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Although the official English word for the currency is Dollar , in Mandarin it is known as '' Yuan '' (as with Chinese Numerals , this character has two forms — an informal form 元 and a formal form 圓 used to prevent alterations and accounting mistakes). Colloquially, it is called a ''kuài'' (塊 lit. piece, Taiwanese : ''kho·''). Subdivisions of a yuan are rarely used, since practically all products on the consumer market are being sold at whole units of yuan. HISTORY OF NEW TAIWAN DOLLAR The New Taiwan dollar was first issued by the Bank of Taiwan in June 15, 1949 to replace the Old Taiwan Dollar at a 40,000-to-1 ratio. The first goal of the New Taiwan dollar was to end the Hyperinflation which had plagued Taiwan and Mainland China due to the Civil War . A few months later, the ROC government under the Kuomintang was defeated by the Chinese Communists and retreated to Taiwan. Even though the Taiwan dollar was the de facto currency of Taiwan, for years the old Chinese Nationalist yuan was still the official national currency of the Republic of China. The Chinese Nationalist Yuan was also known as the '' Fiat Currency '' (法幣) or the ''silver Yuan '' (銀元), even though it was decoupled from the value of silver during World War II. Many older Statute s in ROC Law have Fine s and Fee s denominated in this currency. According to the ''), the exchange rate is fixed at 3 TWD per 1 silver yuan and has never been changed despite decades of inflation. Despite the silver yuan being the primary Legal Tender currency, it was impossible to buy, sell, or use it, so it effectively did not exist to the public. 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 began issuing New Taiwan dollar banknotes directly and the old notes issued by the Bank of Taiwan were taken out of circulation. In the history of the currency the exchange rate as compared to the United States Dollar (USD) has varied from over 40 TWD per 1 USD in the 1960s to about 25 TWD per 1 USD around 1992. The exchange rate has been around 33 TWD per 1 USD in recent years. COINS The Denominations of the Taiwan dollar in circulation are 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 Of China . $0.5 is rare because of its low value. $20 is rare because of the government's lack of willingness to promote it. BANKNOTES SEE ALSO EXTERNAL LINKS
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