currency.

One of the key initiatives taken during Roxas's leadership was the signing of the Bell Trade Act, which extended free trade with the United States for eight years and imposed a series of tariff increases over the subsequent 20 years. This act aimed to stimulate economic growth and promote trade with the United States, which was a significant trading partner for the Philippines. The tariff reductions would gradually increase over time, providing an incentive for foreign investors to engage in commerce with the country.

Additionally, Roxas negotiated the Parity Amendment, which granted U.S. citizens equal rights with Filipinos in the exploitation of natural resources. This amendment was seen as necessary by the U.S. government to ensure the continued presence of American firms in the Philippines and protect their interests. Although it sparked some controversy among Filipino nationalists who felt that it favored foreign interests, it also helped to strengthen the Philippine economy during this transitional period.

Despite these efforts, the peso remained somewhat volatile in value due to factors such as global economic conditions, shifts in international trade patterns, and regional instability. However, under Roxas's administration, there were steps taken towards stabilizing the currency and building a strong foundation for future economic development.

In conclusion, Manuel A. Roxas played a crucial role in shaping the early history of the Republic of the Philippines, including the use of the peso as the country's official currency. His leadership provided a platform for post-war reconstruction and fostered economic stability through various policies and negotiations, ultimately contributing to the nation's gradual recovery from the devastating effects of World War II.