With the virtual collapse of the Regional/Royal Mark (RMK), some are wondering if a unified currency serves any purpose in the region.
Of the top 10 economies in the Orange Order, only 3 are members of the Currency Union and use the RM.
The Regional Currency Act, intended to strengthen regional unity, instead has achieved the exact opposite. With so few nations now part of the Currency Union, some are asking if the RM has any relevance any more?
The answer is yes. This is because the RM can still be used in lots of the other nations as legal tender. It has led to high economic growth in Meercovo and has supported other nations. In fact, recently as nations left the RM, they suffered economic contraction, while nations who remained saw sudden growth.
It is clear that nations within the currency union see major benefits- ease of trade, travel and connections with other allied nations.
So why have nations been leaving? Its down to a combination of 2 factors:
Rising Tensions: nations don't want to share a currency with a nation they may go to war with.
Following other nations: Some people have left the currency union just because others have- they see it as weakening and therefore decide to leave.
However, the RM is undoubtedly stronger than any national currency and it isn't legal in just a handful of countries.
Overall, the RM is easier to use, better for national economies and suitable for all nations. Smaller nations such as LVF and Oranjehaven set to benefit most from the currency union as they will have the same interest rates and exchange rates as the much bigger and economically powerful nations.
Furthermore, the RM's bailout scheme will protect other nations in the event that one nation in the Currency Union goes bankrupt or suffered economically. In addition, the remaining nations in the union are working on economic support packages for smaller nations that will see to greater economic growth region wide.
In an attempt to save the RM, Meercovo recently decided to remain, but the Meercovo Treasury has revealed the direction they want the Currency Union to go:
A central bank be started to control finances, bailouts, interest rates and handouts to nations of up to 50 billion marks.
Lower interest rates an amendment to the original law to see the currency made legal region wide.
Nations to plan to join the Currency union in the future even if they don't want to now.
These targets are ambitious and difficult to achieve, but in one last attempt to save the RM, action is needed to get other nations back on board.