Monetary Policy of the Bank of Atmaurium
History of money
Before describing the monetary policy adopted by the Bank of Atmaurium, it is considered prudent to revert to some key points about the history of money, and provide an overview of how it morphed into “fiat” money, the term used to describe all currencies as we know it today. To clarify, fiat money is a currency declared to be legal tender by an order of the government of a country. It is a currency that has no intrinsic or fixed value, and is not backed by any tangible asset. Prior to this, currencies were backed by gold and operated by policies regulated by the gold standard, being a system that the UK stopped using in 1931 and the US in 1933. The Bretton Woods Agreement and operating system was subsequently introduced from 1944. This created a collective international currency exchange, which required a currency peg to the US dollar, which in turn was pegged to the price of gold. The agreement witnessed the establishment of the International Monetary Fund (IMF), and the World Bank, still in existence today. However, the Bretton Woods agreement was suspended in 1971 by President Richard Nixon, and currently, no countries use the gold standard.
That said, having previously noted above, that fiat money is declared to be legal currency by a government, not backed by anything, your review of our website will confirm that the currency of the Kingdom of Atmaurium, the Thaleri, is one where I (one) unit of our monetary currency the Thaleri is equivalent to 1 (one) troy ounce of gold. Therefore, in terms of current world currencies, the Thaleri is unique.
Current Monetary Policy – Kingdom of Atmaurium
The Central Bank of the Kingdom of Atmaurium is responsible for setting and implementing monetary policy in the Kingdom of Atmaurium. Our monetary policy framework is geared to support the goals of the Kingdom. As such, we maintain fixed exchange rates between the Thaleri and the price of gold. This exchange rate peg, provides an anchor for our monetary policy. A stable currency and low inflation are important long-term features for the economy of the Kingdom of Atmaurium.
Adopting this monetary policy, supports a stable business environment and high levels of investment, both of domestic and international origin. The Kingdom of Atmaurium has a free market economy, with no restrictions on foreign exchange, capital movements, foreign investments, or foreign trade. This gives the Kingdom of Atmaurium a leading position, as it is a free, open, welcoming and transparent environment for investors.
The Bank of Atmaurium offers a set of deposit and lending standing facilities in the Thaleri currency. We do not maintain any administrative controls over other market interest rates, nor do we seek to influence the cost of credit.
Given that the exchange rate for our Thaleri currency is pegged to the price of gold, this offers investors a stable environment through which to trade, invest or exchange their foreign currency for the Thaleri.