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| SAFX; Money, money, money! | |
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| Tweet Topic Started: 2 Sep 2015, 17:27 (174 Views) | |
| South America | 2 Sep 2015, 17:27 Post #1 |
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Joven Nación
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SAERM is no more. Say hello to SAFX. SAFX (South American Foreign Exchange) will be the new mechanism dealing with exchange rates between nations in South America. The old SAERM coding became corrupted when Tay's economic calculator stopped depending on in-game data. Therefore, with more realistic economic role-play, a more realistic foreign exchange mechanism was needed. (OOC: Tay has asked me to take over these, using his calculations. This is because he doesn't have time to keep up with exchange rates. Economic reports only take place once/twice yearly. But these rates may be updated as much as every month or two.) Current SAFX rates (02/09/2015): ![]() The Calimeran peso (CAP) is the highest valued currency. This is due to the country being a big importer, therefore making imports cheaper to buy. It's also a sign of the country's central bank keeping inflation low to stimulate the economy. The Valverdean peso (VAP) is the lowest valued currency. This is due to the country being on the "brink of economic collapse". The country relies heavily on exports and a low value currency makes it cheaper to do this. However, it also shows investors have little confidence in the country's central bank. It indicates inflation is high in the country. |
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| Valverde MLA | 2 Sep 2015, 22:25 Post #2 |
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Banana Republic
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Anyone want to buy Valverde!?
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| New Catalonia | 8 Sep 2015, 22:13 Post #3 |
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Nación en Crecimiento
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This is really great. But I have to ask: does the value of the currencies (e.g. NCP) effect the denominations on the coins and bills? So if there is $10 = 56,67 pessetes does that make my equivalent $10-bill a ~50 pessetes-bill? |
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| Neragua | 10 Sep 2015, 10:31 Post #4 |
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Nación Extraordinaria
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Not necessarily, as it depends more on relative costs and values in your country. Modern banknotes are printed in denominations that will require the least change. So you can pay £10 for something that costs £9.50, etc. Consider this: the smallest denomination on an Indian banknote is 1 rupee which is roughly equal in value to 7 cents (USD). That's because costs and values are low enough there to warrant it. Based on Tay's economic data, New Catalonia is a firm middle-income economy, comparable to many RL South American countries. Therefore, it's unlikely the NCP banknotes would be issued for 1 pesseta (roughly equal to 18 cents USD) because people earn a lot more than that and prices will be a lot higher than that for goods and services. However, in Valverde, for example, the cost and values there will justify the printing of, say, a 2 peso banknote, even though that's only equal to roughly 6 cents USD because people will earn less and prices will be lower. If the economy grew substantially and living standards grew with it, priced would go up and justify higher denominations on banknotes, etc. So in short: look at the strength of your economy and the strength of your currency and base denominations off that. |
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3:13 PM Jul 11