Corraile dollar

The Corraile Dollar (sign: $, code: CRD) is the currency of the Federal Republic of Corraile. It is also used interchangeably with the Lanayan Franc in Lanaya, since the latter currency is pegged to the Corraile Dollar at par. The sign CR$ is used to differentiate it from other dollar-denominated currencies, and is subdivided into 100 cents.

Introduced in 1970 to replace the earlier Atlantic Dollar, the Corraile Dollar has gained a reputation as one of the most stable currencies in the world, and is now the 11th most traded currency in the world, due to economic and political stability in Corraile, as well as relatively stable exchange and interest rates. Circulation of the currency is under the jurisdiction of the Federal Bank of Corraile.

History
By 1969, it became increasingly clear that Corraile would declare unilateral independence from Great Britain, and this would follow the dissolution of the Atlantic Territories, which included theTerritory of Stanraer Island, Fairman Island and Colganston. Along with this was the agreement to revamp the currency system used throughout the Atlantic Territories, which up until then had been using the Atlantic Dollar, issued by the Bank of the Atlantic Territories, headquartered in Highvale.

In the Corraile Act signed in March 1970, which guaranteed Corrailite independence in August that same year, Corraile was allowed to dissolve the currency system in place throughout the territories, and replace it with a brand new system fully under the jurisdiction of Corraile. The switch to the Corraile Dollar was seen as significant and necessary, as it allowed for a newer, more centralised monetary system between the different territories within Corraile, which up until the introduction of the Corraile Dollar had been issuing separate banknotes as the Atlantic Dollar. Furthermore, it allowed Corraile to circumvent the tight currency controls imposed upon the Atlantic Dollar, which had been bound by treaty to be part of the Sterling Area, with the Atlantic Dollar pegged to the Sterling pound at a rate of £1 = AT$3.25, which severely restricted control over the value of the currency. The valuation of the currency was essential to the Government as it allowed the country to reduce its labour costs compared to the US Dollar and allow its exports to remain competitive. Thus, the green light was given by both the British Colonial Office and the Corrailite Government to replace the Atlantic Dollar with the newer Corraile Dollar.

On September 1, 1970, just 9 days after Corrailite independence, the Corraile Dollar was released into circulation, with a final exchange rate of AT$1.51 = CR$1.00 (this exchange rate continues to exist today, and existing Atlantic Dollar currency can be exchanged for new Corraile Dollar currency). Atlantic Dollar continued to be used as legal tender until 7 September 1971, when the Atlantic Dollar was withdrawn from legal tender usage.

Up until 1977, the Corraile Dollar was pegged at US$1.00 = CR$1.63, until which it was allowed to float. However, it was, in the wake of the late-2000s financial crisis, the peg was reintroduced, with CR$1.00 being pegged to US$0.98, a rate which was abolished in 2011.