1935165438+1October 4th, the national government stipulated that the banknotes issued by the central bank, the Bank of China and the Bank of Communications (followed by the Farmers Bank of China) were legal tender, and the circulation of silver was prohibited, and national credit legal tender was issued instead of silver dollar. Silver and silver dollars stored by financial institutions and non-governmental organizations are collected and exchanged by the central bank. At the same time, it is stipulated that the exchange rate of legal tender is 1 yuan, which is equal to 1 shilling 2.5p, and foreign exchange is traded by the central government, China and China, which is the gold standard.