Currency
In order to better understand the currency system and how the economy in Ransera generally works, here is the lore information on Ransera's currency.
Banking
Most banking in Ransera is either directly performed by or related to the Guild of Coins, or more commonly coined ‘The Republic Bank' a multi-national, politically neutral association of lenders, investors, wealth managers and institutional banking professionals. The Republic Bank is extremely wealthy and powerful, with more wealth than most governments in reserve and truly astronomical annual earnings. Headquartered in the Republic of Cathena, in the capital of Cathena City, the influence of the Republic Bank reaches as far out as the fringes of Turoth and has had a heavy hand in the finance sector since the Clockwork Age. For this reason, deposit rates, banking policies and lending interest rates tend to be uniform across the world. The bank also plays a heavy part in the fluctuation and control of wages and property values.
Coinage and Bank Notes
Generally speaking, most citizens in the world of Ransera perform daily transactions with Bank Notes certified by the Republic Bank. These notes are weighed against the total value of assets listed in the holdings they register with the bank. Those with an account in the bank are issued a booklet upon which they can write a number representing the total value of the item being purchased. The recipient of the note can then take it to the nearest branch of the Guild of Coins to withdraw the funds or have it transferred to their own holdings and never see the physical coinage. The total amount is then deducted from the writer of the note's account. For those who prefer not to keep their holdings registered with the Republic Bank, the bank provides exchange services and issues coinage with a standard value that is recognized across the world. The benchmark for currency across the world is the Copper Aven abbreviated simply as "copper piece (gp)". This coinage was established in the Clockwork Empire. As the influence and holdings of the empire increased over the centuries it became the dominant form of currency across the world. As the Guild of Coins was founded in the Clockwork Empire and has held on to these standards since that era, it has carried forward into the present day.
All coins issued by the Republic Bank are minted by them and engraved with the Seal of Avenna, the Demigoddess of Trade and Commerce. The demigoddess personally blesses each coin to ensure its authenticity. The hierarchy of coins is the Platinum Aven (PP), Gold Aven (GP), Silver Aven (SP) and the Copper Aven (CP), with the platinum aven being the most valuable and the copper aven being the least valuable. In terms of every day use, most people simply refer to them as "platinum pieces", "gold pieces", "silver pieces" or "copper pieces".
Platinum Aven (PP). It is worth 1,000 gold avens, 10,000 silver avens or 1,000,000 copper avens.
Gold Aven (GP). It is worth 10 silver avens or 1,000 copper avens. 1,000 gold avens is equal to 1 platinum aven.
Silver Aven (SP). It is worth 100 copper avens. 10 silver avens is equal to 1 gold aven. 10,000 silver avens is equal to 1 platinum aven.
Copper Aven (CP). The benchmark currency. 100 copper avens is equal to 1 silver aven. 1,000 copper avens is equal to 1 gold aven. 1,000,000 copper avens is equal to 1 platinum aven.
Deposit Rates
Simple Deposit Yield: 4% - Simply put, all money left in a bank garners a 1% quarterly or 4% annual interest rate for the depositor. For example, if you leave 100 GP in the bank in Searing, in Ash the balance will increase to 101 GP.
Investment Yield: 8% - Every two seasons, or twice a year, you will be given a deposit of 4% of your total investment value to your bank account. An investment deposit locks up all money deposited for a six month period, at which point the money can either be re-deposited into the investment, withdrawn or converted to a simple bank balance deposit. It is possible to withdraw the funds outside of the six month renewal period, but with a 5% penalty to the total balance of the investment deposit (not including interest gained) being taken from you.
Lending
Lending Rates:
- 1,000-24,999 GP: 5% SIR (Seasonal Interest Return); 5% of the total loan value must be paid to the bank as interest every season until the full loan amount is repaid. Even if the loan’s principal value is decreased, the total value determines interest payments. The same rules follow higher loan amounts, but with lower percentages attached.
- 25,000-74,999 GP: 4% SIR
- 75,000-149,999 GP: 3.5% SIR
- 150,000-499,999 GP: 3% SIR
- 500,000 GP+: 2.5% SIR
Please note that as the Guild of Coins has influence globally, all cities will have repossession and interest acquisition agents on hunt for those defaulting on their loans. Three seasons of aggregate failed interest repayments is considered a default, meaning you can never be allowed to miss more than two payments total across your loan. Serious RP repercussions can follow.
