New Taiwan Dollar (TWD)

Basic Concepts of the New Taiwan Dollar

The New Taiwan Dollar (NTD) is the legal tender of Taiwan, issued and managed by the Central Bank, with the currency code TWD and the commonly used symbol NT$. It serves as Taiwan's official currency in circulation for daily transactions, savings, and international settlements, and has a central role in Taiwan's economic system.

Countries and Regions of Use

The NT$ is mainly circulated and used in Taiwan, China (including the main island of Taiwan, Penghu, Kinmen, Matsu and other dependent islands). It is not applicable to mainland China and other countries, and is the exclusive currency for Taiwan's local economic activities.

Unit and denomination

The basic unit of the New Taiwan Dollar is the "Yuan", while the secondary units are the "Jiao" and "Minute", although the Jiao and Minute are less commonly used. Common banknote denominations include NT$100, NT$500, NT$1,000 and NT$2,000, while coins are available in denominations of NT$1, NT$5, NT$10, NT$20 and NT$50 to meet the needs of different payment scenarios.

Historical Background

The New Taiwan Dollar (NTD) was issued by the Taiwan Provincial Government in 1949 and was initially intended to replace the Old Taiwan Dollar in response to hyperinflation and to stabilize the economy by pegging it to the US dollar. Over time, its issuance authority was transferred to the Central Bank in 2000, and it has gone through several revisions to enhance its security features, reflecting the evolution of Taiwan's economic development and monetary policy.