Debate | Do we keep the AINERO?

Things are that the AINERO isn't popular among our members. Only 4 nations use it fully. Then what is the point?

So, the only thing we can do now is to choose between to proposals.

PROPOSAL A) - We abandon the AINERO. We keep our own currencies and we make trades with the USD.

PROPOSAL B) - Every nations of the Alliance join the AINERO. We don't have our own currency, but trades will be lot easier.

I don't really care myself about which proposal will win. Facts are facts and the AINERO is dying at the moment. The only thing I request is that we vote on one of these proposals.

Proposal A

Porposal B. It would be more easier to trade

Even if the union abandons the AINERO as a whole, I'm keeping it and renaming it to the Illu'an Dollar.

I think the AINERO is fine as is.

Well, Dan, I guess you will deserve to keep it if the Proposal A is choosen

But could I keep the 50 bill? It's representing Syldavia after all

I think we all should be forced to use the AINERO.

Is the AINERO based on every nation's economy? If so, then I choose Proposal A because it can ruin a nation's economy simply if another nation is not economically viable such as Greece. In essence, this is similar to the EU. The UK did not opt to the Euro because their British Pound is worth more than the euro.

The United Republic of Lorenta will reconsider putting the AINERO into circulation.

Blakeway4 wrote:But could I keep the 50 bill? It's representing Syldavia after all

You can keep it. If Proposal A goes through, I'll even edit some of the text so it looks like a Syldavian ___.

that would be great! Thnx in advance Mr. President

Proposal B, we prefer. Fairview official coin is AINERO and if we abandon it we are forced to join Euro think you don't want to do, since our currency (Escudos de Fairview) are under valuable.

In favour of proposal A. Alternatively, the AINERO be the standard of trade between all AIN nations (status quo), where it does not exist as a true national currency but one for international trade

As Minister for Innovation, Trade and Investment, it is my job to decide what happens with the AINERO and the other economic events within the union.

Therefore I would appreciate being given the time I need to decide what to do, where to go, with it during my time in office.

Well, its a democracy. We can vote on removing things if we want We won't keep something if its only one member who want to keep it.

I never said I wanted to keep it. I'd just like to be given time to sort out my ministry before any decision is made on the AINERO.

Oh. ok

Anyway, this could get out of the Legislative Assembly and we could just go on...
If this was the time to decide, I'd say Proposal A.

We don't have a World Currency do we?

Im leaning more towards proposal A...

We could make trades with the most popolous nation in AIN if we didn't want to use the US, or does that not seem fair to you guys?

Although I'm not a member I'd still like to restate my opinion when we initially discussed about AINERO as a real currency, and I was a member:

Luug wrote:Hmm I didn't actually know that AINERO is a real currency, thought of it as more like a basket of currencies of the AIN (see ECU).

Instead of adopting USD, everybody can adopt AINERO as a virtual currency, all international bank transactions are made via AINERO conversion, for example:

Country A - 7.6477
Country B - 1.4122
Country C - 27.3241 = 1 AINERO
Country D - 15-4382
Country E - 9.6642

This example is just for demonstration, obviously the member states agree (similar to ECU), how much each currency, and which currencies constitute the value of AINERO. The most convenient way is to look at the national GDP's and calculate member proportions of the whole sum.

Countries A-E are AIN member states and share the AINERO as a common trade currency. Their own currencies are pegged to AINERO with a fixed exchange rate.


Country E wants to trade a banana with USA, a banana costs exactly 9 of their own currency units, which converts to around 0,9313 AIN. The conversion rate of USD and AINERO fluctuates as normal currencies, this depends on the trade between AIN member states and the USA. If at the moment 1 AINERO = 6USD, then 1 banana would cost around 5,5876 USD in country E.

Benefits of a monetary union are:
* No currency fluctuations between member states.
* Less currency fluctuation between non-member states.
* Can attract more investment since securities denominated in AINEROs provide investors with the opportunity for foreign diversification without reliance on the currency of a single country.
* If AINERO is a virtual currency, all member states may keep their own national currencies, and it is up to everybody who's money to accept. Technically it would be certainly possible to pay with Currency A in Country E.
* Overall smoother market fluctuation due to diversified risk.

Negatives:
* May hold back investment due to inability to focus investment.
* Economic advantages will be spread over multiple countries, instead of a single beneficent(?).

You can read more stuff from here:
http://en.wikipedia.org/wiki/North_American_Currency_Union
http://en.wikipedia.org/wiki/European_Currency_Unit
http://en.wikipedia.org/wiki/Common_Monetary_Area
http://en.wikipedia.org/wiki/Fixed_exchange_rate_system

Thus I would vote A mixed with B.

I hope someone understood me

I like the proposal. It does seem nice and it keeps our current currency. Although one thing, it would take some time to do all of this. Or would it?

It would all be done by the Ministry for Innovation, Trade and Investment. I am still considering what to do with the AINERO. I have plans, but it will take time.

Plans? such as? If you would like to share them.

Completely abandoning it, creating a virtual currency as Luug has suggested, full monetary union, regional currencies, pegged currencies with reserve currencies and commodities or even a Financial Commissioner post to oversee specific reforms of the AINERO.

These are some ideas that I am still refining, still working on and still planning. I also had plans to create a full international stock exchange in the MITI forum, as well as other ideas for my term. I have six months to do this in though and I am busy.

Sounds interesting If you don't mind, can you keep me posted?