Arcacian dollar

The Arcacian Dollar (sign: $, code: ARD) is the official currency of Arcacia and Lycanthia. Within Arcacia and Lycanthia it is almost always abbreviated with the dollar sign ($) with ARD$ sometimes used to distinguish it from other dollar-denominated currencies. It is subdivided into 100 cents.

The Arcacian Dollar is not currently floated on the stock exchange and is the only currency in the world still on the Gold Standard. One Arcacian Dollar equals 1/1000 troy ounce of gold. As a result, it is seen as a safe place to store assets with many traders around the world buying Arcacian Dollars as a stand-in for gold bullion.

History
Prior to the inception of the Arcacian Dollar the British Pound Sterling and the French Franc were used and, for the purposes of local commerce, were pegged to each other and seen as equals. This was done as much for local convenience as it was for local diplomacy, the British and French having conjointly settled Arcacia. Only the Pound Sterling was used for international trade, however.

The issue of a separate currency for Arcacia was first discussed in the 1840s, with a special meeting of the Senate resolving a referendum to adopt a new currency for Arcacia. The referendum to adopt a new currency passed virtually unanimously. The name "Dollar" was selected as it was considered the most neutral with "Pound" being considered too British and "Franc" considered too French. "Crown" was considered but decided against as the only other nations to use that nomenclature were monarchies.

The decision to peg the currency to the price of gold was taken very early and is still in effect, though there is a proposal to have the currency floated on the stock exchange as a trading currency. The original proposal was deferred until the amount of printed cash equalled the total amount of gold and other precious metals in the National Reserve, however this may be brought forward to avoid any possibility of the currency becoming non-guarantor.

The first banknotes were issued in 1850 with only the $1, $5 and $10 being printed as no higher denomination was needed. The first coins were also issued, with ¼c, ½c, 1c, 5c, 10c and 25c being minted, alongside the Half Sovereign ($500) and Sovereign ($1000) which were only used for international trade or very large transactions. This was the extent of the currency until 1945 when the ¼c and ½c were withdrawn from circulation and the $20 note introduced. The $50 note was introduced in 1973 and the $100 note in 1984 to coincide with the introduction of those denominations into the neighbouring Australian Dollar.

The Dollar was introduced in Lycanthia in 2010 as the amicable protectorate agreement came into effect, replacing the Pacific Franc. The move was controversial in Lycanthia but ultimately accepted as necessary to save the Lycanth economy. Part of the agreement is the investment in a Lycanth currency which will be launched at the conclusion of the agreement in 2020.

Coins
Produced by the Arcacian Treasury, Arcacian coins have medallic orientation, as do Australian and most other Commonwealth coinage, Japanese Yen coinage, and Euro coinage. This is in contrast to coin orientation, which is used in United States coinage.

Banknotes
The banknotes of the Arcacian Dollar were first issued in 1850 when Arcacia adopted its own currency. The current "First Arcacians" series was issued in 2000. Banknotes have a picture on the front and the notes value printed in words on the back. A laser-readable holographic plastic strip on the front covers a magnetic strip that contains the serial number, date of issue and a unique code. The serial number is printed on the front of the note.

Bullion Coins
Arcacia also issues bullion coins struck from pure gold. Their face value reflects the value of their weight in gold. The $500 and $1000 coins are known officially as the Half Sovereign and Sovereign respectively.

Gold Bonds
Gold Bonds are bearer bonds issued by the treasury. They were first issued in 1929, with denominations ranging from $100 to $1 million. Today, the only denomination issued is $100,000. Originally sold to Arcacia's wealthy to sure up the treasury against the depression, today they are issued as a way of investing in large amounts of gold. They are also used to transfer large sums of money, though this use has been almost completely replaced by electronic transfers. The bonds (like banknotes) are guaranteed against the national gold reserve. Upon presentation at a bank, the bearer is entitled to $100,00 in cash paid directly or deposited into their bank account, or 100 Sovereigns. Gold Bonds are legal tender and can be traded and spent just like any other note, though this usage is exceedingly rare.

Value of the Arcacian Dollar
Since its inception in 1850 the Dollar has been pegged to the Gold Standard. One Arcacian Dollar is exactly equal to 1/1000 troy ounce of .9999 gold. It is one of the few currencies in the world where every minted coin and printed note is guaranteed by the national gold reserve, though this does not necessarily extend to moneys held electronically. Due to this, the government is expected to explore floating the currency within the next 10 to 15 years.