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New Taiwan dollar

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New Taiwan dollar

New Taiwan dollar
新臺幣 or 新台幣
ISO 4217 code TWD
Central bank Central Bank of the Republic of China (Taiwan)
 Website .tw.gov.cbcwww
User(s)  Taiwan
Inflation 2.34%
 Source [1], January 2014
 Method CPI
Subunit
 1/10
jiao
 1/100 cent (分, fēn)
Subunits used only in stocks and currencies
Symbol $ or NT$
Nickname kuài (塊)
 角 máo (毛)
Plural dollars (English only)
cent (分, fēn) cents (English only)
Coins
 Freq. used $1, $5, $10, $50
 Rarely used $½, $20
Banknotes
 Freq. used $100, $500, $1000
 Rarely used $200, $2000
Printer China Engraving and Printing Works
 Website .tw.gov.ceppwww
Mint Central Mint
 Website .tw.gov.cmcwww
New Taiwan dollar
A NT$100 note issued by the Bank of Taiwan in February 1988. It was taken out of circulation on July 1, 2002, as it had been replaced by a new NT$100 note on July 2, 2001 issued by the Central Bank.
Traditional Chinese 新臺幣 or 新台幣
Simplified Chinese 新台币
Alternative Chinese name
Chinese 新臺票

The New Taiwan dollar has been the currency of Taiwan since 1949 when it replaced the Old Taiwan dollar. Originally issued by the Bank of Taiwan, it has been issued by the Central Bank of the Republic of China (Taiwan) since 2000. The currency code is TWD, and its common abbreviation is NT$.

Contents

  • Etymology 1
  • History 2
  • Coins 3
    • Remarks 3.1
  • Banknotes 4
  • Taiwan 100-dollar commemorative note 5
  • See also 6
  • References 7
  • External links 8
    • News 8.1

Etymology

The Chinese term equivalent to "New Taiwan dollar," 新臺幣 or 新台幣, is used only in contexts where it is necessary to avoid any ambiguity, such as banking, contracts, or foreign exchange. In common usage, the unit is typically referred to as yuán. In Taiwan, the character for yuan can be written in either of two forms, an informal 元 or a formal 圓, which are interchangeable. Colloquial alternatives for the currency unit include the Mandarin kuài (塊), meaning "piece", and the Taiwanese Hokkien kho͘ (箍 ; literally "circle"). In English usage the new Taiwan dollar is often abbreviated as NT, NT$, NT Dollar or NTD, while the abbreviation TWD is typically used in the context of foreign exchange rates. Subdivisions of a new Taiwan dollar are rarely used, since practically all products on the consumer market are sold in whole dollars.

History

The New Taiwan dollar was first issued by the Bank of Taiwan on June 15, 1949, to replace the Old Taiwan dollar at a ratio of 40,000 to one. The first goal of the New Taiwan dollar was to end the hyperinflation that had plagued Nationalist China due to the Chinese Civil War.

After the communists captured Beijing in January 1949, the Nationalists began to retreat to Taiwan. China's gold reserve was moved to Taiwan in February. The government then declared in the Temporary Provisions Effective During the Period of Communist Rebellion that dollars issued by the Bank of Taiwan would become the new currency in circulation.[1]

Even though the New Taiwan dollar was the de facto currency of Taiwan, for years the silver yuan remained the legal currency. The value of the silver yuan was decoupled from the value of silver during World War II. Many older statutes have fines and fees given in this currency.

According to statute, three New Taiwan dollars is worth one silver yuan.[2] Despite decades of inflation, this ratio has not been adjusted. This made the silver yuan a purely notational currency long ago, nearly impossible to buy, sell, or use.

When the Temporary Provisions were made ineffective in 1991, the ROC lacked a legal national currency until the year 2000, when the Central Bank of China (CBC) replaced the Bank of Taiwan in issuing NT bills.[1] In July 2000, the New Taiwan dollar became Taiwan's legal currency. It is no longer secondary to the silver yuan. At this time, the central bank began issuing New Taiwan dollar banknotes, and the notes issued earlier by the Bank of Taiwan were taken out of circulation.

The exchange rate compared to the United States dollar has varied from less than ten to one in the mid-1950s, more than forty to one in the 1960s, and about twenty-five to one in 1992. The exchange rate as of October 2013 is 29.4 to one.[3]

Coins

The denominations of the Taiwan dollar in circulation are
Currently Circulating Coins
Image Value Technical parameters Description Date of
Diameter Weight Composition Obverse Reverse first minting issue
NT$½ 18 mm 3 g 97% copper
2.5% zinc
0.5% tin
Mei Blossom, "中華民國XX年"1 Value 1981
(Minguo year 70)
December 8, 1981[4]
NT$1 20 mm 3.8 g 92% copper
6% nickel
2% aluminium
Chiang Kai-shek, "中華民國XX年" December 8, 1981[4]
NT$5 22 mm 4.4 g Cupronickel
75% copper
25% nickel
Chiang Kai-shek, "中華民國XX年" Value 1981
(Minguo year 70)
December 8, 1981[4]
NT$10 26 mm 7.5 g December 8, 1981[4]
NT$20 26.85 mm 8.5 g Ring: Aluminium bronze (as $50)
Center: Cupronickel (as $10)
Mona Rudao, "莫那魯道"2, "中華民國XX年" Traditional canoes used by the Tao people 2001
(Minguo year 90)
July 9, 2001[5]
NT$50 28 mm 10 g Aluminium bronze
92% copper
6% aluminium
2% nickel
Sun Yat-sen, "中華民國XX年" Latent images of both Chinese and Arabic numerals for 50 2007
(Minguo year 96)
April 26, 2007[6]
These images are to scale at 2.5 pixels per millimeter. For table standards, see the .

Coins are minted by the Central Mint of China, while notes are printed by the China Engraving and Printing Works. Both are run by the Central Bank. The NT$½ coin is rare because of its low value, while the NT$20 coin is rare because of the government's lack of willingness to promote it. As of 2010, the cost of the raw materials in a NT$½ coin is worth more than the face value of the coin.

Remarks

  1. "中華民國XX年" = "Minguo XX". "中華民國" is also the state title "Republic of China".
  2. "莫那魯道" = "Mona Rudao", anti-Japanese leader at the Wushe Incident.

Banknotes

The current series of banknotes for the new Taiwan dollar began circulation in July 2000. This set was introduced when the new Taiwan dollar succeeded the silver yuan as the official currency within Taiwan.

The current set includes banknotes for NT$100, NT$200, NT$500, NT$1000, and NT$2000. Note that the NT$200 and NT$2000 banknotes are not commonly used by consumers. This may be due to the tendencies of consumers to simply use multiple NT$100 or NT$500 bills to cover the range of the NT$200, as well as using NT$1000 bills or credit/debit cards instead of the NT$2000 bill. Lack of government promotion may also be a contributing factor to the general lack of usage.

It is relatively easy for the government to disseminate these denominations through various government bodies that do official business with the citizens, such as the post office, the tax authority, or state owned banks. There is also a conspiracy theory against the Democratic Progressive Party, the ruling party at the time the two denominations were issued. The conspiracy states that putting Chiang Kai-shek on a rarely used banknote would "practically" remove him from the currency, while "nominally" including him on the currency would not upset supporters on the other side of the political spectrum that much (the Pan-Blue Coalition).

1999 Series
Image Value Dimensions Main Color Description Date of Remark
Obverse Reverse Watermark printing issue withdrawal
The front and back of the fifth series of the paper note for 100 NT. NT$100 145 × 70 mm Red Sun Yat-sen, "The Chapter of Great Harmony" by Confucius Chung-Shan Building Mei flower and numeral 100 2000
(Minguo 89)
July 2, 2001
NT$200 150 × 70 mm Green Chiang Kai-shek, theme of land reform and public education The Office of the President Orchid and numeral 200 2001
(Minguo year 90)
January 2, 2002
Original release of NT500 in 2000 NT$500 155 × 70 mm Brown Youth baseball Formosan sika deer and Dabajian Mountain Bamboo and numeral 500 2000
(Minguo year 89)
December 15, 2000 August 1, 2007 without holographic strip
Updated release of NT500 in 2005 Dark brown 2004
(Minguo 93)
July 20, 2005 with holographic strip
NT$1000 160 × 70 mm Blue Elementary Education (errors[7][8]) Mikado pheasant and Yushan (Jade Mountain) Chrysanthemum and numeral 1000 1999
(Minguo year 88)
July 3, 2000 August 1, 2007 without holographic strip
Original release of NT1000 in 1999 2004
(Minguo year 93)
July 20, 2005 with holographic strip
NT$2000 165 × 70 mm Purple FORMOSAT-1, technology Formosan landlocked salmon and Nanhu Mountain Pine and numeral 2000 2001
(Minguo year 90)
July 1, 2002
These images are to scale at 0.7 pixels per millimeter.

The year 2000 version $500 and 1999 version $1000 notes without holographic strip were officially taken out of circulation on August 1, 2007. They were redeemable at commercial banks until September 30, 2007. As of October 1, 2007, only the Bank of Taiwan accepts such notes.[9]

Taiwan 100-dollar commemorative note

NT$100_20110106
On 6 January 2011, the Central Bank issued a new 100-dollar legal tender circulating commemorative in celebration of the 100th anniversary of the founding of the Republic of China. The red paper note measures 145 × 70 mm and features a portrait of Dr. Sun Yat-Sen on the front, and the Chung-Shan Building on the back. The design is no different from the ordinary NT$100 note, except for the wording in Chinese language in the reverse of the note, which reads: “Celebrating the 100 years of founding of the Republic of China.”[10]

See also

References

  1. ^ a b
  2. ^ s:Regulation of exchange rate between new Taiwan dollars and the fiat currency in the ROC laws
  3. ^
  4. ^ a b c d http://www.cbc.gov.tw/issue/money/tb1.htm 中央銀行發行之貨幣及偵偽鈔辨識
  5. ^
  6. ^
  7. ^
  8. ^ Taiwan's 1999 $1000 bill globe reversed
  9. ^
  10. ^

External links

  • (Chinese) (English) SinoBanknote
  • Virginia Sheng, "Notes from a Small Island", Taipei Review, September 1, 2000
  • The Taiwanese hyperinflation and stabilization of 1945 - 1952
  • Banknotes of Matsu, Quemoy and Tachen
  • Close up image of a circulated 50 NT coin
  • The Central Bank page showcasing all obsolete issues of the new Taiwan dollar in all denominations

News

  • New NT$500 and NT$1000 banknotes introduced, anti-counterfeit measures taken [2] Taiwan News (online), July 20, 2005
Preceded by:
Old Taiwan dollar
Reason: inflation
Ratio: 1 new dollar = 40,000 old dollars
Currency of Taiwan
1949 –
Note: After the communists took over most of Mainland China, the government of the Republic of China controlled only Taiwan and some offshore islands.
Succeeded by:
Current
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