[Draft] Currency Exchange Protocol

[Gaelskraan]

My first resolution. Managed to dig up a a couple of failed currency related resolutions, but most of them pertain to currency exchange taxation, which I have tried to avoid so that can be clarified in a future resolution.

Also, this might be borderline rule-breaking with game mechanics as it creates a currency; however it does not require nations to use it, it's main use is as a comparable index currency - therefore i think it does not change anything about the game as nations can use it if they wish but are not compelled to. Debatable.

Anyhow, please give me feedback on what you think.

"Currency Exchange Protocol"
Category: Free Trade
Strength: Significant
Proposed by: [nation=short]Gaelskraan[/nation]
Description: A resolution to reduce barriers to free trade and commerce.

Argument:
Article I

For the purposes of this resolution, defines:
a) "National Currency" as a medium of payment in general use in a particular country.
b) "Exchange Rate" as the value of one national currency in comparison to another.
c) "NationStates Universal Dollar" (Symbol: NS$ Code: NSUD) as a currency created by this resolution.

Article II

NOTING that many governments and consumers alike are often caught out trying to buy goods and services which they cannot afford because of complicated or ambiguous currency exchange rates.

BELIEVING that international trade is quicker, more efficient and fairer when goods and services are sold at a known value.

REQUIRES that nations publish the exchange rate of their national currency with currencies of the nations they trade with.

DEMANDS nations publish the exchange rate of their national currency with the NationStates Universal Dollar.

COMPELS nations with a free floating or managed floating currencies to officially publish these exchange rates every two days.

NECESSITATES that nations with a currency pegged to the Nationstates Universal Dollar or any other external currency officially publish its national currency’s value at least every 14 days.

RESERVES the right for nations to place taxes on the exchange of its currency, unless future resolutions state otherwise.

HOPING that this will help solve the problem of ambiguous and/or unstable international trade prices which hampers development and economic growth.

Article III

CREATES the NationStates Exchange and Reserve Bank (NERB) to oversee the creation and supply of the NationStates Universal Dollar.

ALLOWS nations to call upon NERB to help them calculate exchange rates.

APPROVES the pegging of the exchange rate of the NationStates Universal Dollar at 1:1 with the world’s average currency value to ensure its stability.

RECOGNISING that some countries have no official currency, or wildly unstable currencies, therefore:

URGES these nations to make the NationStates Standard Dollar be accepted as legal tender in their country.

FURTHER ASSURES all nations that the NationStates Universal Dollar shall not replace any existing currency unless individual governments wish it to do so in their respective nations.

CONCLUDES that international trade shall be easier, stable economic growth shall be more achievable and consumers more confident with the passing of this resolution.

[Paper Flowers]

As we do not recognise this "Nationstates Universal Dollar" as a form of legal tender we will quite happily exchange at a rate of 5 trillion of these NUD things to one Origami, at least if our population get enough of them they might be able to make a fire or something....

Ambassador Saunders

[West Ponderosa]

Since this would be a regulation, wouldn't this limit free trade?

Also, I think Paper Flowers has pointed out a fatal flaw that ruins this proposal altogether.

[The Two Jerseys]

Yeah, I'm pretty sure that creating an international currency is illegal. Also, making compliance with the resolution optional is also illegal.

Besides, there's already the NationStates dollar that's used to determine exchange rates.

[Gaelskraan]

Whilst it does make a regulation, the regulation would, in turn, make trade easier, thus fitting the proposal in this category. Which category would you put it in?

Also, how do you "not recognise" a currency? I can see how you can simply not accept it in shops, but you can't deny it's actual purchasing power elsewhere. It's like trying to buy 1 trillion polish zloties for £5, not gunna happen. Just because shops in America won't accept the Polish Zloty, doesn't mean it has no value.

The currency is optional to own/participate in, but declaring your exchange rates (the main point of the resolution) is not optional so I don't see how the resolution is illegal in that sense.

[Paper Flowers]

Also, how do you "not recognise" a currency?

In the same way that some people still use barter systems or may adopt the leaf as legal tender, however we do not recognise those as such within our nation. Just because someone says something is a form of currency does not mean we have to agree with that assessment.

I can see how you can simply not accept it in shops, but you can't deny it's actual purchasing power elsewhere.

Neither did I claim to, you seem to misunderstand the concept of our refusal to recognise it as currency.

Just because shops in America won't accept the Polish Zloty, doesn't mean it has no value.

Again, the only person making this statement is you.

Ambassador Saunders

[Potted Plants United]

OOC: Forcing roleplay on others via resolutions is forbidden, and the NationStates Dollar and similar international currency constructs only exist for roleplay purposes. Practically only place they're actually used is the global trade forum.

[Gaelskraan]

OOC: Forcing roleplay on others via resolutions is forbidden, and the NationStates Dollar and similar international currency constructs only exist for roleplay purposes. Practically only place they're actually used is the global trade forum.

The rules say nothing about forcing roleplay on people. Besides, no resolution can possibly force roleplay on people. Protecting rainforests and the like are for "roleplay" purposes, it could be argued.

[Flibbleites]

OOC: Forcing roleplay on others via resolutions is forbidden, and the NationStates Dollar and similar international currency constructs only exist for roleplay purposes. Practically only place they're actually used is the global trade forum.

The rules say nothing about forcing roleplay on people.

Actually, they do. It falls under the auspices of Metagaming, specifically the part about requiring activities on the forums.

Besides, no resolution can possibly force roleplay on people.

And actually, this is why the rules prohibit attempts to force RP onto people.

For the record, it might be possible to write a legal international currency proposal, but it's not easy. In fact, Hack once equated the difficulty as akin to attempting to navigate a minefield on a pogo stick, drunk and blindfolded.

[Laeriland]

The rules say nothing about forcing roleplay on people.

Actually, they do. It falls under the auspices of Metagaming, specifically the part about requiring activities on the forums.

Besides, no resolution can possibly force roleplay on people.

And actually, this is why the rules prohibit attempts to force RP onto people.

For the record, it might be possible to write a legal international currency proposal, but it's not easy. In fact, Hack once equated the difficulty as akin to attempting to navigate a minefield on a pogo stick, drunk and blindfolded.

Sounds about right. (referring to how difficult it'd be to write such a proposal)

[Gaelskraan]

I stand corrected then sir. I apologise.

However, I don't understand how would my resolution be specifically requiring people to go on the forums? The resolution tells people to declare their exchange rates but I don't actually expect them to come onto the forums and do it. Many other resolutions state similar things such as putting citizens on trial for various crimes, but they don't have to be roleplayed out, do they?

I'm going to continue my drunken pogo stick escapade and see how far I can get.

[Abacathea]

I stand corrected then sir. I apologise.

However, I don't understand how would my resolution be specifically requiring people to go on the forums? The resolution tells people to declare their exchange rates but I don't actually expect them to come onto the forums and do it. Many other resolutions state similar things such as putting citizens on trial for various crimes, but they don't have to be roleplayed out, do they?

I'm going to continue my drunken pogo stick escapade and see how far I can get.

Given that currency exchange would require the participation of a second/third nation this could only be roleplayed in certain locations, i.e; the forums.

An awful lot of legislate on the books pertains to a nation in the individual sense or internationally but wouldnt actually require the second nation to be in effect. I havent skimmed your proposal in any detail but I suspect this is what my esteemed colleagues are trying to highlight

[Grays Harbor]

I'm going to continue my drunken pogo stick escapade and see how far I can get.

Splendid. Where would you like your remains sent once we gather all the bits after you pogo onto one of the mines?

[Gaelskraan]

Just over there. That'd be grand. Cheers.

I stand corrected then sir. I apologise.

However, I don't understand how would my resolution be specifically requiring people to go on the forums? The resolution tells people to declare their exchange rates but I don't actually expect them to come onto the forums and do it. Many other resolutions state similar things such as putting citizens on trial for various crimes, but they don't have to be roleplayed out, do they?

I'm going to continue my drunken pogo stick escapade and see how far I can get.

Given that currency exchange would require the participation of a second/third nation this could only be roleplayed in certain locations, i.e; the forums.

An awful lot of legislate on the books pertains to a nation in the individual sense or internationally but wouldnt actually require the second nation to be in effect. I havent skimmed your proposal in any detail but I suspect this is what my esteemed colleagues are trying to highlight

My reasoning is that nobody is going to want to use the currency of a nation that does not already Roleplay, and even if they did the second nation need nor actually play out the selling of their currency as we assume that they do this already under normal economic trade.
Trading with an international currency alleviates this problem further as the only participants are the nation exchanging currencies and the WA gnomes at NERB.

Does my proposal in it's current form require the second nation? If it does not, then surely the proposal is legal?

[Grays Harbor]

Which takes us right back to "The WA cannot create a currency" issue.

[Bears Armed]

OOC
The WA cannot create a currency and require that nations adopt it for internal use: The WA can create a currency like this as a basis for comparing exchange rates (IC) and for optional use in international trade... although determining its base value would be verry tricky.
Nothing within this proposal says that the 'USD' that would be created by this proposal is actually the same 'USD' that's already used in RP, and I would therefore argue that this does not require people to recognise any of that RP and is thus not illegal for Meta-gaming. (No, the fact that international trade would involve other nations too doesn't constitute forcing you to RP... otherwise the fact that international warfare has to involve other nations too would mean that proposals on that subject would automatically be illegal for the same reason, which evidently hasn't been considered the case because we have several passed resolutions on warfare-related topics).
The preamble could easily be modified to explain more clearly why establishing such a standard would ease international trade and effectively constitute removing a barrier.
And the optionality about using this currency would almost certainly be 'legal' if the proposal's strength was reduced to 'Mild' and a clause actively urging or encouraging nations to use it in international trade was added.

[Abacathea]

Bears post makes sense actually. Not that I should be as surprised as this seems lol