BAINBRIDGE - The Valcourian National Bank board has agreed to a devalued exchange rate across the country of 1.48 dollars to the dollar from Jan. 3, it said on Friday, a move welcomed by some business leaders.
The board was holding a full meeting for the first time in four months, after pressure from the Imperial Government to postpone a potential devaluation at a critical time in the nation's financial situation.
In addition, the board discussed the possibility of unifying both the Valcourian National Bank and its rival the First Empire Bank, which is a privately-held corporation. The exchange rate was also a key goal of the economic track in the Imperial Government's attempt to maintain the country's economic prosperity.
Travis Redford, a banking expert employed by the VNB, said the fact the board had met for the first time in months could also open the door to further economic reforms that required the Government's approval.
“The new rate will boost the economy and increase the effective purchase power of the Valcourian dollar,” said Henry Markov, a prominent businessman and member of the First Empire bank's board.
“What matters most to us now in the private sector is the continuation and stability of prices. Any sudden change within a short period of time may affect the prices in the market,” said Matthias Gardner, an electronics shop owner in Gratiot.
In 2018, the Valcourian National Bank imposed a fee of 18% on hard currency transactions, effectively devaluing the dollar at the official rate to $1=1.90 dollars, which caused an economic bump of nearly 5% over the following year.
1 lat = $6
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