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Currency and Trading

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5 years ago
Sep 12, 2020, 12:25:23 PM

Currency Mechanic

To establish currency we have  to establish central bank. The role of central bank is to store your and foreign currency and trade currencies.


Central bank will have repo rate which we can fix and repo rate is loan taken by public bank from central bank.Here public bank shows expense going toward public which can be controlled. I choose this because anyother term not seems to be suitable.


The repo rate is here is like you are lending money to public bank ([Public bank is hypothetical you need not to build it]) the extra bonus money you are getting bank means give you extra money income and it will also increase trade.

It is suggesting a flow of cash from you to public to foreign civ to back to me.


The repo rate can be adjusted to control inflation or deflation. If repo rate increase it decrease money from city decrease and repo rate decrease it increase money from city. The effect is proportional to population of civ.


Appreciation of currency value

If there is shortage of our currency in central bank, the currency can be printed or if any foreign civ invest in our currency or if we sale foreign currency. The extra inflation can be by traders approaching your civ.


Depreciation of Currency value

If we buy foreign currency from our currency and if other civ buy our currency heavily cause deflation.


If inflation or deflation will be high cause heavy trade fluctuation.


One currency will be most used in international trade.

It can be strategic tool and can cause heavy loss to civ by fluctuating price by selling or buying currency.


In begining of this mechanic currency value can be as follow

Civ A

starting A=B=C=D (ABCD are currencies)

After few turns

A>B

A<C

A>D

Civ B

starting A=B=C=D

B>A

B=C

B<D

If you see any problem please comment.

Updated 5 years ago.
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5 years ago
Sep 13, 2020, 7:03:32 PM

Before 1972, currencies are ultimately connected to gold or silver, which central banks cannot print.

Repo is also wierd, who is borrowing from your central bank? Commercial banks? You have to introduce them first to have repo then, do you have a plan? For your whole idea of using repo rate as a tool for setting short term interest rate to work, there needs borrowing. Interest rate means nothing without borrowing activities.

The inflation and deflation you use seems to be apreciation and depreciation, rather than inflation and deflation, you need to make your terms clearer.

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5 years ago
Sep 13, 2020, 7:42:41 PM

It can be done to give value to currency the gold can be first to determine the value of currency and then value will be bye exchanges of currency.


I choose repo rate because it is better way of showing movement of money from central bank to public bank.

If there is any other way please share.

My major thing is i am trying to show flow of cash and i also said trade is also bringing foreign currency which is exchanged and an income of another currency or an investment by other civ.

Updated 5 years ago.
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5 years ago
Sep 13, 2020, 7:58:46 PM

An auction house for international trade will be a much much simpler replacement to your suggestion.

You proposed a complex system, yet lacks details. On top of the intrest rate without borrowing problem I mentioned in the last reply, what's the gain of international investment for the investor? How do players manage 10 currencies in the game, players are typically not traders who are good at monitoring a whole screen of quotes. What about cross currency arbitrage? This is not a financial simulation game ,I don't think such a complex system means a lot in it.

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5 years ago
Sep 13, 2020, 8:11:47 PM

Auction mechanic is worthless everything on the international market price will shoot


It is not complex I am saying


Central bank >repo rate(expense)> public bank(public)> Central bank or with trader

I have also said that you can print the currency. Printing a small amount will not decrease value aggressively.

If the player is having a good income why there will be a problem.

The player can also make deal with other civ with another currency.



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