First, the chaotic monetary system and various currencies in old China still affected the normal circulation and trading of commodities. After the establishment of the Nanjing National Government, in 22 years of the Republic of China, the measures of "changing two yuan into yuan" were implemented, and the silver standard system was established, and the silver dollar was abolished and changed to silver dollar, so that the silver dollar became a unified currency. This has created conditions for the implementation of monetary reform.

Second, an unprecedented economic crisis has occurred in the capitalist world. At that time, the United States abandoned the gold standard in order to pass on the crisis. Due to the US policy of buying silver at a high price, the world silver market price soared, and a large amount of silver flowed out of China, which seriously affected China's economy. In this situation, it is more urgent to stop the outflow of silver and implement the reform of the monetary system.

After the currency reform of 1935, the currency was unified and the chaotic state of China's currency was ended.

(1) Financial stability Although the circulation of paper money has increased, the social reputation of legal tender is still good, because cash reserves are sufficient.

(2) The foreign exchange rate was stable, which was one of the most stable countries in the world at that time.

(3) The price rises, and the production is stimulated and increased.

(4) Promote the development of industrial and agricultural production.

(5) Promoting the development of import and export trade.

To put it simply, due to the monetary reform, monetary credit was restored, so industrial and agricultural production and import and export trade developed, which promoted the circulation and trade of commodities, so prices rose, and the two promoted each other.