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by The Greater Bohemian Union » Mon Mar 13, 2017 4:04 pm
by FreYhill » Mon Mar 13, 2017 5:40 pm
by Korizland » Mon Mar 13, 2017 6:26 pm
by Katranjiev » Mon Mar 13, 2017 9:43 pm
Financial Exchange Mechanism Act
Preamble
In light of the growing expansion of the Esquarian Community over the past year;
Noting that with the integration of the Greenwich Area into the Common Market, it has become easier for persons, goods and services to travel across borders;
Concerned that without some sort of exchange rate mechanism to reduce inequalities among the members of the Common Market, it shall motivate nations to devalue their currencies to increase the value of their exports;
Also wishing to simplify internal accounting processes within the Esquarian Community and to reduce its reliance on the USD;
The Esquarian Community hereby enacts the following provisions:
EC Exchange MechanismEsquarian Currency Unit
- Establishes the EC Exchange Mechanism, hereafter referred to as the ECEM
- Defines the ECEM as a currency basket of all currencies of member states within both the Esquarian Community and the Common Market
- Calculates the exchange rates between all currencies within the Esquarian Union via:
- Calculating the average value of all currencies within the Common Market relative to the NSD to create the raw exchange rate
- Calculating the share of each country to the total gross domestic product of the entire Common Market
- Assigning weights to the raw exchange rate, so to ensure that the exchange rate is not severely overvalued or undervalued relative to the country's economic share within the Common Market, creating the official rate to the NSD
- Permits exchange rates of all ECEM currencies to fluctuate in a 12% band, hereafter referred to as the ECEM band, from +6% above the official rate to -6% below said rate
- Permits countries in the Esquarian Community and the Common Market to suspend its participation within the ECEM system if the exchange rate between their currency and the NSD becomes seriously undervalued compared to what would be if they were not part of the ECEM in the first place
- If they desire to opt out of the ECEM system via this section, they must request the Secretariat to suspend their participation in the ECEM system based on that criteria
- If the request is granted, the nation shall not participate in the ECEM system until the nation's currency has become overvalued
- When the currency becomes overvalued compared to the exchange rate, the nation shall participate in ECEM again
Application
- Establishes the Esquarian Currency Unit, hereafter referred to as ECU:
- Defines one ECU as:
- having the value of the official rate of the ECEM to the NSD
- being an internal unit of account within the EC
- The ECU should be adopted by all EC institutions by no later than January 1, 2018 for all purposes
- The ECEM system shall be phased in between January 1, 2018 and January 1, 2020; during this time:
- All currencies must begin to apply the ECEM band to their currency, and prevent their currencies from rising above +6% or falling below -6% from their exchange rate as of December 31st, 2017, but they are still permitted to float or maintain their existing pegs
- Refusal to implement the band during the transition period shall result in a 2.5% penalty that shall be added on top of their member fees
- On January 1, 2020, all currencies within the ECEM system shall adopt the official exchange rate between their currency and all other currencies, but from that day on can increase or decrease their value within that band
- Declares that the ECU and the ECEM mechanism shall be administered by the Treasury of the Esquarian Community
by Montecara » Mon Mar 13, 2017 9:57 pm
Esquarian Community Internal Account Act
Preamble
The Esquarian Community,
Wishing to simplify internal accounting processes within the Esquarian Community;
Committed to reducing unnecessary expenditures and using its fiscal resources effectively;
Recognizing the value of enhanced cooperation in monetary affairs;
Therefore enacts as follows:
Esquarian Currency Basket
- The Esquarian Currency Basket (ECB) is hereby established.
- The ECB is defined as a basket of currencies of all nations in the Esquarian Common Market, with its value calculated as follows:
- Taking the average value of all currencies in the Common Market relative to the NSD to create the raw exchange rate;
- Calculating the proportion of each country's gross national product to the gross internal product of the entire Common Market;
- Assigning weights to the raw exchange rate based on the aforementioned proportion.
- The ECB will be administered by the Esquarian Secretariat under the program of the Esquarian Common Market.
Esquarian Currency Unit
- The Esquarian Currency Unit (ECU) is hereby established.
- The ECU is defined as a unit of currency having the value of the rate of the ECB to the NSD.
- The ECU will be used by the Esquarian Community as a unit of account.
- The ECU will be adopted by all Institutions by no later than 1 January 2018.
by Korizland » Tue Mar 14, 2017 5:15 am
by Katranjiev » Tue Mar 14, 2017 7:20 am
by Luziyca » Tue Mar 14, 2017 7:22 am
by Ainin » Mon Mar 20, 2017 7:50 am
by Luziyca » Mon Mar 20, 2017 8:13 am
by United Provinces of Atlantica » Mon Mar 20, 2017 8:16 am
by Pavonistade » Mon Mar 20, 2017 11:13 am
by FreYhill » Mon Mar 20, 2017 1:46 pm
by Luziyca » Fri Mar 24, 2017 7:23 am
by Lanos » Sat Mar 25, 2017 1:15 am
by FreYhill » Sat Mar 25, 2017 1:34 am
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