[Law] The Monetary Act (S.A.73)

[MNT_Plovdiv 342]

The United Provinces of Dùnrath
Roinnean Aonaichte Dhùnrath
Förenade Provinserna Ratteborg

The Monetary Act (73 S.A.)
Achd an Airgid (73 D.L.)
Den monetära lagen (30 E.E.)

 

Preamble
The Monetary Act (Also known as ‘this act’ in the following paragraphs of this document) is drafted and enforced by the Grand Governor of the United Provinces of Dùnrath as an executive order, in hope to standardise the currency of the United Provinces, as Dùnrath has historically been using Agnethe currencies instead of having its own independent means of payment. This also set up regulations to the currency in order to ensure its legitimacy and stability of the Rathonian economy.

 

1    Central Bank
The Bank of Sutherland ([OT] Banca Cataibh, [SV] Sutherlands Banken) shall be the central bank, and a public authority of the United Provinces of Dùnrath, under the Grand Governor and the Grand Governor’s Cabinet. Bank of Sutherland can only conduct monetary actions under Rathonian Law, or if it is not specified in this act, the authorisation from the Grand Governor and the Grand Governor’s Cabinet.
 

2    Right of Issuing Currency
The Central Bank is the only authority that is allowed to issue the Rathonian Official Currency. They can only issue currency according to this Act.

 

3    Official Currency
The Rathonian Agra ([OT] Agra Rathanach, [SV] Ratteborgs Agra) is the Official Currency starting from Year 75 of the Second Age. The current de facto official currency of Agnethe Deàrachean are authorised by this act, and the Grand Governor of Dùnrath to circulate until Year 76 of the Second Age. The Rathonian Agra can be exchanged with the Agnethe Deàrachean at a rate of one Agra to one Deàrachean until the last day of Year 76 of the Second Age.

 

4    Recognition of the Official Currency
The Rathonian Agra shall be the official currency of all provinces of Dùnrath, of which includes Osmonde, Norraberget, South Dunbar, Vestlandet, Gräns (Including the Lairdship of Grenzstadt) and the capital region of Dun’avi. Rathonian Agra shall be payable only at the head office of the Central Bank unless expressly made payable also at some other place.

 

5    Recognition from the Rathonian Government
All Rathonian public authorities shall recognise the official currency of Dùnrath. Hence the followings show the recognition of the official currency from the Rathonian Government, Rathonian Agra can be used to:
a)    Pay public and private debt to the Rathonian Government. Including taxation and fees.
b)    Be paid to employees working in the public sector as salary and wages.
c)    Be used to purchase goods, properties, and services from the public sector.
d)    Be traded in the financial market as assets.
e)    Be used as medium of exchange in the United Provinces.

 

6    Backing of the Rathonian Currency
The Rathonian currency must be backed by 80 percent of reserve fund in order to increase money supply in the Rathonian Economy. It can be backed by the following assets:
a)    The Almaris Mina.
b)    National Bonds from Norland and other settlements and nations.
c)    Precious Metal, at their par value.

 

7    Control of the value of the Rathonian Currency
The Central Bank shall attempt to control the value of the Rathonian Currency with the following targets
a)    The appreciation of the currency should not increase by more than 15% annually.
b)    The target inflation rate of Dùnrath should be kept under 10%.
c)    The total amount of M1, should not increase by more than 50% annually.
d)    The total of increase in Reserve cannot be more than 50% annually.

 

 

This Act, as an Executive Order is Executed by, the Grand Governor of the United Provinces of Dùnrath, Jarl of Dùnrath, 
The Most Honourable, Dùghlas MacDhaibhidh Sutharlainn