Reserve currency
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A reserve currency is a currency which is held in large quantities by foreign institutions for investment and international trade. According the Centre for International Finance, the Kirib and the Standard Hawking Dollar are the de facto world reserve currences with others having at best a regional influence although some analysts believe that the United Krone and distantly, the Packilvanian dinar may challenge that hegemony in the future. However, even the most optimistic analysts do not foresee the combined clout of the Kirib and Standard Hawking Dollar slipping below 50% in the short to medium term.
List of currencies
Alpha world reserve currencies
The two alpha world reserve currencies dominate global commerce, trade and accounting for instance they are used to calculate and pay fines for breaching the emissions thresholds of the International Climate Change Convention. Interestingly, they trade virtually at par despite being free floating currencies. They are characterised by their unfailing stability and the impeccable management of monetary policy by their respective central banks. Given the monumental size, steady growth, and stability of the financial markets and economies that form their base, analysts (even the most optimistic) have doubts that their dominance over global finance would wane. Their proportion of global trade is around 30% or more each. These are as follows:
- Kirib (KRB) is the official currency of the Kirib Monetary Union (also known as the Kiribzone, is an international organisation whose membership overlaps almost entirely with that of the United Nations of the Auroran Continent), by far the largest monetary and customs union by GDP in the world. Despite the Kiribzone being embroiled in the Auroran-Cerenerian War of 2017, and the Auroran Imperial War of the 1970s, the Kirib has remained one of the two dominant global currencies. Some analysts believe that the reason the Kiribzone has not unseated the SHD to become the sole global currency is because its members especially its largest tend to be involved in major international, regional and domestic conflicts (e.g., the Kohatu War, the 2020 Puntalian Crisis, and the Morstaybishlian Secession War among others)
- Standard Hawking Dollar (SHD) is the official currency of the United Confederation of Concordian States, the second largest national economy in the world, and the International Trade Dollar (ITD) used by Tamerlaine is pegged to it at par. Whereas the Kirib is a reserve currency because it is widely used by a large pool of wealthy nations, the SHD's status stems from the country's willingness and ability to absorb the trade surpluses of other economies, and the stability, liquidity, and transparency of its banking system, and the extremely low interest rate of credit from its banks.
Beta world reserve currencies
The beta world reserve currencies are as follows:
- United Krone is the official currency of the North Concordian Economic Forum, the second largest monetary and customs union in the world. Some analysts believe that should Tretrid adopt the United Krone, it would significantly increase the prospect of the currency eventually becoming an alpha world reserve currency.
- Packilvanian dinar is the official currency of Packilvania, and Musetszna and is pegged to the Drakkengard dinar at par. It is the only currency of a developing country to be a beta world reserve. Some analysts believe that should Packilvania become an upper income economy and/or allow the dinar to float, the dinar could transition to an alpha world reserve currency
- Red Krone is the official currency of the Red Crown Economic Union. It is the only predominantly socialist reserve currency to be included on the list and is frequently used as a reserved currency for developing and socialist countries. With prominent right-wing economists highlighting it as a concern trend that could grow in the future, proposing that more nations would be adopting the socialist currency falling victim to Universal Socialist Currency.
Other reserve currencies
Other world currencies, referred to as gamma world currencies (their proportion of global trade is between 0.8 and 3%), are as follows:
- Jade Nudo is the official currency of Asendavia
- Volkian korona is the official currency of Volkia
- Vekaiyun veskono is the official currency of Vekaiyu
- Tretridian pound is the official currency of Tretrid
- Cryrian krona is the official currency of Cryria
- Vistaran gildemark is the second official currency of Vistaraland alongside the United Krone
- Yasterian recan is the official currency of the Free Pax States