Origins and history of the New Taiwan dollar
The new dollar is the legal currency of Taiwan. It is currently also circulating in the territories under Taiwanese sovereignty like the Pescadores, Kinmen, Matsu and Pratas Islands since 1949. It was originally issued by the Bank of Taiwan, and is currently issued by the Central Bank of the Republic of China.
The first new dollar was issued on June 15, 1949 to replace the old Taiwanese dollar with an exchange rate of $ 40,000 for 1 new dollar. The main goal of this new dollar was to end the hyperinflation suffered by Taiwan and China during the Chinese Civil War. A few months later, the government of the Republic of China under the Kuomintang was defeated by the Chinese communists and retreated to Taiwan.
Although the Taiwan dollar was a de facto currency, for years the old Chinese yuan remained the official currency of the Republic of China. This yuan was a fiduciary currency, although it was detached from the value of silver during World War II, in fact, many of the old statutes of the Republic of China have in their content denominations with yuan.
According to the regulation on the exchange rate between new Taiwanese dollars and the fiduciary currency in the Republic of China, the exchange rate was set at 3 TWD per 1 yuan of silver and was never changed. Although the silver yuan was the main currency of legal tender, it was impossible to buy, sell or use it, so it did not exist in front of the public.
Notes and coins of the New Taiwan dollar
Currently coins of ½, 1, 5, 10, 20, 50 dollars and 100, 200, 500, 1,000, 2,000 dollars are circulating.
Did you know?
- According to its own Constitution, the official name of Taiwan is the Republic of China, and not Taiwan as it is usually called.
- On the other hand, 26 countries do consider Taiwan as an independent country, in most small countries that have it as a major commercial ally, such as Tuvalu, Solomon Islands, Swaziland, Nauru, Belize or Kiribati.
- The Taiwanese do not want to know anything about being called Chinese and for them there is no doubt that Taiwan is an independent country. But for the Chinese, China is one, the People's Republic of China, and that also includes the "rebel island".
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