Another (Yet Hopefully Simple) Exchange Rate Idea

[Athretvari]

It’s always bothered me that we can name/set a currency and many of our stats are quoted in that currency, but in reality are all scaled in Standard Monetary Units (SMU), thus resulting in a defacto 1-to-1 exchange rate between all our currencies.

I propose including an Exchange Rate field in user settings. This would allow players to set the number of local currency units that equal 1 SMU, (default setting being 1-to-1). Then on the index scales simply multiply the existing value (now measured in SMU) by the local Exchange Rate to find the scale’s value in local currency. I would also add the option to view the scales in your local currency, if/when you’re viewing the stats of a foreign nationstate.

Example:

If NationA sets “2 ACoins equals 1 SMU”, then an index that currently equals 150 SMU would show as 300 ACoins instead.

If NationB sets “3 Bbucks equals 1 SMU”, then the same index value of 150 SMU for NationB would show up as 450 Bbucks.

I would add a sentence at end of the economic paragraph on each nation’s main page saying, “One (name of local currency) equals (Exchange Rate setting) Standard Monetary Unit(s).” Or vice versa.

EXTRA PLUS:
This info can also be used to calculate simple exchange rates between two countries by simply dividing the second nation’s exchange rate by the first nation’s exchange rate.

LOGIC/MATH/EXAMPLES:
ExchangeRateOfNationA = 2 A$ = 1 SMU,
ExchangeRateOfNationB = 3 B$ = 1 SMU, thus
1 SMU = ExchangeRateOfNationA = ExchangeRateOfNationB, thus
2 A$ = 3 B$.

To find the value of 1 A$ in B$, divide ExchangeRateOfNationB by ExchangeRateOfNationA.
Thus, 1 A$ equals 3/2 B$, or 1 1/2 B$.

To find the value of 1 B$ in A$, divide ExchangeRateOfNationA by ExchangeRateOfNationB.
Thus, 1 B$ equals 2/3 A$.

Basically, when a player is looking at a foreign nation and wishing to know the value in his/her own local currency, then divide the foreign nation’s exchange rate by the player’s exchange rate.

[Bears Armed]

Nice idea! This is a change that I would use if it was introduced, unlike some other suggestions.

[Kenmoria]

This is a great idea had would allow a lot more control over the country's economy. There should be a limit on what the exchange rate could be, to prevent someone having one of their dollars be equivalent to the entire economy of plant Earth.

[Minoa]

This is a great idea had would allow a lot more control over the country's economy. There should be a limit on what the exchange rate could be, to prevent someone having one of their dollars be equivalent to the entire economy of plant Earth.

I do not think changing the exchange rate would do that, but we probably have to adjust to show hyper-inflated or hyper-deflated currencies in standard forms (i.e. we have trillions but we would introduce quadrillion, quintillion, etc) or subunits depending on the situation, if the latter is introduced with it.

[Aclion]

I don't much like the idea of the exchange rate being something you can just set. Real nations have to earn their exchange rates and we should as well.

[Merconitonitopia]

I don't much like the idea of the exchange rate being something you can just set. Real nations have to earn their exchange rates and we should as well.

In such a context it would be mostly cosmetic.

[Queen Yuno]

I like this idea!
My nation has a frightening economy and it'd be fun to use it.

[Athretvari]

I don't much like the idea of the exchange rate being something you can just set. Real nations have to earn their exchange rates and we should as well.

Actually "currency manipulation" is a very common real-world action that countries undertake. China is notorious for it. They set the official exchange rate (range) of yuan/renminbi every day. It's called a controlled currency for that reason. Other, more "open" economies like the USA have "floating exchange rates" set by the market based almost solely on the international demand for that currency. (This would be nearly impossible to replicate here in NS, since we don't track the actual trade between any countries, let alone any 2 countries—vital information needed to calculate a real floating exchange rate between them.)

This proposal allows solely for controlled currency rates. (Mind you all our currencies are currently controlled currencies since they all currently equal 1-to-1.) This proposal doesn't actually make your economy any weaker or stronger. If I set my exchange rate very high, example 100 AiCoins for each NS dollar, all I'm doing is weakening the value of one AiCoin by a factor of a hundred and as a result forcing my central bank to print 100 times more AiCoins to compensate, otherwise I would have massive economic deflation. (Because each AiCoin is suddenly worth only .01 NSD). If I set the rate lower, example .01 AiCoin equals 1 NSD, I'm "strengthening" my currency, but also forcing my central bank to remove AiCoins from circulation, usually via government or treasury bonds, which takes money out of the system and locks it up for a while. (Otherwise, the change would result in immediate hyperinflation.) In the end this proposal evens out completely regardless of which exchange rate you choose, and thus is totally cosmetic, but it does give us that much desired "exchange rate". And solves the issue of showing index values in NSD but labelling them in local currency.