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- #1
Author: wetc
Sponsor: Milkcrack
Type: Act of Parliament
Preamble: This Act aims to establish the Bank of Azalea (BOA) as an independent monetary authority tasked with stabilizing Azalea’s financial system, managing monetary policy, and maintaining the Azalea Dollar’s commodity-backed standard.
1. Establishment of the Bank of Azalea
(a) A new entity, the Bank of Azalea (hereafter BOA), is established.
(b) The BOA shall operate independently of the government to ensure impartiality in monetary policy and reserve management.
(c) The BOA shall be governed by a Board of Governors, composed of five members:
(i) One member, who must be a member of the Crown, appointed by the Crown.
(ii) The Minister of Commerce, serving ex officio.
(iii) Three members appointed by the Prime Minister and approved by Parliament.
(d) Members of the Board shall serve three-month terms, with no limits on reappointment.
(e) Members of the Board can be removed by a two-thirds majority vote in Parliament, including the Crown’s nominated representative.
2. Functions and Powers of the BOA
(a) The BOA shall provide secure storage of reserves for all deposit-taking financial institutions (DTIs).
(b) The BOA shall have the authority to:
(i) Adjust the interest rate on deposits held at the BOA by DTIs.
(ii) Adjust the minimum reserve requirement for DTIs.
(iii) Adjust the minimum portion of reserves DTIs are required to hold with the BOA.
(c) The BOA shall manage the Azalea Dollar’s commodity backing by maintaining sufficient reserves of Azalite to ensure the currency is backed by tangible value and remains stable.
(d) The BOA will have the power to purchase Azalite ore, ingots, products, etc., and Azalite futures to maintain the reserve.
(e) The BOA will mint new currency with the unanimous consent of the entire board, including the Crown’s representative and the Minister of Commerce. This money may not be used for any other purpose than to purchase Azalite to maintain the present level of money in the economy. Any currency minted in anticipation of Azalite purchases but not used by the end of a thirty-day period is to be destroyed promptly.
3. Management of Resource Reserves
(a) The BOA is tasked with maintaining a supply of Azalite equal to the supply of Azalea Dollars in circulation, based on an exchange ratio set by the BOA.
(b) At the time of enactment, the initial exchange rate shall be set at 1 Azalite Ingot = 1,000 Azalea Dollars, subject to future adjustments by the BOA in accordance with economic conditions. The BOA must always be willing and prepared to buy or sell Azalite at the set exchange rate from Investment or Commercial Banks.
(c) The BOA may revise the exchange rate as needed to maintain financial stability, with revisions subject to a public justification.
4. Reporting and Transparency
(a) The BOA shall publish monthly reports detailing:
(i) Aggregate reserve levels, including Azalite holdings.
(ii) Changes to interest rates, reserve requirements, or the exchange ratio.
(iii) Economic indicators relevant to monetary policy decisions.
(b) The BOA shall be audited quarterly by an independent body, with audit reports made publicly available to ensure transparency and accountability.
5. Safeguards and Oversight
(a) The BOA shall not:
(i) Provide direct loans to the government or private entities.
(ii) Intervene in non-monetary matters such as taxation or fiscal policy.
(b) The government retains the right to challenge specific BOA decisions in the Supreme Court of Azalea if such decisions pose a substantial risk to national economic stability.
Enactment: This Act comes into force immediately upon passage.
Sponsor: Milkcrack
Type: Act of Parliament
A
BILL
TO
Establish the Bank of Azalea
BILL
TO
Establish the Bank of Azalea
Preamble: This Act aims to establish the Bank of Azalea (BOA) as an independent monetary authority tasked with stabilizing Azalea’s financial system, managing monetary policy, and maintaining the Azalea Dollar’s commodity-backed standard.
1. Establishment of the Bank of Azalea
(a) A new entity, the Bank of Azalea (hereafter BOA), is established.
(b) The BOA shall operate independently of the government to ensure impartiality in monetary policy and reserve management.
(c) The BOA shall be governed by a Board of Governors, composed of five members:
(i) One member, who must be a member of the Crown, appointed by the Crown.
(ii) The Minister of Commerce, serving ex officio.
(iii) Three members appointed by the Prime Minister and approved by Parliament.
(d) Members of the Board shall serve three-month terms, with no limits on reappointment.
(e) Members of the Board can be removed by a two-thirds majority vote in Parliament, including the Crown’s nominated representative.
2. Functions and Powers of the BOA
(a) The BOA shall provide secure storage of reserves for all deposit-taking financial institutions (DTIs).
(b) The BOA shall have the authority to:
(i) Adjust the interest rate on deposits held at the BOA by DTIs.
(ii) Adjust the minimum reserve requirement for DTIs.
(iii) Adjust the minimum portion of reserves DTIs are required to hold with the BOA.
(c) The BOA shall manage the Azalea Dollar’s commodity backing by maintaining sufficient reserves of Azalite to ensure the currency is backed by tangible value and remains stable.
(d) The BOA will have the power to purchase Azalite ore, ingots, products, etc., and Azalite futures to maintain the reserve.
(e) The BOA will mint new currency with the unanimous consent of the entire board, including the Crown’s representative and the Minister of Commerce. This money may not be used for any other purpose than to purchase Azalite to maintain the present level of money in the economy. Any currency minted in anticipation of Azalite purchases but not used by the end of a thirty-day period is to be destroyed promptly.
3. Management of Resource Reserves
(a) The BOA is tasked with maintaining a supply of Azalite equal to the supply of Azalea Dollars in circulation, based on an exchange ratio set by the BOA.
(b) At the time of enactment, the initial exchange rate shall be set at 1 Azalite Ingot = 1,000 Azalea Dollars, subject to future adjustments by the BOA in accordance with economic conditions. The BOA must always be willing and prepared to buy or sell Azalite at the set exchange rate from Investment or Commercial Banks.
(c) The BOA may revise the exchange rate as needed to maintain financial stability, with revisions subject to a public justification.
4. Reporting and Transparency
(a) The BOA shall publish monthly reports detailing:
(i) Aggregate reserve levels, including Azalite holdings.
(ii) Changes to interest rates, reserve requirements, or the exchange ratio.
(iii) Economic indicators relevant to monetary policy decisions.
(b) The BOA shall be audited quarterly by an independent body, with audit reports made publicly available to ensure transparency and accountability.
5. Safeguards and Oversight
(a) The BOA shall not:
(i) Provide direct loans to the government or private entities.
(ii) Intervene in non-monetary matters such as taxation or fiscal policy.
(b) The government retains the right to challenge specific BOA decisions in the Supreme Court of Azalea if such decisions pose a substantial risk to national economic stability.
Enactment: This Act comes into force immediately upon passage.
