This coin is one of a series minted by the Spanish authorities in Manila in an attempt to drive out foreign coin (mostly Mexican) circulating there. There are also silver ten and fifty centimos and gold one, two and four pesos, all with the portrait of Queen Isabella. During the reign of Alfonso XII, silver ten, PCGS 555075 - 1885 20 Centimos|twenty]] and fifty centimos were struck dated 1880-85. The SCWC notes an 1885/3 overdate for the fifty centimos.
The Philippines were conquered by Spain in the late 1500's. Other than introducing Christianity, the colonizers made little effort to develop the islands which gradually fell into the hands of the friars. Manila was important only as a way station on the route from China to Mexico and whatever coins were used there were derived therefrom. Crude, locally produced copper coins were issued c.1798-1835 and in the 1830's large quantities of Latin American pesos were counterstamped "F.7" or "Y.II" for local circulation. Finally, about 1860, a reforming government in Madrid sent the resources to reorganize the Manila mint and modern coinage began. These included gold one, two and four pesos (struck 1861-68).
After the Americans seized the archipelago during the Spanish-American war, all the Spanish issues were demonetized in 1904.
Recorded mintage: 22,700,000 (including restrikes made 1886-98).
Specification: 12.98 g, .900 fine silver, .348 troy oz ASW.
Catalog reference: KM 150.
Bruce, Colin R., and Thomas Michael, Standard Catalog of World Coins, 1801-1900, 5th ed., Iola, WI: Krause Publications, 2006.
 Ganzon de Legarda, Angelita, Piloncitos to Pesos, A Brief History of Coinage in the Philippines, Manila: Bancom Development Corporation, 1976.