Gold Reserve Moved to Taiwan

The transfer of the gold reserve from the Chinese mainland to Taiwan was a crucial financial maneuver undertaken by the Kuomintang (KMT) government. This action was primarily aimed at stabilizing the newly introduced New Taiwan dollar, which faced severe inflationary pressures. The KMT recognized that a solid gold reserve was essential for instilling confidence in the new currency and preventing hyperinflation, which had plagued the economy. By moving the gold reserves, the KMT sought to create a more stable economic environment in Taiwan, which was vital for the island's recovery and development following the upheaval of the Chinese Civil War. The gold reserve played a significant role in backing the New Taiwan dollar, allowing it to gain legitimacy and stability in the eyes of both domestic and international markets.