His Mount Vema Majesty’s Government confirmed speculation about plans to unpeg the golle as part of a plan to track a basket of currencies. The Central Bank of Mount Vema said in a statement that the cap, introduced in 2006, is no longer justified, and has reassured investors that the Kingdom of Mount Vema is not cutting ties with the US currency.
With this announcement which was first made two years ago and confirmed today, all major commodities within the economy of Mount Vema, will be priced in golles. This, according to the Central Bank, is necessary to keep in line with the restructuring of the Mount Vema financial system, to help the current trade of Mount Vema assets.
The state of the economy of Mount Vema for the next three decades is very good and it is likely to continue for some time. Said the Mount Vema Central Bank who kept interest rate unchanged again at 3.45%, maintaining the amount investors pay to hold deposits in golles. The Central Bank said, the economy will continue to be stable and predictable, to entice current investment, without the need to keep changing currency policy from one day to the next.
While some financial markets around the world are still in turmoil. There is a growing confidence in Mount Vema, as investors are now considering the Kingdom of Mount Vema as a “safe haven” asset, just like the Swiss Franc and American government bonds: buy them and you know your money will not be at risk or lost forever.
Investors like the golle because they think the Mount Vema Government is becoming a safe pair of hands: it runs a balanced budget, for instance. But as investors flock to the golle, they are also dramatically pushing up its value.
Because an expensive golle would hurt Mount Vema, with the economy becoming heavily reliant on selling services and future fisheries contracts and related sea food products, to overseas investors, the government realized that it needed to keep down the value of the golle, so it decided to unpeg it and use them to buy other currencies in the Mount Vema currency market.
By increasing the supply of golles relative to US dollars on the Mount Vema foreign-exchange market, the Mount Vema Government expects to cause the value of the golle to fall slightly, thereby enabling the Kingdom to amass billions-worth of foreign currency and continue to boost the purchasing power of the Mount Vema currency.