OAD

The OAD (Tamashek: Oraɣ d Aman Deketan, lit. "Reserve of Gold and Water") is an institution of the Charnean government which exercises control over monetary policy. The powers and responsibilities of the OAD include the issuing and regulation of currency in circulation, maintenance of the national gold reserve, and the administration of the Charnean dual currency system.

Dual Currency System

The Charnean economy uses two distinct currencies as mediums of exchange, both controlled by the OAD through separate and parallel systems of valuation. This is known as the ABC, short for Alxalat Baddal n Charnea (lit. "Charnean system of exchange"), and has existed since the foundation of the OAD in 1924. The underpinning of the ABC is the virtual water trade that has for centuries served as the foundation of the Charnean economy. In the environment of the Ninva, water is the limiting factor which restricts the supply of all necessary goods and services including the production of food, provision building materials such as wood and adobe, and the products and services derived from animals.

Valuation

Azref

The value of the Azref is pinned to market value of gold at an exchange rate of one Azref to one milligram of gold. Charnea is one of the largest gold producing countries in the world, enabling the Charnean government to exert a degree of influence over gold prices and by extension the value and inflation rate of the Azref. The currency peg on which the Azref's value depends is administered by the OAD through its control of the national gold reserve of Charnea, which buys gold from Charnean mining companies in exchange for Azrefs to increase the amount of currency in the economy and sells gold for Azrefs when the government's normal revenue streams are insufficient to fund the state. This process of buying and selling Azrefs controls the supply and market value of the currency and is used to uphold the face value of the Azref as being equal to the value of one milligram of gold.

Aja

The water-backed Aja currency can be can be exchanged for the right to extract 1 liter of water. The validity of the exchange rate is enforced by the OAD, which holds the rights to the underground aquifers as well as manmade and natural surface water such as oases and rivers. The OAD issues extraction contracts which stipulate adherence to the fixed exchange rate of one Aja per liter of water, known as the Aja rule, granting the OAD the legal authority to impose penalties on extractors which do not abide by the Aja rule. The value of the Aja is affected by two factors, these being the amount of Aja currency in circulation and the overall demand for water and water-based products.