Ardalian Znak

Ardalian Znak

Ardaska Znak
ISO 4217
Unit
Plural	Znaks
Symbol	Zk‎
Denominations
Subunit
1/100	recka
Symbol
recka	r
Banknotes
Freq. used	10, 20, 50, 100, 200, 500, 1000, 5000 Zk
Rarely used	5, 5000 Zk
Coins
Freq. used	5, 10, 20, 50r, 1, 2, 5 Zk
Rarely used	1, 2r
Demographics
Date of introduction	A
User(s)	Ardalia
Issuance
Central bank	Ardalian National Bank
Website	http://anb.ar
Valuation
Inflation	1.62%

The Znak (symbol: Zk, ISO code: AZK) is the official currency of Ardalia. The Znak is divided into 100 recka, the currency consists of both coins and banknotes. The Ardalian Znak is a free-floating fiat currency and has been since X, when the gold standard was abandoned at the height of the economic depression. The currency is issued and regulated by the Ardalian National Bank.

History

When the Ardalian Republic was formed following the overthrow of the Mezga monarchs in 1910, one of the first actions taken by the new Assembly was the creation and introduction of a new currency to replace the long-standing Stara (which was one of the first currencies to ever be decimalized in the world). Premier Frenc Letzo and his Democrats insisted that this was critical in order to further move the nation away from the hundreds of years of autocratic rule. The Assembly passed the National Currency Act 1911 unanimously and proclaimed the new currency would be called the Lita. The National Bank of Ardalia immediately began to design and produce new coins and banknotes that would be be put into circulation at the end of that year even though they knew such an accelerated timeline would come with risks but the Assembly would not have it. The Bank proceeded to set an fixed exchange rate of 100 Stara to 1 Lita that would last through 1914 to give people enough time to convert their old currency. As the sun rose on 1 January 1912, the Lita became official, but its introduction was immediately felt on the international currency markets. In order to secure the credibility of the Lita and minmize instability, the currency was pegged to the gold standard (2500 Litas = 1 kg of pure gold) and the National Bank would use litas to exchange for foreign currency. This increased confidence in the domestic banking and monetary sector. The Lita's value would be in flux continually, and this transpired into economic confusion within the country.

After three years, the Lita had considerable strength and enabled the reinvigoration of the country's economy and improved Ardalian relations on the international stage. The Lita would remain stable until the 1931 economic depression befell the world and overnight the Lita lost over half of its value. In an effort to mitigate the worst effects, the currency went off the gold standard the following year. This further reduced its value but the National Assembly passed legislation that converted the Lita into a fiat currency and ordered the Bank to take whatever steps required to shore up confidence - it was at this moment where they were given near-limitless power to regulation and maintenance the currency based on fluctuations in the currency marketplace. The world emerged from the economic depression in 1935 and although the Lita survived, it was rather weak. It would remain this way throughout the four-year long Great War but the increased Government investment in wartime industries and infrastructure did help to increase its value.

Following the war, General Frelno Letzek overthrew the First Republic in a coup and instituted a military dictatorship in its place. He canceled the-then circulating series of coins and banknotes (1935-1944) and had the Bank issue new versions: the banknotes with his portrait and coins with notable nationalistic symbols. His coup did lower the Lita's value but he counter it by instructing the bank to artifically increase its value to make it more attractive to the international markets. He would do this several times over his tenure, three times in one year following the breakdown of relations between Ardalia and Loslakia in the late 1970's but his actions were exposed when the war with the Pontanore broke out and the Lita dropped to its second-lowest point since the depression of the 1930's.

Since Letzek's ouster in 1983, the Lita has been slowly but steady regaining value. Although the Moderate Governments of the early 1990's saw the increasing value as a sign of economic growth, the National Bank could begin to see signs of trouble in the noise of the currency markets. They saw several Ardalians gain massive fortunes in a relative short period of time and saw a steep dive in 1996 when the Civil War broke out, affecting millions. In the early 2000's, the Thearean Community began discussions about the possibility of a shared currency but every Ardalian political party have vehemently opposed the idea as an attack on their nation's identity.

Today, the Lita is one of the stronger currencies in Thearea. But it will always be overshadowed by the far more fluid and pervasive Credita Pontanoresca.

Exchange Rate

The Vuszt Banka Ardaska, Ardalia's central bank, manages the exchange rate of the Lita in times of economic issue, therefore giving the currency in that time period a managed float exchange rate.

The advantages that Ardalia reaps from having a floating/managed float exchange rate is primarily the ability for it to absorb immediate economic shock or currency crisises, while allowing for the National Bank to intervene if needed.

Coins

Current Centas Series (2018)
Value	Metal	Edge	Description
			Obverse	Reverse
1r	Aluminium	Smooth	x	x
2r	Aluminium	Smooth	x	x
5r	Aluminium	Smooth	x	x
10r	Copper, zinc, and nickel	Smooth	x	x
20r	Copper, zinc, and nickel	Smooth	x	x
50r	Copper, zinc, and nickel	Smooth	x	x
1 Zk	Copper, aluminium, and nickel	Smooth	x	x
2 Zk	Copper, aluminium, and nickel	Rimmed	x	x
5 Zk	Copper, aluminium, and nickel	Rimmed	x	x

Banknotes

Image		Value	Dimensions (millimetres)	Main colour		Description
Obverse	Reverse					Obverse	Reverse
		5 Zk	122×61 mm		green	X	X
		10 Zk	126×63 mm		gray	X	X
		20 Zk	130×65 mm		red	X	X
		50 Zk	134×67 mm		blue	X	X
		100 Zk	138×69 mm		reddish brown	X	X
		200 Zk	142×71 mm		brown	X	X
		500 Zk	146×73 mm		olive	X	X
		1000 Zk	150×75 mm		bluish gray	X	X
		5000 Zk	154×77 mm		Purple-Magenta	X	X