RIM (Rovens Independent Media)
Release: June 12th, 301 AP.

PIMR government seeks to introduce new currency

The PIMR government of Rovens is seeking to replace the Christianan Crown as
the unofficial currency of Rovens with the Roj (R), the local currency.

The introduction of the Roj has been an effective requisite for independence
though no such clause was added to the motion approved by the UNV, due to the
weight the Rovens economy has placed on the Crown which is in unofficial use.
Millions of Crown circulate in Rovens. The as-yet unapproved Vexillium Bank's
economists say that the Crown in use in Rovens:
(i) Increases the risk of counterfeit monies being printed, thus creating
    inflation in Christiana,
(ii) Decreases the number of Crowns in the Christianan economy, thereby
    effectively decreasing economic growth in Christiana, possibly to the point of
    recession, and
(iii) Further exacerbating the risk of inflation in Christiana as their
    Reserve bank prints new notes to compensate for the notes in Rovens, to deflect
    (ii) becoming a reality.

As the size of the Rovens economy is estimated to be of the order of
C45 billion, less than 10% of the Christianan economy, economists estimate the
possible impact could be as much as 0.2% additional inflation or decreased
growth in a given year.

<tech> Please, before anyone decides to rap me over the knuckles for this
"interference in someone else's domain" - this is the exact problem the US
Reserve Bank system faces every year with the USD being the de facto currency
of numerous nations on earth. </tech>

The second reason the government is considering this move is to further cement
the dissolution of the Pataki Communist State, which currently operates its own
currency, known as the Pataki Roj. Negotiations have seen agreement that a
common currency is required, and that the Roj will have equivalent value to the
Pataki Roj. It is estimated that the Roj will buy 0.1457 Christianan Crowns, or
the Crown buy R6.86, though the government hopes to fix a rate of exchange with
the Crown.

There be the third issue with this currency move: Rovens does not have, nor the
funds to establish, a Rovens Reserve Bank to protect the Roj and maintain the
fixed exchange with the Crown. The PIMR government had apparently pinned hope
on the establishment of the Vexillium Bank, drawing substantial funds from the
bank.

While the government has plans to print and distribute the Roj by August 1st,
an unrealistic timetable as there appears to be substantial work yet to be
done. In the meantime, the Christianan Reserve will pick up the tab.


©RIM, 301 AP.
RIM is a division of the Zeitgeist Corporation.

<TECH>
©Mike Ham, 2001. All rights reserved. No reproduction without, at least, tacit approval. ;-)