1 Fen / Cent

The Bank of Taiwan's 1954 fen series was issued during a period of acute monetary instability following the 1949 currency reform, when the New Taiwan Dollar was introduced at a conversion rate of 40,000 old Taiwan dollars to one new — a ratio that reflected the severity of the hyperinflationary collapse on the mainland and its spillover effects on the island's economy.

The Central Engraving and Printing Factory in Taipei had only recently established full domestic production capacity, having relocated from the mainland. At this denomination, notes were essentially tokens, and low-face-value pieces from this run are frequently found with heavy handling wear.