Foreign Exchange Guide to Taiwan
In this guide we review :
- New Taiwan dollar info - general info about the New Taiwan dollar
- New Taiwan dollar in the markets - recent TWD moves and predictions from the FX markets
- Travelling in Taiwan - currency & money saving tips
- Buying New Taiwan dollar cash online - travel money for Taiwan
- Sending money to Taiwan - save on New Taiwan dollar bank transfers to Taiwan
- New Taiwan dollar exchange rates - latest info & charts.
New Taiwan dollar (TWD) general currency information
One Taiwan dollar is subdivided into 100 cents. Conveniently, when shopping in Taiwan, cents are rarely needed because virtually all products sold in the country are priced in whole dollars.
The official name of Taiwan’s currency is the ‘New Taiwan Dollar’, although the prefix ‘New’, which distinguishes the current currency from the original Taiwan dollar used in and prior to 1949, is used only in very formal settings, such as in legal contracts.
Taiwan’s central bank, the Central Bank of the Republic of China (Taiwan), operate a flexible exchange rate system, which means that the Taiwan dollar’s valuation is, for the most part, determined by market forces. The bank’s policy does state, however, that they will intervene in foreign exchange markets “when the market is disrupted by seasonal or irregular factors.”
Historically, the US dollar to Taiwan dollar exchange rate has met strong resistance at 35.0. Several times since the late 1990s USD/TWD has reached close to, or slightly breached, the 35.0 level, but each time the rate has reversed strongly.
Since 1990, the Taiwan dollar’s absolute lowest valuation came in March 2009 when USD/TWD reached 35.24. The currency was strongest in July 1992 when USD/TWD fell to just 24.50.
New Taiwan dollar (TWD) in the markets
2017 was a good year for the Taiwan dollar.
Against the US dollar, an explosive first quarter and a solid fourth made up for a lack of TWD movement throughout the middle of the year. When all was said and done, TWD had appreciated 9.4% against the greenback. In early January 2018, TWD appreciated to 29.5 per US dollar for the first time since 2013.
Against the Japanese yen, TWD was contained in 2017 by the 3.8 resistance level. This was finally broken in the first week of January as TWD/JPY climbed to a 28-month high of 3.84.
Against a very strong euro, TWD lost only 4.6% of its value in 2017.
TWD benefitted in 2017 from broad US dollar weakness, and later in the year from technical factors (on daily charts, the break of an important triangle formation), a pickup in Taiwanese inflation and from money pouring into Asian equities and other assets. TWD sentiment was further boosted in late December when the deputy governor of Taiwan’s central bank suggested that TWD’s recent appreciation was not too big in comparison with the currencies of other regional exporters, thereby easing concerns that the bank might step in to weaken TWD in order to preserve export competitiveness.
Taiwan currency and money saving tips
Taiwan has two major cities, Taipei and Kaohsiung, and getting around them is easy due to their 'Mass Rapid Transit' (MRT) metro systems. They are reliable, efficient, and comfortable. All signs and ticket machines are in English, as are many signs in the stations which show directions to nearby sights. The are many signs also showing bus transfer routes.You can use the metro systems websites for excellent information and maps.
The currency in Taiwan is the New Taiwan Dollar (TWD or NT/NTD). It is the only currency that can be used in Taiwan, all others will not be accepted except in some duty-free shops. Something to warned about is that most credits cards are often not accepted and many places in Taiwan. By a rule unless the place you are trying to use you card is an international chain or a very large restaurant or store, cards wont be accepted. Those that do will charge a 10% fee. As in most countries normal street vendors or night markets wont accept cards. So be sure to get some cash at the airport. It is usually possible to exchange major currencies into TWD at banks in Taiwan, many hotels and department stores do as well but usually at a worse rate. So you usually don't need to worry about how to exchange money.When leaving Taiwan keep in mind that not all bank elsewhere in the world will exchange TWD, so if you dont want to get stuck with lots of useless TWD bills when you leave be sure to exchange your TWD into other currencies before leaving the airport.
Getting around Taiwan, if you want to budget then bus. The bus network runs 24 hours a day and offer comfortable routes between most cities. Taiwan also has a high speed bullet train, one of the fastest in the world, between Taipei and Kaohsiung which travels at 300km/hour. Other trains go most places, cities and villages, and offer a convenient and comfortable journey. Flights are available but considering how efficient and cheaper the train system is, to some the extra price may seem unecassary, Unless of course you are going to one of the islands.
Taiwan Trip Checklist
Travel money for Taiwan
Save money and time by Ordering your New Taiwan dollar online from Travelex, you get better rates and can pick up the TWD cash locally or even on travel day at the airport.
Another popular option is to use a Pre-paid Travel Card. Your Debit/Credit Card provider will charge you 2% from market mid-rate, but your bank may also charge an extra 3% as an “Overseas Transaction Charge” plus “Overseas ATM” fees for withdrawing cash.
For card purchases if offered a choice of currencies always select to Pay in New Taiwan dollar otherwise you may get much worst exchange rates.
Sending money to Taiwan
When sending money to Taiwan it’s important to compare your bank’s rates & fees with those we have negotiated with our partner money transfer providers. To get a better deal you should follow these 3 simple steps :
- Open an account with a BER reviewed FX provider (id docs may be required)
- You specify the local or New Taiwan dollar amount you want to transfer
- Make a local currency domestic transfer for the requested amount to the provider's bank account in your country
- Once your funds are received by the provider the converted TWD amount will be transfered to the recipient account you specify in Taiwan.
By comparing the rates of FX specialist providers rates versus your bank's standard rates you can hopefully save around 5% and maybe more - end result is more New Taiwan dollar deposited into the recipient bank account in Taiwan and less margins and fees kept by the banks!