[ NEW DRAFT] International Central Bank and Currency Act

[Vagabundas]

International Central Bank and Currency Act


Category: Free Trade | Strength: Strong
A resolution to reduce barriers to free trade and commerce.

The Word Assembly,

Believing, that commerce and trade of raw materials, manufactured products, stocks, bonds and any kind of good are extremely helpful for our member’s economic development,

Noting, that a standard currency would be useful for any kind of international business and that it would reduce the commercial barriers between our members,

Hereby enacts the following:

Article I. Definitions

Section 1. “Gross Domestic Product (GDP)” is defined as the market value of all final goods and services produced within member states in a year.

Section 2. (I don’t know if it needs more definitions…)

Article II. International Central Bank Responsibilities

Section 1. The International Central Bank (ICB) is created in order to regulate a new global currency and guarantee its full convertibility with all currencies, coins and any means of exchange of member states.

Section 2. The ICB shall accumulate reserves with currencies of all member states and create a Currency Basket based on the percentage of participation on international trading and also the percentage of each member nation on the World’s GDP. It can also purchase highly valued and stable commodities such as Gold and Diamonds.

Section 3. The ICB has not any kind of Monetary Authority. The Central Bank has to follow a Currency Board principle; the amount of International Currency in global markets must follow the level of ICB’s Reserves.

Section 4. As it has no monetary authority, the International Central Bank may not act as a lender of last resort. The ICB can’t lend IS₵s to any government or financial institution.

Article III. The International Standard Currency (IS₵)

Section 1. The International Standard Currency (IS₵) is an alternative international currency that has it value totally pegged with the ICB Reserves’ currencies, means of exchange, coins and commodities.

Section 2. The IS₵ is a unit of exchange and a unit of account for all member states .The International Standard Currency (IS₵) must have a stable value and it will be revaluated by the ICB daily.

Article IV. Member States duties and obligations

Section 1. All member states must accept the IS₵ as a legal currency. Bonds, contracts and any kind of economic operation will be possible with the IS₵. In every member state, consumers may have the option to purchase things with the IS₵.

Section 2. Member States will be able, with ICB’s concession, to use the IS₵ as its single national currency. Those countries will have to follow the same rules of the International Central Bank and may renounce their monetary authority and their exchange authority.

Section 3. All member states are encouraged to own the International Standard Currency units as Foreign Reserves to their Central Banks.

International Currency Act


Category: Free Trade | Strength: Significant
A resolution to reduce barriers to free trade and commerce.

The Word Assembly,

Believing, that commerce and trade of raw materials, manufactured products, stocks, bonds and any kind of good are extremely helpful for our member’s economic development,

Noting, that a standard currency would be useful for any kind of international business and that it would reduce the commerce barriers between our members,

Hereby enacts the following:

Article I. Definitions

Section 1. Gross Domestic Product may be understood as the market value of all final goods and services produced within a country in annual period
.
Section 2. National Central Banks may be considered as a public institution that issues currency, regulates the money supply, and controls the interest rates in a country.

Section 3. Convertibility Level may be understood as the manner that the International Currency may be traded for another national currency or how it can be used in a specific member states.

Section 4. Unity of Account may be understood as a legal mechanism such as virtual currencies, indexes and coins to price goods, bonds, stocks and properties in a member state.

Section 5. Unity of Exchange or Mean of Exchange may be understood as a legal mechanism to price and buy goods, bonds, stocks and properties in a member state.

Section 6. International Exchanging may be considered as any kind of commercial procedure that involves more than one member state.

Article II. International Central Bank Responsibilities

Section 1. The International Central Bank (ICB) is created in order to regulate a new global currency and guarantee its convertibility with all currencies, coins and any official means of exchange of member states.

Section 2. The ICB will be the Central Bank of all central banks and monetary authorities of member states. It’ll be mainly funded by reserve requirements of each member states’ National Central Banks and it will have also funds from the World Assembly General Fund.

Section 3. The ICB shall create a Currency Basket with the accumulated reserves based on the percentage of participation on international trading and also the percentage of each member nation on the World’s GDP. It can also purchase highly valued and stable commodities such as Gold and Diamonds.

Section 4. The ICB has not any kind of Monetary Authority. The Central Bank has to follow a Currency Board principle; the amount of International Currency in global markets must follow the level of ICB’s Reserves.

Section 5. As it has no monetary authority, the International Central Bank may not act as a lender of last resort. The ICB can’t lend IS₵s to any government or financial institution.

Section 6. The ICB shall act as mediator between IS₵ international contract conflicts.

Section 7. The ICB shall create procedures of adoption to the International Standard Currency along member states and it’ll be able to advisor the best approach for each country.

Article III. The International Standard Currency (IS₵)

Section 1. The International Standard Currency (IS₵) is an alternative international currency that has it value totally pegged with the ICB Reserves’ currencies, means of exchange, coins and commodities.

Section 2. The IS₵ is a unit of exchange and a unit of account for all member states with different situations of convertibility .The International Standard Currency (IS₵) must have a stable value and it will be revaluated by the ICB daily.

Article IV. Member States Duties and the Step-by-Step Approach.

Section 1. All member states shall adopt one of the following adaptation steps, with the ICB approval, for the international currency and define the IS₵ convertibility level on their countries:

a) On step one, the International Currency will be a unit of account for all kinds of pricing, government will be allowed to become indebted on the IS₵ with other public institutions as well as they will be able to denominate bonds with the IS₵.

b) On step two, the International Currency shall have it convertibility and usage allowed also for individuals and private-owned legal entities and therefore become a unit of exchange for limited procedures. Each member state’s National Central Bank shall give licenses to those who want to hold IS₵. By this step, the International Currency should be allowed to come into circulation on International Exchanging operations, on Touristic Purpose as well as it could be accepted by Big Companies on retail stores.


c) On step three, the International Currency will have full convertibility with the member state’s national currency. It’ll be a unit of account and a unit of exchange for any types of operations. Wages, bonds, stocks, products, properties, raw materials, bills and loan will be also priced and exchangeable with IS₵. The International Standard Currency will circulate with the national currency.

Section 2. Member States will be able, with ICB’s concession, to use the IS₵ as its single national currency. Those countries will have to follow the same rules of the International Central Bank and may renounce their monetary authority and their exchange authority.

Section 3. All member states’ National Central Banks or governments will be required to partially fund the International Central Bank. The ICB will exchange the reserves of member states with IS₵ certificates.

Article V. Moving Backward and Forward under the Step-by-Step Approach.

Section 1. All member states will be able to move backward or forward on the step-by-step approach and the IS₵ convertibility will be automatically changed.

Section 2. All member states that opt to change their steps across their borders shall decide what is going to be done with the IS₵’s contracts and holders as well as if the IS₵ will be converted into the national currency or not.

Section 3. All member states will be prohibited of changing international contracts IS₵-denominated unless there is an agreement between members states that are involved or unless there is an agreement between private parties involved.

Looking forward to member states support.
Yours,

[Vagabundas]

If you don't like the International Standard Currency (IS₵). I have some other ideas:

IS$-International Standard Dollar- Seems to me too American.

₲- The Globo- Looks like the Eurozone thing, as it ends wiht "-o"

W₳- The World Assembly's Currency - Fits for all just like the International Standard Currency but the ₳ comes from an old Argentinian Currency and its nicer than the ₵.

[Alqania]

"Why? Simply, why? What is the problem with having different currencies?"

[Vagabundas]

"Why? Simply, why? What is the problem with having different currencies?"

Well, no problem at all.

But you must agree that an international currency increases sharply the liquidity in many of our international markets. Creating a new currency that can be used in the hole world will make things much easier for business, tourists and governments.

I'd like to reafirm that this act will not ban any currency and it'll benefit an impressive majority of member states.

[Eternal Yerushalayim]

"Why? Simply, why? What is the problem with having different currencies?"

Well, no problem at all.

But you must agree that an international currency increases sharply the liquidity in many of our international markets. Creating a new currency that can be used in the hole world will make things much easier for business, tourists and governments.

I'd like to reafirm that this act will not ban any currency and it'll benefit an impressive majority of member states.

But would the introduction of a new single currency that can be used throughout the WA sphere cause a sudden and rapid devaluation of member nations' own currencies, possibly benefiting non-member nations such as ourselves at WA members' expense? It would indirectly usurp national sovereignty in the area of monetary policy, since member nations are at the mercy of the ICB.

[Alqania]

"Why? Simply, why? What is the problem with having different currencies?"

Well, no problem at all.

But you must agree that an international currency increases sharply the liquidity in many of our international markets. Creating a new currency that can be used in the hole world will make things much easier for business, tourists and governments.

I'd like to reafirm that this act will not ban any currency and it'll benefit an impressive majority of member states.

"Must I? Is there a problem with liquidity in international markets? Exotic currencies are often seen as a charm rather than a problem by Alqanian tourists - many of them would probably be disappointed if they no longer got to fill their wallets with a currency they have never seen before when going abroad to visit some fascinating country. What is it that would be easier for governments?"

[Vagabundas]

Well, no problem at all.

But you must agree that an international currency increases sharply the liquidity in many of our international markets. Creating a new currency that can be used in the hole world will make things much easier for business, tourists and governments.

I'd like to reafirm that this act will not ban any currency and it'll benefit an impressive majority of member states.

"Must I? Is there a problem with liquidity in international markets? Exotic currencies are often seen as a charm rather than a problem by Alqanian tourists - many of them would probably be disappointed if they no longer got to fill their wallets with a currency they have never seen before when going abroad to visit some fascinating country. What is it that would be easier for governments?"

That is what I'm trying to say... The use of the IS₵ for tourists is not mandatory, what this resolution mandates is that any kind of business have to accept this international currency.

If member states' governments use IS₵-denominated bonds, it can be extreamly benificial for them:
1.Their economic policy will have much more credibility(flat money).
2.As a result of more liquidity, those countries will be able to reduce their interest rates on their treasury bonds, boosting their economies.

[Vagabundas]

Well, no problem at all.

But you must agree that an international currency increases sharply the liquidity in many of our international markets. Creating a new currency that can be used in the hole world will make things much easier for business, tourists and governments.

I'd like to reafirm that this act will not ban any currency and it'll benefit an impressive majority of member states.

But would the introduction of a new single currency that can be used throughout the WA sphere cause a sudden and rapid devaluation of member nations' own currencies, possibly benefiting non-member nations such as ourselves at WA members' expense? It would indirectly usurp national sovereignty in the area of monetary policy, since member nations are at the mercy of the ICB.

Not at all, the ICB will acumulate reserves based on the ammount of each currency in global markets so it won't cause any distortion on the member states economy. You are assuming that people from every member state will run to this international currency but this may not happen. Usually when a regional currency is introduced, economics agents will just change their currency if they see that the International Currency is much stronger than their coins, if this general devaluation of currencies occur, the IS₵ could be limited just for tourist activities, bond markets and international trading (but I'll have to change this resolution).

[Eternal Yerushalayim]

I understand, but we are naturally suspicious of international currencies due to past experiences.

[Vagabundas]

I understand, but we are naturally suspicious of international currencies due to past experiences.

You mean "past experiences"... We are not in real life, in Nationstates things works OK? hehehe

[Eternal Yerushalayim]

I understand, but we are naturally suspicious of international currencies due to past experiences.

You mean "past experiences"... We are not in real life, in Nationstates things works OK? hehehe

Well, our colonies were involved in some similar regional economic schemes before.

[Alqania]

"Must I? Is there a problem with liquidity in international markets? Exotic currencies are often seen as a charm rather than a problem by Alqanian tourists - many of them would probably be disappointed if they no longer got to fill their wallets with a currency they have never seen before when going abroad to visit some fascinating country. What is it that would be easier for governments?"

That is what I'm trying to say... The use of the IS₵ for tourists is not mandatory, what this resolution mandates is that any kind of business have to accept this international currency.

If member states' governments use IS₵-denominated bonds, it can be extreamly benificial for them:
1.Their economic policy will have much more credibility(flat money).
2.As a result of more liquidity, those countries will be able to reduce their interest rates on their treasury bonds, boosting their economies.

"The Queendom is hesitant to mandate that all businesses in our jurisdiction must accept as legal tender anything but the Alqanian Crown. That is why we are asking for clarification on the alleged benefits of doing so.

Flat money? Your Excellency will have to excuse my ignorance, but I am an Ambassador, not an economist. What is flat money? Anyway, the credibility of Her Majesty's economic policy needs no enforcing. There is no problem to solve here.

While I am indeed no economist, I understand that treasury bonds are just one type of many types of bonds issued by governments. They seem rather trivial when discussing a universal currency."

[Devons Island]

(I thought that calling for a "one world currency" was illegal due to the game mechanics rule?)

[Hiriaurtung Arororugul]

This is the worst idea in the entire history of worst ideas.

[Eternal Yerushalayim]

This is the worst idea in the entire history of worst ideas.

"Worst" items cannot be in the plural of their kind.

[Hiriaurtung Arororugul]

This is the worst idea in the entire history of worst ideas.

"Worst" items cannot be in the plural of their kind.

It was an attempt at making a witticism. Thank you for the English lesson.

[Eternal Yerushalayim]

"Worst" items cannot be in the plural of their kind.

It was an attempt at making a witticism. Thank you for the English lesson.

Well, I understand, your Excellency.

[Glen-Rhodes]

Is there any evidence to suggest that all members of the World Assembly meet the criteria for an optimum currency area?

- Dr. B. Castro

[Erendi]

Really don't think an international currency is a good idea and will likely prove disastarous. Just look at the RL situation with Greece. While Erendi is responsible with her finances by covering our expendatures with taxes some nations may need to deflate their currency once in a while and not allowing them to do so may either create a massive economic disruption or require massive bailouts from other nations. Let each nation keep their own currency. It really isn't too hard for visitors to get it exchanged.

[Flibbleites]

(I thought that calling for a "one world currency" was illegal due to the game mechanics rule?)

It's not necessarily illegal, but trying to write one that is legal is like trying to navigate a minefield on a pogo stick while wearing a blindfold and drunk.

[Anderson Cooper]

Queridas e muito amadas Vagabundas,

Why do you even think this would be a good idea, not to speak about the possibility of its practical implementation?

His Majestic Foxness
Anderson Cooper

[Vagabundas]

Queridas e muito amadas Vagabundas,

Why do you even think this would be a good idea, not to speak about the possibility of its practical implementation?

His Majestic Foxness
Anderson Cooper

Dear Anderson Cooper and other countries,

Our Great Finance Minister, Júlio Montenegra, will soon show all the benefits of this optional currency that doesn't prohibit any other currency. My point here is that I'm not mandating that any country use this kind of currency, what I'm saying is that this kind of international coin can be used in every place.

Yours,

[Vagabundas]

Really don't think an international currency is a good idea and will likely prove disastarous. Just look at the RL situation with Greece. While Erendi is responsible with her finances by covering our expendatures with taxes some nations may need to deflate their currency once in a while and not allowing them to do so may either create a massive economic disruption or require massive bailouts from other nations. Let each nation keep their own currency. It really isn't too hard for visitors to get it exchanged.

Are you really talking about the International Standard Currency?
This is not a Giant Eurozone, this is different. I'm not taking over your Economic Policy, actually the ICB will not print money, it is going to use a currency pegged in a giant currency basket.If you take a look at section 4.2: Renouncing monethary authority will only be necessary if the member state wants to have the ISC as its National Currency.

Looking forward to see you soon,

Júlio Montenegra.
Minister of Economy of the C.M.Vagabundas.

[Soviet Canuckistan]

There already is an unofficial international currency which is the NSD or Nation States Dollar

[Urgench]

Even if it could be legal we would oppose this measure absolutely. The notion of an artificially stabilised currency which is revalued daily is an absurdity and nor would it have any useful benefits for the economies of member states.

Additionally the CSKU has a thriving internal currency market and we would emphatically oppose any measure which would pose any kind of threat to that market.


Yours,