WA Reserve Currency Debate

Great Eurussia Thu Jan 15, 2015 11:44 pm

The Eurussian Government suggests to our friends and partners here in the Security Council and around the world to finally and formally discuss and debate the possibility of adopting an international reserve currency.

As such, our citizens have faced a very hard time and processes on exchanging each others' currencies based on our trade performances and different approaches due to a lack of internationally standardized form of global currency exchange. This concern also affects the trade and business opportunities of our companies to be able to compete in the growingly competitive international market. Thus, we suggest to adopt a mechanism.

We wish to hear your views.

Apepistan Fri Jan 16, 2015 12:05 am

I'm against the idea of the nations adopting this instead of their own currency.

However, having an international currency as an exchange tool sounds interesting, but what would set the value of it?

England and Wales Fri Jan 16, 2015 12:21 am

I know im not part of the council but I would use it as my nation has no official currency and we only use it for trade so im game

UnitedStatesOfScouting Fri Jan 16, 2015 12:23 am

Scouting is against any kind of international currency.

New Rhodinia Fri Jan 16, 2015 1:20 am

As much as we'd be interested in seeing an international currency, we still believe that the Denarius has served New Rhodinia well. In addition, a singular currency throughout all nations in the World Alliance would demand more then what it suggests; some nations may have to downgrade their economy and others may have to pull extra strings just to fit the international standard.

Individual currencies haven't caused us trouble as far as we can tell, so we are against this.

Xolox Fri Jan 16, 2015 1:50 am

New Rhodinia wrote:As much as we'd be interested in seeing an international currency, we still believe that the Denarius has served New Rhodinia well. In addition, a singular currency throughout all nations in the World Alliance would demand more then what it suggests; some nations may have to downgrade their economy and others may have to pull extra strings just to fit the international standard.

Individual currencies haven't caused us trouble as far as we can tell, so we are against this.

My thoughts exactly.

Serenarea Fri Jan 16, 2015 7:08 am

We are open to the idea of an international reserve currency depending on what currency the international community would use. If we adopt a individual nation's currency as the reserve currency (i.e. United States) it would give them too much power over the international market and that should be avoided. A currency created by the SC, however, like the Euro, controlled by us, could bring up many possibilities along with the risks.

Muchos Estados Unidos Fri Jan 16, 2015 10:17 am

I am in favor of this because it will make economies stronger and transactions faster. Let us make the United States Dollar the world currency of reserves. This is our currency.

Muchos Estados Unidos Fri Jan 16, 2015 10:21 am

I also don't think this is something to do about changing our national currencies. That is why this is called internationa "RESERVE CURRENCY"

Serenarea Fri Jan 16, 2015 1:54 pm

Muchos Estados Unidos wrote:I am in favor of this because it will make economies stronger and transactions faster. Let us make the United States Dollar the world currency of reserves. This is our currency.

I disagree, if there is to be a reserve currency, it should not be an individual nations currency.

Snarfian Federation Fri Jan 16, 2015 9:59 pm

Snarfia maintains their own currency.

Great Eurussia Sat Jan 17, 2015 11:33 pm

Eurussia believes that if a country, using its national currency during times of economic stability and prosperity, buys a strong foreign currency, such acquisition will become its international reserve currency. And when the time comes that that country's economy is in trouble or in collapse, instead of asking for foreign loans from other nations, it could simply use its international reserves (internationap reserve currency) to fund its government programs avoiding high interest emergency loans from foreign governments.

New Rhodinia Sun Jan 18, 2015 12:27 am

Great Eurussia wrote:
Eurussia believes that if a country, using its national currency during times of economic stability and prosperity, buys a strong foreign currency, such acquisition will become its international reserve currency. And when the time comes that that country's economy is in trouble or in collapse, instead of asking for foreign loans from other nations, it could simply use its international reserves (internationap reserve currency) to fund its government programs avoiding high interest emergency loans from foreign governments.

That is implying that nations only have the one option to take out foreign loans once an economy is slumping. We've proven before that we can improve our economy on our own and without the need of a reserve currency. In addition, what's the game plan for when nations start to rely on the international reserves too much? Wouldn't other nations see this as a form of economic abuse?

UnitedStatesOfScouting Sun Jan 18, 2015 12:55 am

Should this pass, the United States of Scouting will NOT involve itself in this matter.

Muchos Estados Unidos Sun Jan 18, 2015 1:46 am

MEU pushes for US Dollar to become international reserve currency.

Great Eurussia Sun Jan 18, 2015 8:40 am

New Rhodinia wrote:
Great Eurussia wrote:
Eurussia believes that if a country, using its national currency during times of economic stability and prosperity, buys a strong foreign currency, such acquisition will become its international reserve currency. And when the time comes that that country's economy is in trouble or in collapse, instead of asking for foreign loans from other nations, it could simply use its international reserves (internationap reserve currency) to fund its government programs avoiding high interest emergency loans from foreign governments.

That is implying that nations only have the one option to take out foreign loans once an economy is slumping. We've proven before that we can improve our economy on our own and without the need of a reserve currency. In addition, what's the game plan for when nations start to rely on the international reserves too much? Wouldn't other nations see this as a form of economic abuse?

May we know how could having international foreign currency reserves become an economic abuse?

New Rhodinia Sun Jan 18, 2015 9:29 am

Great Eurussia wrote:
New Rhodinia wrote:
Great Eurussia wrote:
Eurussia believes that if a country, using its national currency during times of economic stability and prosperity, buys a strong foreign currency, such acquisition will become its international reserve currency. And when the time comes that that country's economy is in trouble or in collapse, instead of asking for foreign loans from other nations, it could simply use its international reserves (internationap reserve currency) to fund its government programs avoiding high interest emergency loans from foreign governments.

That is implying that nations only have the one option to take out foreign loans once an economy is slumping. We've proven before that we can improve our economy on our own and without the need of a reserve currency. In addition, what's the game plan for when nations start to rely on the international reserves too much? Wouldn't other nations see this as a form of economic abuse?

May we know how could having international foreign currency reserves become an economic abuse?

A nation ignores its own currency and economy overall and instead relies only on the reserves. Essentially, they would rely on other nations to pay for their expenses.

Great Eurussia Tue Jan 20, 2015 12:07 am

New Rhodinia wrote:
Great Eurussia wrote:
New Rhodinia wrote:
Great Eurussia wrote:
Eurussia believes that if a country, using its national currency during times of economic stability and prosperity, buys a strong foreign currency, such acquisition will become its international reserve currency. And when the time comes that that country's economy is in trouble or in collapse, instead of asking for foreign loans from other nations, it could simply use its international reserves (internationap reserve currency) to fund its government programs avoiding high interest emergency loans from foreign governments.

That is implying that nations only have the one option to take out foreign loans once an economy is slumping. We've proven before that we can improve our economy on our own and without the need of a reserve currency. In addition, what's the game plan for when nations start to rely on the international reserves too much? Wouldn't other nations see this as a form of economic abuse?

May we know how could having international foreign currency reserves become an economic abuse?

A nation ignores its own currency and economy overall and instead relies only on the reserves. Essentially, they would rely on other nations to pay for their expenses.

Will you not be forced to ignore your own national currency if your collapsed economy caused your own national currency to lose its value within your own jurisdiction?

And since your country has made its best during times of prosperity to BUY the highly valued and stable international RESERVE currency, will you not use your OWN international reserves to pay for your expenses to revive your own economy and your own national currency?

Or would you simply advice countries not to rely too much on international reserve currency and when you do not have it and your own economy collapses together with your own national currency, would you simply advice them to take foreign loans to revive your own economy and later pay back all those loans with sky rocket interests?

Snarfian Federation Tue Jan 20, 2015 4:45 am

If this passes i recommend to name it the Woala a combination of World Alliance and Koala before we call it after the Chinese yuan or the MEU's dollar

Great Eurussia Wed Jan 21, 2015 9:56 am

Snarfia wrote:If this passes i recommend to name it the Woala a combination of World Alliance and Koala before we call it after the Chinese yuan or the MEU's dollar

Where would its value be based?

Muchos Estados Unidos Wed Jan 21, 2015 2:39 pm

Great Eurussia wrote:
Snarfia wrote:If this passes i recommend to name it the Woala a combination of World Alliance and Koala before we call it after the Chinese yuan or the MEU's dollar

Where would its value be based?

Since your country is the most powerful in this region, I suggest instead to have your currency as an international reserve currency. The US Dollar will be buying your Euros because of your strong economy and make it as our international reserve.

Apepistan Wed Jan 21, 2015 6:57 pm

Muchos Estados Unidos wrote:
Great Eurussia wrote:
Snarfia wrote:If this passes i recommend to name it the Woala a combination of World Alliance and Koala before we call it after the Chinese yuan or the MEU's dollar

Where would its value be based?

Since your country is the most powerful in this region, I suggest instead to have your currency as an international reserve currency. The US Dollar will be buying your Euros because of your strong economy and make it as our international reserve.

I'm honestly starting to question the MEU's international politics ever since the commonwealth with Eurussia.

If we choose an already existing national currency for this, it's basically aiding the possible hegemony of that nation.
If we choose a new currency, it has no value because there is no economy on which its value could be based on.

Great Eurussia Wed Jan 21, 2015 7:40 pm

Muchos Estados Unidos wrote:
Great Eurussia wrote:
Snarfia wrote:If this passes i recommend to name it the Woala a combination of World Alliance and Koala before we call it after the Chinese yuan or the MEU's dollar

Where would its value be based?

Since your country is the most powerful in this region, I suggest instead to have your currency as an international reserve currency. The US Dollar will be buying your Euros because of your strong economy and make it as our international reserve.

Eurussia leaves that decision to the Security Council.

Great Eurussia Wed Jan 21, 2015 7:46 pm

Apepistan wrote:

If we choose an already existing national currency for this, it's basically aiding the possible hegemony of that nation.
If we choose a new currency, it has no value because there is no economy on which its value could be based on.

On the first thing, Eurussia believes that the possibility of hegemony remains a political question and in the first place is not the focus of our discussions, but the global economy alone.

On the second thing, indeed. We may opt to name a new currency and a new global bank to manage the new international reserve currency but we also have to choose an economy on which the new currency will be 'pegged' upon or based upon. A complicated process and as well as financially exhausting to establish but worth it if we wish to.

Or we could simply designate a currency to become an international reserve currency. But this will be less work and less complicated but the same objectives as with the above. In achieving this, we could vote on the best performing currencies in the world.

One way or another, to represent the real life, we need to have an international reserve currency to add another dimension to our roleplaying, which is trade and economy.

Snarfian Federation Thu Jan 22, 2015 3:02 am

Whe should maintain our own currency but accept the reserve currency as a second payment thing which people from other country's can use to pay in you country without having to switch to the foreign currency.

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