The onset of World War II saw a sharp devaluation of the Chinese fǎbì currency. This was largely due to unrestrained issuance of the currency to fund the war effort. After the defeat of Japan and the return of the Kuomintang Central Government, a further reform was instituted in August 1948 in response to hyperinflation. The Gold Yuan Certificate replaced the fǎbì at the rate of 1 Gold Yuan = 3 mi...
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The onset of World War II saw a sharp devaluation of the Chinese fǎbì currency. This was largely due to unrestrained issuance of the currency to fund the war effort. After the defeat of Japan and the return of the Kuomintang Central Government, a further reform was instituted in August 1948 in response to hyperinflation. The Gold Yuan Certificate replaced the fǎbì at the rate of 1 Gold Yuan = 3 million Yuan fǎbì = US$0.25. The Gold Yuan was nominally set at 0.22217g of gold. However, the currency was never actually backed by gold and hyperinflation continued.
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