The New Taiwan Dollar (NT$, TWD) is the official currency of Taiwan and plays an essential role in both the global economy and the daily lives of millions. Whether you’re a global traveler planning a trip to Taipei, a business professional dealing in international trade, or someone sending money to loved ones in Taiwan, understanding the TWD is crucial.
This guide breaks down everything you need to know about the New Taiwan Dollar—from its history to its role in modern international transactions.
What Is the New Taiwan Dollar (TWD)?
The New Taiwan Dollar (often abbreviated as NT$) is Taiwan’s official currency. Introduced in 1949, it replaced the Old Taiwan Dollar as part of efforts to stabilize inflation after World War II. Overseen by the Central Bank of the Republic of China (Taiwan), this currency has become one of Asia’s important currencies, reflecting the island’s dynamic economy.
The TWD is used in everyday transactions—from paying for bubble tea to major financial dealings. Internationally, it has also gained attention as Taiwan strengthens its role in global trade.
The Importance of the TWD in Global Transactions
Taiwan’s rapidly growing technology sector has solidified its position on the global stage. Companies around the world rely on semiconductor chips and electronics manufactured in Taiwan, making the TWD integral for international business.
For those sending or receiving money to and from Taiwan, understanding the currency’s value relative to your home currency is essential. Remittance providers often help individuals complete seamless transactions involving TWD. Learn more about international money transfer terms here.
Key Facts About the New Taiwan Dollar
- Currency Denominations
The TWD features both coins and bills:
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- Coins come in NT$1, NT$5, NT$10, NT$50
- Bills are available in NT$100, NT$500, NT$1,000, and NT$2,000
- Currency Symbol
The TWD currency symbol is written as NT$.
- Exchange Rates and Values
The TWD’s exchange rate against other currencies can fluctuate, influenced by political, economic, and market shifts. If you’re traveling to Taiwan or involved in currency exchange, discover where to exchange currency securely.
- Central Bank Oversight
The Central Bank of the Republic of China (CBC) manages and regulates the TWD to maintain financial stability.
- Cash vs Digital Payments
Taiwan has rapidly embraced digital wallet technology and mobile payments, though cash remains popular in smaller markets and rural areas.
How to Use the New Taiwan Dollar for International Transactions
Sending Money to Taiwan Safely
Many expats, overseas workers, and individuals send funds to family and friends in Taiwan regularly. When sending money internationally, look for services offering transparent fees and favorable exchange rates. For example, using a money transfer service that highlights security is critical. Explore how to send money internationally safely.
Online Purchases and Trade
Many small-business owners and entrepreneurs trading with Taiwanese suppliers must process payments in TWD. A seamless and secure international payment experience can help expedite these transactions.
Tipping and Spending Etiquette in Taiwan
When traveling in Taiwan, understanding basic monetary customs can enhance your experience. Restaurants, taxis, and street vendors typically do not expect tips. However, in service industries, rounding up the bill as a courtesy is appreciated.
Pro tip: Always carry smaller denominations when exploring bustling night markets like Shilin or Raohe for easy transactions with vendors.
Frequently Asked Questions About the New Taiwan Dollar
1. Is the New Taiwan Dollar widely accepted outside of Taiwan?
Generally, no. While TWD may occasionally be accepted in major financial hubs in Asia, you’ll likely need to exchange your TWD into other currencies for use abroad.
2. Where can I find the best exchange rates for TWD?
To ensure favorable conversion rates and minimize fees, opt for reputable service providers.
3. How can I send money to Taiwan efficiently without high fees?
Modern money transfer services like apps offer accessible, affordable solutions. They typically provide competitive rates for TWD.
4. Is it better to carry cash or use cards while visiting Taiwan?
Both options are viable. However, cash is king for smaller transactions, particularly in street markets and food stalls.
5. How stable is the New Taiwan Dollar?
TWD is generally stable due to Taiwan’s strong economy. That said, its value can be affected by global market trends and Taiwan’s political environment.