New Taiwan dollar is an important dollar denominated currency in Asian continent. It serves as the official currency of the Republic of China including islands like Taiwan, Penghu, Kinmen and Matsu. The New Taiwan dollar was introduced as the official currency of Taiwan in 1949 for the first time, though Republic of China adopted as its national currency recently in 2000. In local languages, Taiwan dollar is also called "yuan" and is denoted informally with the sign "?" and formally with the sign "?" in Chinese numerals. The currency is also known as "kuài" in Taiwanese language. Normally, in daily transactions, the Taiwan dollar is abbreviated as NT$.
"Jiao" and "cent" forms the subunits of the Taiwan dollar, the previous one is of the value 1/10 of one unit and the latter one is of the value 1/100 of one unit of the currency. According to the International Organisation for Standardisation regulation 4217, New Taiwan dollar is assigned with the currency code TWD and a numeric code 901.
The Portuguese first spotted the island of Taiwan and named "Ilha Formosa" meaning a beautiful island in 1590. Until this time, the major Chinese settlement of Taiwan had not begun. The Dutch, for the first time, colonized the island in 1624 and established a commercial base in there. Though the reign of the Dutch on Taiwan did not last long as in 1662, they were defeated and driven away by the Ming dynasty from southern Fujian. A few years later, at the fall of Ming dynasty, the Qing dynasty officially annexed Taiwan in 1683. All this while, Chinese coins mostly Chinese taels were imported and circulated in Taiwan and it continued to be circulated till the 1800s.
During the mid 19th century, China issued silver dollar to pay for the military expenses and as Taiwan was a part of Chinese empire, the dollars along with Chinese taels started to circulate within the state. In 1895, China surrendered Taiwan to the Japanese and before the defeat of Japan in World War II, Taiwan was ruled over by Japan only. As soon as it got hold of the island, Japan issued Taiwan yen at par with Japanese yen as the currency to be used there. Japan had to return Taiwan back to China after its defeat in the 2nd world war and a separate currency unit for the island was issued in the name Taiwan Nationalist yuan (TWN) that was independent from the official currency of China, Chinese Nationalist yuan. The currency, also popularly known as Old Taiwan dollar, was issued by the Bank of Taiwan and was pegged to Japanese yen. During this time, the value of Chinese yuan was depreciating drastically and so was the value of old Taiwan dollar, but the latter one was depreciated at a much slower rate than the first one.
Also in the 1940s, Taiwan encountered severe inflation due to corruption of the Governor General of Taiwan and in the administration of Bank of Taiwan that printed banknotes in excess than legally permitted. In 1949, the nationalist forces took over Taiwan and the New Taiwan dollar was introduced @ 1 New Taiwan dollar = 40000 old Taiwan dollars. Later in the same year, the Republic of China government had to move to Taiwan. Even after this event, Republic of China continued with Chinese yuan as its national currency and New Taiwan dollars circulated within the country as a de facto currency. In the year 2000, the de facto currency was adopted for the national currency by the Republic of China and it gave up the use of the previous currency.
New Taiwan dollar has recently been adopted as the national currency of Republic of China in the year 2000, though it has served as the national currency of Taiwan since 1949. The economy of Republic of China has flourished since the end of the Chinese civil war and the rapid industrialization the country has gone through is often considered as "Taiwan Miracle". The current situation of the countrys economic profile suggests that Taiwan possesses dynamic, capitalist economy, which is highly driven by exports. Taiwan is even counted among the "Four Asian Tigers" along with three other economies that show like potential including Singapore, South Korea and Hong Kong. Much of the development has been possible with the aid provided by Unites States of America. Also, it is said that when the government Republic of China fled to Taiwan, it brought along with itself, all the gold reserves and the best businesses from the Mainland China. This helped the country control hyperinflation.
Event the currency, New Taiwan dollar has performed really well in the recent years and is still growing strong as against the US dollar. As Taiwan is an export dependent country, the inflation in world oil prices holds a serious threat to the economy but the constantly strengthening currency has leveled the ill effects of oil price inflation till now. All the major currencies are accepted in Taiwan with an export import limit pertaining to local currency is NT$ 60000. This limit is not in case of export import of foreign currency but the transfer of amounts exceeding US$ 10000 need declaration. Taiwan dollar is subdivided by a couple of subunits namely "jiao" that divides one unit into 10 equal parts and "cent" (also known as "fen") that breaks it into 100 equal parts. Although, subunits of Taiwan currency are rarely used due to their low value and all the amounts are rounded off to the nearest dollar denomination. Central Bank of China manages the flow and issue of currency and also supervises two institutions that perform printing and minting function, that are China Engraving and Printing Works and Central Mint of China respectively. The coinage in the currency is issued in 6 denominations i.e. NT$0.5, NT$1, NT$5, NT$10, NT$20 and NT$50. The coins except the NT$0.5 coin have got embossed images of important people in the history of Republic of China. On the reverse sides of the coins below value NT$20, their respective values are depicted while NT$20 and NT$50 coins possess symbolic images. NT$20 coin is hardly seen in circulation the reason for the same being lack of government interest to promote it.
The banknotes of Taiwan dollar are issued in 5 denominations that are NT$100, NT$200, NT$500, NT$1000 and NT$2000. Among these face values of banknotes, only NT$100, NT$500 and NT$1000 are commonly used and the rest two denominations banknotes are not used on a regular basis. The official reason for their unpopularity has not been stated yet but it is being said the cause for such scenario is that these denominations are relatively new and it will take time for the public to get used to them. The banknote series currently under circulation had been launched from July 2000 on. The notes have different color schemes and sizes so that they can be differentiated with ease. The separate color schemes include red color for the NT$100 note, green color for the NT$200 note, the NT$500 banknote is dark brown in color, NT$1000 note in blue color and purple color has been used for NT$2000 banknote.
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