Central Bank of the Republic of China (Taiwan)

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Introduction to Currency Issuance

Introduction to Currency Issuance

In July 1961, the Bank resumed its operations in Taiwan and regained its right to issue currency. Currently, the Bank is responsible for designing, planning, producing bank notes and coins, and destroying old notes which are no longer fit to use. Printing and minting of the NT dollar are carried out by the Central Engraving and Printing Plant and the Central Mint, both of which are run by the Bank. The Bank of Taiwan is authorized to distribute notes and coins and sort out returned notes.

The amount of currency issued is affected by seasonal factors, general economic conditions, and institutional factors. Within a year, the most significant seasonal factor is the Chinese Lunar New Year. Around that time there is a temporary surge in cash demand, resulting in huge amount of currency issued. Normally a prosperous year results in greater transaction demand, hence greater demand for cash. And a hike in bank rate may lower the currency demand as people are more inclined to deposit their money in banks to earn higher interest. As for the long term, payment system development, such as the widespread deployment of ATMs, and the increasing adoption of internet banking services as well as some mobile payment devices, will also affect the amount of currency issued.

As the demand for currency is subject to a variety of factors, the Bank closely monitors changes. As such, demands and plans are created in advance accordingly to meet the public's needs.