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CURRENCY Money,
money, money it must be funny in a rich man's world. |
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FAQs
about the World's
Smallest Nation
K.I.S.S. (Kronish
International Secret
Service)
The adorable kronicle. The Economist has called it "The little currency that could: it might actually be worth something someday."
Current Exchange Rates:
Live Mid Market Updates as of 7/07/08
82,521.50 kronicles to 1 dollar US
1,155.30 kronicles to 1 Euro
In the early days of my sovereignty, I began minting money carelessly
without any real monetary policy. I was lackadaisical about serial numbers.
The exchange rate varied drastically. Sometimes kronicles became worthless
before I was even done minting them. And whenever I ran out of money,
I just photocopied some more, and that caused terrible inflation.
In 2001, the kronicle was pegged to the Romanian leu and I had a stable
exchange rate hovering around 32,000 kronicles to the US dollar. But
in July of 2005, Romania redenominated its currency. (That means that
10,000 of the old leu equal 1 new leu. The leu is now a viable currency
with a decent exchange rate and a good move for Romania as it enters
the European Union). I didn't have the reserves necessary for redenomination,
so the kronicle began to float. Again I’m having serious trouble
keeping inflation down.
In addition: the IMF imposed a number of Structural Adjustment Programs
(SAPs) on my economy. One of them is that I must give away thousands
of kronicles periodically. My IMF contact told me this would keep my
inflation down. Now, I'm no economist, but I thought that flooding the
market with quasi-worthless currency would send inflation through the
roof, right?
Just because I mint my own money using a photocopier, don't think you
can get away with any counterfeiting. Each kronicle has a unique serial
number and is affixed with tape. My thumbprint is in the tape so don't
even try it.