1 Yuan Matsu

The Matsu notes — distinguished from the concurrent Taiwan mainland-circulating series by a distinct overprint — were issued for use on the Matsu Islands, the Kinmen (Quemoy) archipelago's northwestern neighbor and one of the last offshore territories held by the Republic of China government after its 1949 retreat. Restricting currency to specific island zones was a deliberate policy to prevent notes from flowing into mainland Communist-controlled areas or being exploited to fund infiltration operations.

The Central Engraving and Printing Plant had relocated from Shanghai to Taiwan in 1949, reestablishing production capacity remarkably quickly given the circumstances of that withdrawal.