Kirib: Difference between revisions

During the reign of King [[Galfridus]], electronic lectronic systems emerged that made it easier for people to communicate and usurped the telegram. They had the effect of making banking vastly easier and reducing the dependence on physical currency for large transactions. In 1969, the [[Noroist Axdel|Noroist Republic of Axdel]] seceded from Great Morstaybishlia but continued to unofficially use the 'Axdelian Kirib'. The [[Auroran Imperial War]] was incredibly costly for the Bank of Staynes. Now, it was not individuals and business that would demand gold and silver, but entire governments. The Bank of Staynes dreaded the probability that the Kirib Monetary Union would effectively collapse. Moreover, the member states of the Kirib Monetary Union were on opposing sides of the war. Thus, the Bank of Staynes declared monetary neutrality, protecting the hard currency balances of participating states even if they were not allies of Great Morstaybishlia. This drew a lot of public criticism against the bank both from within Great Morstaybishlia who felt that the Bank of Staynes betrayed them and by foreigners who felt that the Bank of Staynes could be manipulated by the Morstaybishlian government to their detriment. When the war ended, all of Morstaybishlia's enemies were defeated. But it wanted to prevent the collapse that would lead to instability in the KMU. Thus, it was decided that the value of kiribs would no longer be fixed to gold at all - effectively ending the gold standard. Instead, the demand and supply forces on commercial markets would dictate how much it was worth. Moreover, gold and silver as means for transactions were totally banned, relegating them to assets as any other. [[Axdel]], [[Emberwood Coast]], [[North Lyrevale]] and [[Quarts Fern Forest|QuartsQuartz Fern Coast]] formally joined the KMU in 1975, whilst Axdel and South Lyrevale formed their own monetary systems.

The KMU's member states and their successors held a meeting in [[Sani Bursil]] in which the Bank of Staynes ceded control to the newly established [[Auroran Central Bank]] that would sit in that city. This body was an international organisation that controlled the kirib and represented all member states. To prevent the transition from causing turmoil, the ACB regulated the value of the new kirib. This era has lasted to the present day. This era saw many changes to the Kirib. [[Lyrevale]] and [[Quartz Fern Coast|Quarts Fern Coast]] ceased to be members when they were incorporated by [[Axdel]]. The [[Ethalria (Republic)|Republic of Ethalria]] and the [[Ethalria (Matriarchy)|Matriarchy of Ethalria]] joined the kirib in 1975 as the [[Grand Matriarchy of Ethalria]] was dissolved. [[Lyrevale]] and [[Quartz Fern Coast]] ceased to be members when they were incorporated by [[Axdel]], which rejoined in 1999 following financial reform.

*[[Lyrevale]] stopped using the kiribKirib whenafter itthe lost[[Lyrevale itsContinuation independenceWar]] wasand annexedthe byact of federation with Noroist Axdel.

The kiribKirib was linked to precious metal reserves of the Bank of Staynes for most of its history. With the start of the industrialisation of mainland Aurora, this became untenable and thus the kirib became a solely representative currency for precious metal deposits held by the Bank of Staynes. The metal reserve standard was abandoned in the 20th century and the currency became a fiat currency. It adopted a managed float regime during its transition. Following the fading out of the managed float regime, it has been controlled entirely by market forces through the adoption of a free-floating exchange regime. The average exchange rate of the kirib to major world currency has been as follows: