The lowdown on the Taiwan dollar
The New Taiwan dollar became the official currency of Taiwan in June of 1949, replacing the Old Taiwan dollar at the ratio of 40,000 to one New Taiwan dollar. These days, it’s generally just known as the Taiwan dollar, without the ‘new’.
After communism arrived in Beijing in January 1949, China's gold reserve was moved to Taiwan by February of the same year and the government declared that New Taiwan dollars issued by the Bank of Taiwan would become the new currency in circulation. Despite this, the silver yuan remained the legal currency all the way up until July 2000, over 50 years later. However in July, the New Taiwan dollar finally became the legal currency of Taiwan.
A look back at US dollar to Taiwan dollar rates
Looking back over the exchange rate of the Taiwan dollar to the US dollar, it has varied quite significantly since being implemented in 1949. In the 1950s, the exchange rate hovered around 10 TWD to 1 USD, increasing to 40 TWD to 1 USD in the 1960s, and around 25 TWD to 1 USD in 1992.
Over the last 10 years, The Taiwan dollar has continued to vary against the US dollar. It fell in value to around 34 TWD to 1 USD in the aftermath of the 2008 financial crisis, and strengthened to around 28 TWD to 1 USD in June of 2011. As of June 2017, the Taiwan dollar exchanges at around 30 to 1 US dollar.