The New Taiwan Dollar (or the Taiwan Dollar) has been the official currency of the Taiwan Area of the Republic of China since 1949, when it replaced the Old Taiwan Dollar. It was initially issued by the Bank of Taiwan; since 2000 it has been issued by the Central Bank of the Republic of China (ROC).
Economy
Taiwan has a developed capitalist economy that ranks as the 19th largest in the world in GDP and 23rd in nominal terms. The Republic of China governs Taiwan with gradually decreasing guidance in the areas of investment and foreign trade.
Most large government-owned banks and industrial firms have been privatized.
Real growth in GDP has averaged about 8% during the past three decades. Exports have grown even faster and, since World War II, have provided the primary impetus for industrialization.
Taiwanese investors and businesses have become major investors in mainland China, Vietnam, Thailand, Indonesia, and the Philippines.
History
The New Taiwan Dollar was first issued by the Bank of Taiwan on June 15, 1949 to replace the Old Taiwan Dollar at the rate of 40,000 old Dollars = 1 new Dollar.
The main aim of the New Taiwan Dollar was to end the hyperinflation that had plagued Taiwan and mainland China due to the Chinese civil war fought in mainland China.
Taiwan has transformed itself from a recipient of U.S. aid in the 1950s and early 1960s to an aid donor and major foreign investor. Private Taiwanese investment in mainland China is estimated to be in excess of 150 billion USD, and official sources cite Taiwan as having invested a comparable amount in Southeast Asia.
In July, 2000 the New Taiwan Dollar became the official currency of the ROC and is no longer secondary to the silver Yuan. At the same time, the Central Bank of China (now known as the Central Bank of the Republic of China) began issuing New Taiwan Dollar banknotes, and the old notes issued by the Bank of Taiwan were taken out of circulation.
