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OOC: central banks in your nation

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Sarzonia
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Founded: Mar 22, 2004
Scandinavian Liberal Paradise

OOC: central banks in your nation

Postby Sarzonia » Wed Jun 22, 2022 9:06 am

In real life, almost every country has a central authority, often called a central bank, that is responsible for overseeing "economic and monetary policies and to ensure the financial system remains stable," according to Investopedia. The United States calls its central banking system the Federal Reserve. Canada's is called the Bank of Canada (which is not to be confused with the Royal Bank of Canada or the National Bank of Canada).

To continue the example in the United States, Bank of America is not a central bank that establishes financial policy. It's a regular bank that has branches, ATMs, and other tools typically associated with a bank where you can hold an account. Even more confusing, there's another such bank in the United States that's actually named Central Bank even though it's not a central bank in the sense of an institution that establishes monetary policy.

What are the names of your respective nations' central banks? Are there certain peculiarities about your NS nation's financial system?

For an example, Sarzonia's central bank's full formal name is The Central Bank of The Incorporated States. The "short formal" name is The Bank of The Incorporated States, but news outlets in Sarzonia refer to it as "the central bank" on second and subsequent references. For example, "The Bank of The Incorporated States announced an interest rate hike of 0.25 percent, increasing to 0.75 percent in an effort to slow a rapid increase in inflation. The central bank made this announcement after its quarterly meeting in Woodstock." Meanwhile, Bank of Sarzonia is merely a branch bank in the same vein that Bank of America is the same sort of bank in real life.
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New Visayan Islands
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Founded: Jan 31, 2017
Inoffensive Centrist Democracy

Postby New Visayan Islands » Wed Jun 22, 2022 9:11 am

This thread has been moved from NationStates to Factbooks and National Information. Carry on.

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Rho Ophiuchi
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Posts: 86
Founded: Apr 26, 2021
Benevolent Dictatorship

Postby Rho Ophiuchi » Wed Jun 22, 2022 9:35 am

Hello All,

Rho Ophiuchi's financial system is definitely an interesting one. There is no central bank to speak of, and the government only has extremely loose and indirect control over the official currency of the country, the kilogram of iron equivalent, or kgFeEq., as it is usually abbreviated.

This is largely due to the history of the kgFeEq. - when Rho Ophiuchi was founded in 1963 by the Rho Ophiuchian Steel & Oil corporation, it had an economy that was almost entirely based on the export of steel. As such, Rho Ophiuchian Steel & Oil, in an effort to reduce operating costs, used their main product, refined iron, as backing for a representative company currency that they used to pay employees. When the rest of Rho Ohpiuchi grew around this corporation as time passed, even though multiple other company currencies were also used, the kgFeEq. was generally the one considered "most legitimate" by outside agents, due to both how imporant and large Rho Ohpiuchian Steel & Oil was, and its status as representative currency, instead of fiat currency.

In the 1993 re-organization of the government (or creation of, defending on who is being asked), the nation moved from an anarcho-capitalist model to a model more similar to a plutocratic oligarchy controlled by major corporations. In an interest to help the efficiency of the nation's financial markets, this new government legitimized the kgFeEq. as the country's national currency quite early on, on the condition that Rho Ophiuchian Steel & Oil continued their policy of freely exchanging the currency and their low-quality iron, and did not go out of business. However, the government did not give itself the power to print more of the currency (as doing so would destroy its value as representative money), or set interest rates (as the banks were given freedom to set their own).

As such, the government would not have a central bank from then on, with the only control of the currency being done through the secondary effects of government subsidies of certain industries. For example, a subsidy to Rho Ophiuchian Steel & Oil would decrease the currency's value slightly due to a raise in the supply, while one to Hyperindustrial Motors might raise the currency's value slightly, due to increased demand.
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Awesome Imperium
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Founded: Feb 04, 2021
Democratic Socialists

Postby Awesome Imperium » Wed Jun 22, 2022 9:45 am

The Central Bank in the Imperium is the Iris reserve bank or IRS for short Its under the jurisdiction of the Department of Finance and is the new reserve bank after we replaced the IRS imperial rupee with the Iris. The headquarters is in the second-largest skyscraper in downtown Amitopia and has branches in Sydney, Nairobi, Addis Ababa, Singapore, Manila, Baguio, and Jakarta. Currently, the major denominations are 1, 4, 7, 12, 24, and 48 Iris denomination bills. In terms of coinage, we have as listed in value the Aurum, Argentum, Denarii, sesterce, Golden drachma, platinum drachma and the silver drachma. All bills have multiple security features to identify and track them such as ink a special film printed on them to track them and a QR-like printing on them by the signature of the minister. The bank tracks all transactions and money transfers which in turn also helps us curb crime and black money. The central bank is moderately independent but also has some government regulations. For example, the bank needs approval from the government to raise interest rates. The bank is also one of the government institutions that hold government assets like state-owned companies and monetary assets and also regulates debt and government bonds.
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Thermodolia
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Founded: Oct 07, 2011
Inoffensive Centrist Democracy

Postby Thermodolia » Wed Jun 22, 2022 7:15 pm

The Thermodolian central bank is known as the Thermodolian National Bank.

Unlike many central bank systems the Thermodolian National Bank doesn’t have a major degree of independence from the federal government.

Per the Central Bank Act of 1931 the president appoints the half of the board while the Minister of the Treasury appoints the other half and the Governor of the Bank, the Senate must approve of all appointments. Furthermore the bank only has the authority to set its own goals and rates, a general budget is approved for the bank each year but there is no mandate as to how that money must be spent.

Recently the Thermodolian National Bank raised rates by .5% which puts the current rate in Thermodolia at 1%
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Tangatarehua
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Founded: Sep 22, 2021
Mother Knows Best State

Postby Tangatarehua » Thu Jun 23, 2022 10:26 pm

The central bank of Tangatarehua is the Rahui Emepaea (Imperial Reserve) which was first formed in 1871.

Prior to 1871, Tangatarehua had various currencies which were issued by the Kaitiaki (Guardians/Feudal lords) of various Iwi whenua (Prefectures), with no unified national currency. The Rahui Emepaea was formed by an Act of Parliament, the final part of the Aringa Reforms that began in 1835 to give Tangatarehua a western-style constitution and government.

The Rahuia Emepaea is half owned by the 21 Kaitiaki, who each have an equal stake in 50% of the bank while the other 50% is owned by the Imperial Family. Since 1871, it has held the sole ability to issue currency with the Kohatu becoming the first national currency.

There have been reforms to governing legislation since its formation. In 1933, Parliament took control of the ability to set interest rates before returning them to the bank in 1985. Since 1985, the bank has been bound by 'inflation targets' set by Parliament every three years and must ensure monetary policy keeps inflation below the level prescribed by the Parliament of the day. In 2016 the law was amended so that the bank would have to consider and balance both unemployment levels and inflation when considering monetary policy.
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Carmini
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Founded: Sep 28, 2015
Compulsory Consumerist State

Postby Carmini » Fri Jun 24, 2022 4:02 am

The Royal Bank of Carmini is the central bank of the Royal City-State. Operated as a private limited company wholly owned by the House of Rose, the Royal Bank has general responsibility for implementing monetary policy, including:

  • A monopoly on the issue of Carmini's currency, the carin (Ȼ).
  • A responsibility for setting national interest rates, following the guidance of the Council of Regents.
  • Holding and investing certain state-owned assets and capital.
  • Custody of the national gold reserves.
The Royal Bank is not a customer-facing bank and has no branches, however it does have some international-level banking services, which form part of its mandate of reinvesting state capital. Employees of the Royal Bank are also offered bespoke, internal-only banking services as part of their remuneration package, which generally feature superior services to high street banks. The Royal Bank is a significant stakeholder in various private pension schemes too, from which it derives a considerable income.

While the private limited company is owned by the royal family, it is a myth that the Royal Bank handles the House of Rose's private finances. It is independent from the monarch's personal wealth, and strictly deals with state finances and fiscal policy.
Last edited by Carmini on Fri Jun 24, 2022 4:03 am, edited 3 times in total.

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Batea del Nord
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Founded: Dec 07, 2015
New York Times Democracy

Postby Batea del Nord » Fri Jun 24, 2022 4:24 pm

The BCBN are the acronym of the Northern Batman National Bank.

The Governador is Choosen by the executive for a 5 year període. And, is fiscalized by the Parliament.

BCNB was established by the Constitution of Batea del Nord.
BCBN together with BCBS (central bank of South Batea) mantain the Batean dollar value.
It holds the national reserves of hard currency.and precious materials.
It's main responsibilities are maintaining the stability of the national currency, the Batean dolar, and ensuring general financial liquidity within the country.
It's the key element of monetarian policy, to allow economic growth and Controlling inflation. Like fixing the rate of interest and Controlling the amount of cash in the economy. Buying or selling public debt for example.
The BCNB also prints: Coins, bank notes, stamps and and official timbers, etc.
In performing its duties BCNB acts as an independent institution responsible to the Parliament.
And, controls commercial banks liquidity.

BCNB acts in accordance with Law on the Northern Batean National Bank.

We also have relation with ECB as We are a Euro Candidate nation.
Last edited by Batea del Nord on Sat Jun 25, 2022 12:31 am, edited 1 time in total.


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