IFD: Currency value change!!!
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by Israel Ministry of Finance
Dear citizens,
We would like to make an announcment.
As the time left for "peace" for our country starting to get shorter and shorter,
we need to start to realize that a war with turkey is unavoidable since they already talking about attacking us.
In order to defend ourselvs, we must be prepared for that battle, which will determine our future at the game.
We belive that after 6 months without country, we dont want to lose it again.
Therefore we came up with good plan in order to improve our country's strength.
Strength coming from people, why we dont have here much people?
The answer is obvious:
The wages we pay are extremly low!!!
The patriotic citizens came to eIsrael, but patriotism wont bring here extra citizens, or all the eIsraelis at the game.
Since this is the situation, and we need more menpower, the requested solution, is to deflate our currency, and make its value about twice stronger.
What does it say?
The NIS, our currency, that stood at 50 NIS per gold, will now be worth 25 NIS per gold(0.04 gold per NIS).
For what it is good?
Well,if we will keep the same wages at NIS as we did until now, each worker will be paid double! which is great for the people at eIsrael,and will attract people to come to our country and enjoy here.
Also, the market prices will be cut at half, which mean if until now weapon cost 16 NIS now it will cost 8 NIS, same thing goes for the rest of the market.
What we hope to get from it?
As we mentioned, more work force at eIsrael, more defenders for our country, more abundance, greater country.
What we going to lose from that?
Actually, the good things is, that we arent gonna lose anything, but the opposite is the correct, since each worker will get more money !!!
We would like to hear your opinion about the subject, dear eIsraelis!
Thanks for listening, IFD.
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Comments
Yes...
I am worried - such high inflation will destroy our fledgling economy. This is because prices and wages are now settling. This stability is far more of an inducement to investment and immigration.
Most sensible citizens in eRepublik look at what their wages can buy in relation to gold or what goods they can buy. So it does not matter if someone earns 10NIS 100NIS or 1000NIS if the value of what they can buy with it also goes up at the same rate.
Worse still - companies with large inventories and companies or citizens with large amounts of NIS will lose out big time (eg if I bought 100 diamonds for 1NIS and now they are worth 0.50NIS). This makes the business environment more uncertain and will deter companies from wanting to make further investments.
If attack is imminent - let's make it not worth their while. Let's have a Q5 hospital and Q5 defense system in place. Let's also talk with our allies and see if they cannot make a loan of gold so that we can buy these systems early and repay over time? Let's also make louder appeals in across the world for more citizens and engage in a political campaign to build a coalition of supporters (from PEACE and ATLANTIS) to appeal to eTurkey to cease it's agressive intensions.
In sum: I agree that we need a government response to the threat from eTurkey, but such devaluation of the currency will simply upset the economy and make us even weaker in the face of eTurkish aggression.
Franz Kafka
(CEO Libertas Foundation)
Im not sure you understood what we are doing here mate...
They wont lose money but earn money, a lot of it.
if some one had 50 NIS until now, which worth 1 gold back then, it means his 50 NIS just equal to 2 gold, he earned double then he had until now.
The companies from now on will pay 2 times wage then they did before, until now we payed about 1/4 gold to Level 7 skilled citizens.
And its keeping away people from here, since in USA for example or Romania or spain i can make with skill 7 about more then gold per day.
So it is not make sense you will lose money... only earn money from that, everyone who got NIS earned double, anyone who didnt, didnt lose anything.
Atm we are in deep contacts with the world to buy D.S and hospital Q5, dont worry.
And yeah, the citizens look at the salaries at gold, therefore when now the NIS will be double worth, the workers at eIsrael will earn double wage in gold as well, simple as that.
Respected President,
My apologies, I see that I misunderstood - you intend deflation of prices instead of inflation.
However my concerns still stands - it will cause disruption to the markets. Because companies pay salaries with the money they earn from sales - they will have to cut wages as soon as value of NIS halves. Companies that are slow to notice this change will collapse quickly - runing out of NIS and losing their workers when there is no money to pay them.
In addition everyone (companies and citizens) in anticipation of the change will hoard NIS and buy nothing - plunging our wellness and economy through the floor.
I appreciate the good work you are doing for this country - you and your administration are doing an excellent job: The rapid stablity you have brought to our economy through the clear and well communicated NIS50 = 1Gold policy has been outstanding. I fear that this achievement could be undone by a radical shift in the currency value (in either direction) at this time.
FK
Well therefore it is our duty to make sure everyone will understand the changes asap.
Moreover at any case we can change it back very fast.
We do think it will let the people improve thier wellness.
The reason is now when the gifts and food will cost half of the price the people will be able to buy at the market very much more.
And btw if you want to comapre the wages, we will still pay about 1/3 of the prices at the eWorld.
We will do our best job in order to make it work.
This will probably be okay (and quite possibly really good) for everyone except the grain industry.
Customers of manufacturing tend to be individuals and now with much higher wages available there should be more of those out there; but grain is bought by companies in bulk that were buying Israeli grain that cost about 10% to 20% more than the American market and now costs well over double the price of almost any foreign grain.
Now it has become imperative that Israeli grain companies that have been operating since the revolution be subsidized or bought out with the gold profits made by increasing the price of NIS this much. I wouldn't be surprised if this is exactly what has already begun happening. Otherwise I have the option to return to America and produce enough grain with my citizen alone to supply over half of HoneyApple's current grain requirements. And I'm going to hazard a guess that whether or not FAT RAT co (Forever Living Q1 food) was buying Israeli grain up till now, they will have to seriously consider buying American now in order to successfully compete with me.
Thank you for your transparency and well considered thought in guiding the Israeli economy. Could I suggest that future currency value changes be implemented more slowly though. A bouncing currency is fun for money market investors but not as much for citizens and companies.
Very Respectfully,
Greystrand, Wagon Wheel Manager
I think that the only reason it happend so fast, is that in 2 weeks we will be attack-able and we need the citizens to be ready until then.
I hope we will able to keep the grain industry here up and running and mostly profitable.
Such rapid changes wont be done so fast at the future.
It is difficult to remain profitable when there is no tax on grain imports. Can a congressmen propose at least a 30% tax on grain imports?
dun worry lol, there will be 99% on import of grain
Will there also be subsidies for grain companies? Tariffs won't stop organizations from buying grain overseas and donating it to their food companies tax free.
If Israeli grain is not subsidized by government and/or the food industry, there will not be viable employment for land workers in Israel.
6 workers lost from my companies and counting... People don't see the exchange rate as a gain for them...
sadeh, you forgot one very important thing. to make an economy stronger, you don't need a higher value for the currency, you need stability. you need to have a stable market without too many changes. the only way to achieve that is through time. once all the new tax laws pass you market will gradually become more and more stable. the more people are using this market the faster this will accure.
changes in the currency value are not supposed to be decided by the government. it is supposed to be influenced by the state of this country's economy.
GalArtsi - I have to both agree with you and disagree with you:
Disagree - I think the government has been right to pursue a fixed exchange rate policy at this early stage in our economic development - it has provided much needed stability and boosted investor confidence.
Agree - Sadly the opposite is true of the recent move to halve the NIS rate. This was an unneccessary move, created instability and I have seen good workers leave the country as a result. I trust that our leaders will reflect on this experience and adjust fiscal policy going forward.
Franz Kafka
(CEO Libertas Foundation)