Reserve currency (Pardes)

The Pardesi reserve currency is a currency held by Pardesi central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate. A large percentage of Pardesi commodities, such as gold and oil, are usually priced in the reserve currency, causing other countries to hold this currency to pay for these goods. Holding currency reserves, therefore, minimizes exchange rate risk, as the purchasing nation will not have to exchange their currency for the current reserve currency in order to make the purchase.

Tarsan Harkan

The Tarsan Harkan is a little used reserve currency, only utilized by Dacia and several smaller middle eastern states. The United Development Bank maintains a significant reserve of harkans as a reserve currency to fall back on in the event of the United Republic dollar failing. The idea was first pushed in 1996 by a treasury scheme to increase Tarsan borrowing power in the event of a major conflict. It was met with minimal success. The harkan maintains a 1.6% foreign reserve.