TWD - New Taiwan Dollar

New Taiwan Dollar overview

New Taiwan Dollar is issued and regulated by the Central Bank of the Republic of China (Taiwan). Each New Taiwan Dollar is divided into 100 cents (jiao). While the cent is a smaller denomination, it is rarely used in daily transactions today.

Taiwan is a global leader in the technology and semiconductor industries, which significantly impacts the strength of the TWD. The currency is widely accepted in international trade and is frequently exchanged in global financial markets. The New Taiwan Dollar remains one of the most stable currencies in Asia.

History of the New Taiwan Dollar (TWD)

The history of the New Taiwan Dollar (TWD) began in 1949, when the government of Taiwan introduced the currency to replace the old Taiwan Dollar. The old currency had suffered significant devaluation due to hyperinflation in the post-war period. This transition marked a critical step in restoring monetary stability within the country and laid the foundation for Taiwan's economic development.

In the 1960s and 1970s, the TWD maintained a fixed exchange rate with the US dollar to support Taiwan's export-oriented economic policies. This strategy contributed significantly to rapid industrialization, transforming Taiwan into one of the prominent "Asian Tiger" economies.

By the 1980s, Taiwan adopted a managed floating exchange rate system, allowing the TWD to adjust more flexibly to fluctuations in the international currency market while safeguarding the economy against global shocks.

New Taiwan Dollar denominations

Currently, the New Taiwan Dollar (TWD) is available in a variety of coin and banknote denominations, catering to diverse financial needs and reflecting the unique culture of the nation.

TWD Coin

• 1 yuan: The smallest denomination, typically used for small transactions. This coin is made of aluminum alloy.

• 5 yuan: A yellow coin made of copper-nickel alloy, commonly used in daily transactions.

• 10 yuan: A silver-colored coin of a larger size, one of the most frequently used denominations.

• 20 yuan: Less commonly seen in circulation but still retains its legal tender status.

• 50 yuan: The largest coin denomination, often used for higher-value transactions.

TWD Banknote

• 100 TWD: A red-colored note featuring Sun Yat-sen, the founder of the Republic of China. The reverse side shows the Zhongshan Hall in Taipei.

• 200 TWD: A green-colored note depicting Chiang Kai-shek on the front, with the Presidential Office Building in Taipei on the reverse.

• 500 TWD: A brown-colored note featuring Taiwan’s famous baseball team on the front and the Formosan sika deer on the reverse.

• 1000 TWD: A blue-colored note with an image of elementary school students on the front and the Mikado pheasant, a bird endemic to Taiwan, on the reverse.

• 2000 TWD: A purple-colored note, the highest denomination, showcasing the Formosat satellite tracking station on the front and the Masu salmon, an endemic species, on the reverse.

Exchange Rate Policy of the TWD

The New Taiwan Dollar (TWD) currently operates under a managed floating exchange rate system, allowing the Central Bank of the Republic of China (Taiwan) to adjust the exchange rate as needed to protect the national economy. The TWD remains stable and competitive in the foreign exchange market due to Taiwan’s prudent government policies, fostering a robust economic environment and attracting international investment.

While the TWD is often pegged to the USD, it still fluctuates based on market supply and demand, as well as domestic and international economic factors. Thanks to careful exchange rate management, the TWD has enabled Taiwan to maintain stable economic growth and minimize external financial risks.

Exchange Rate of the New Taiwan Dollar Compared to Other Currencies

The TWD typically maintains stability against other currencies, particularly the USD, thanks to Taiwan's strong economic development and its trade relationships with partner countries. Currently, the exchange rate of the TWD is approximately 1 TWD ≈ 0.03 USD, subject to market fluctuations.

The TWD is easily exchangeable at banks, airports, or reputable money exchange services in countries with active trade and tourism ties to Taiwan. From its stable exchange rate to its deep economic connections, the TWD plays an essential role in international trade and transactions.