Japanese Invasion money of the Philippines

Flag of the Second Philippine Republic under the Japanese

The Philippines, an American possession in Asia obtained from the Spanish, changed hands once more in 1942, this time by the Japanese who were rapidly conquering countries in South East Asia. On 10 December, 1941 Japanese troops landed on Luzon. The Japanese overran Manila on 2 January, 1942
Japanese Bombing of Corregidor

In the process of capturing the Philippines, more than $20.5 Million in U.S. and local cash and an unknown amount of foreign currency and bullion in that capital city and after that,the Japanese Military would confiscate all hard currency, both on a federal and individual level, and replace it with notes printed locally and bearing a proclamation of military issue. The Japanese used this hard currency abroad to purchase raw materials, rice and weapons to fuel and feed its war machine. In its place the Japanese issued several series of invasion notes.
Japanese flame-thrower attack on an American blockhouse in the main defense-line on Bataan. On January 23, the defenders were forced to fall back.

All notes bear the name of the issuer, “The Japanese Government” while some notes proclaim the “promises to pay the bearer on demand…” This money, called “Mickey Mouse Money” by local Filipinos was considered valueless after the overthrow of the Japanese, and literally tons of it was burned. Additionally, Japanese troops were ordered to destroy bank records and any remaining currency prior to capitulation
Japanese Soldiers Batter Corregidor with Captured 12-Inch Guns


The occupying Japanese government issued fiat currency in several denominations known as Japanese government-issued Philippine fiat peso. The Japanese-sponsored Second Philippine Republic under Jose P. Laurel outlawed possession of guerilla currency and declared a monopoly on the issuance of money and anyone found to possess guerilla notes could be arrested.
Due to the fiat nature of the currency, the Philippine economy felt the effects of hyperinflation.
Japanese troops go ashore to complete the occupation of Corregidor island. General Homma’s original plan of attack had nearly been defeated by strong American resistance—but his forces had gained a foothold despite their losses, and fought their way towards the heart of Wainwright’s defense at Malinta tunnel.

The Filipinos called the fiat peso, "Mickey Mouse" money, because it was similar to play money and next to worthless. 75 Mickey Mouse pesos, or about 35 U.S. dollars at that time, could buy one duck egg.In 1944, a box of matches cost more than 100 Mickey Mouse pesos.
Many survivors of the war tell stories of going to the market laden with suitcases or "bayong" (native bags made of woven coconut or buri leaf strips) overflowing with the Japanese-issued bills. This story is similar in all the occupied countries, the only difference is the thing used to carry the banknotes but these situations are all the same.
Japanese victory at Bataan

All notes bear the name of the issuer, “The Japanese Government” while some notes proclaim the “promises to pay the bearer on demand…” This money, called “Mickey Mouse Money” by local Filipinos was considered valueless after the overthrow of the Japanese, and literally tons of it was burned. Additionally, Japanese troops were ordered to destroy bank records and any remaining currency prior to capitulation
Japanese Victory Parade Through Manila, Capital of the Philippine Islands

The first issue in 1942 consisted of denominations of 1, 5, 10 and 50 centavos and 1, 5, and 10 Pesos. 1943 brought “replacement notes” of the 1, 5 and 10 Pesos while 1944 ushered in a 100 Peso note and soon after an inflationary 500 Pesos note.
Near the end of the war in 1945 the Japanese issued a 1,000 Pesos note. Plates for this note were first completed in Manila shortly before U.S. troops entered the city on 3 February, 1945, and the Japanese printed the 1,000 Pesos note while they were retreating from Manila to Baguio. The Japanese were on the defensive and short of supplies, including printer’s ink, which they diluted with duplicator fluid in an effort to stretch their stores. These invasion notes are shown below including an issue unknown to many collectors featuring Jose Rizal on it.

1942 Issue
1943 Issue

1944-1945 Issue

After Us Troops landed in the Philippines, many Filipinos were reluctant to accept the Japanese military notes introduced and prompted the Japanese to issue a new currency which they hope would be more acceptable by designing notes bearing the Jose Rizal and would be printed in Tagalog instead of English and issued in the name of “Bangko Sentral ng Philipinas” under the authority of “Republika ng Philipinas”.However there wasn’t enough time and by the time the first note was completed the war was over.Below is the only denomination that was finished and was never circulated in the public.