The New Taiwan Dollar (TWD) is the official currency of Taiwan, introduced on June 15, 1949, to replace the Old Taiwan Dollar at a ratio of 1 New Taiwan Dollar to 40,000 Old Taiwan Dollars. The New Taiwan Dollar is issued and managed by the Central Bank of the Republic of China (Taiwan) and is abbreviated as "NT$" or simply "NTD."
The New Taiwan Dollar is divided into 100 smaller units called cents or "fen" in Mandarin. However, cents are rarely used in practice due to their low value. The currency is available in both banknotes and coins. Banknotes are issued in denominations of 100, 200, 500, 1000, and 2000 NTD, while coins are minted in denominations of 1, 5, 10, 20, and 50 NTD.
The value of the New Taiwan Dollar is determined by market forces, and its exchange rate fluctuates against other currencies based on supply and demand. The Central Bank of Taiwan intervenes in the foreign exchange market when necessary to maintain stability and reduce excessive volatility in the currency's value.
The New Taiwan Dollar plays a crucial role in Taiwan's economy, serving as a medium of exchange, store of value, and unit of account. As one of the major currencies in the Asia-Pacific region, the NTD is used in various international transactions, and its stability and strength reflect the overall health of the Taiwanese economy.
It is important to note that the New Taiwan Dollar is different from the Chinese Renminbi (RMB or CNY), which is the official currency of the People's Republic of China. While both currencies are used in the Greater China region, they are issued and managed by separate central banks and are not interchangeable.