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DISCLAIMER: In my article, I will speak about “the war”. I mean the taking of Wallonia by Poland, the attack on Brussels and the RW in Wallonia. I don’t care if this should be considered as a real war, a coordinated region swap, an uncoordinated RW, or whatever; I am merely referring to the economical effects. Please don’t use this article to start discussing “the war”. Thanks… 😉

As many of you have probably seen, the BEF-GOLD rate has risen from 1 BEF = 0.019 G to 1 BEF = 0.022 G. This has been noted first on the forum by Sammy Tanghe. The first reply to it - by Xgentis -, was short but accurate: "Blame the war". I will elaborate a bit on that:

Because of the war, everybody is buying BEF with their GOLD to buy food to fight (which is obviously good...). This causes a huge demand for BEF. With NBB-BNB, I have put an offer of 4,000 BEF on the market yesterday, and it was sold in a very short time.

Now, we could print extra money, and keep the rate at 0.019 G. However, that will only cause harm in the long term. All the BEF is in the food companies who sold the food they had in stock. They will keep some of the BEF in stock to pay wages, but eventually turn the BEF into GOLD (especially the foreign companies). This is actually a great opportunity for them to turn the BEF into GOLD, because of that high rate. However, there is a day or two delay in that, but after the war effect settle down, the rates will drop.

If we print too much money now, if will cause that drop to be even larger, causing the BEF to crash out of control.

I could support a small amount of money to be printed, as the stock in NBB-BNB was slowly diminishing anyway, but it should not be higher than 20,000 BEF. In that case, the drop will be less big, and any BEF offered at a low rate can be bought by NBB-BNB without creating unreasonable high stocks that will impact the economy, or spending all our national gold on buying back BEF.

However, we could not print money earlier, because of the war. Why? Because we would have to move GOLD into the national accounts. However, with the possibility that ePoland would conquer all of our regions (thanks to the new game mechanics that auto-attacks regions), we would lose any of the GOLD or BEF printed in our state accounts.

Because of this possibility, one of our Congress members has proposed to move 8,000 BEF to NBB-BNB. (Thanks, Theneka!) The BEF would be safe there. However, the war has currently ended, so the danger has passed for the moment. Still, the 8,000 BEF in NBB-BNB will serve a good purpose, as it can be used to restore a stable BEF in time.

For the moment, I will allow for a natural decline in the BEF rates, as demand will be lower again and food companies can sell their BEF with a bit higher profit. I would suggest all company owners to take this opportunity. In time, I will actively start restoring the rate at 1 BEF = 0.019 G again, to keep our country attractive as (iron) export country.

I hope I have clarified the current (economical) situation a bit!

Always at your service,

Boklevski,
Minister of Finances