Chinese gold yuan

[3]: 6–8  During the Second Sino-Japanese War, Fabi currency was issued in large quantities due to increased fiscal expenditure.

[5]: 159  With no real increase in government inventories gold, foreign currency, such huge issuances led to the extreme inflation.

After the constitutional election in May 1948, Weng Wen-ho became Executive Yuan Head and Wang Yun-five was appointed Minister of Finance and began planning for monetary reform.

At the same time, Chiang arranged for Yu Hongjun, former Minister of Finance and former president of the Central Bank, to also draw up a proposal for currency reform.

On August 19, 1948, the Chinese Kuomintang convened a Central Political Conference to approve the currency reform proposal put forward by Weng Wenho, Wang Yunwu.

Weng Wen-hao held a meeting of the Executive Council that afternoon to discuss and approve the currency reform proposal.

According to the Temporary Provisions against the Communist Rebellion adopted by the First Session of the First National Assembly, Chiang issued a "Financial and Economic Emergency Disposition Order" on August 19, issuing Golden Yuan Bills while stopping the issuance of Fabi; and placing economic control supervisors.

[7] Chiang made a speech calling on his compatriots to follow the decree and embrace the new currency system for the benefit of the nation.

The public and private debts in Fabi currency and North-East Notes were settled in accordance with the above exchange rates.

According to the Measures for the Administration of Foreign Exchange Registration of the People of the Republic of China, foreign exchange assets of the people (including natural persons, legal persons, and other associations) deposited abroad shall be declared and registered with the Central Bank or other designated banks before 1 December.

On 6 September 1948, at the Prime Minister's Memorial Week held at the Central Party Department of the Kuomintang, Chiang Chung-cheng rebuked these leading figures of commercial banks in Shanghai for not complying with the decree to register all their foreign exchange assets (estimated at US$300 million) with the Central Bank, and for wanting to raise US$10 million as a perfunctory measure, and still, as in the past 20 or 30 years, they only loved money, knew only themselves, did not know the people's livelihood, flouted the decree and disregarded the righteousness of the people.

Chiang Ching-kuo's severe "tiger hunting" in Shanghai had slightly gained the people's confidence in the Golden Round.

[3]: 8  In April and May 1949, Nanjing and Shanghai were successively overrun by the Chinese People's Liberation Army, and Communist Party announced the cessation of the circulation of gold vouchers from June.

The rapid devaluation of the Gold yuan and the resulting hyperinflation stem from the government's fiscal and monetary policies.