Currency Exchange
The foreign exchange (Forex) system gives each active country its own floating currency. Players can trade currencies for profit, and cross-country investments settle in the currency of the asset's country.
Active Currencies
| Country | Currency | Code | Initial rate (vs. internal unit) |
|---|---|---|---|
| United States | US Dollar | USD | 1.0 |
| United Kingdom | Pound Sterling | GBP | 0.75 |
| Japan | Japanese Yen | JPY | 106.0 |
| Germany / EU | Euro | EUR | 0.92 |
| China | Chinese Yuan | CNY | 7.2 |
| Brazil | Brazilian Real | BRL | 5.0 |
All six currencies above are active. Canada (CAD) and Nigeria (NGN) are reserved for future expansion.
Rates are measured against an internal "anchor" unit — not directly against each other. Cross-rates are derived: USD/JPY = jpyRate / usdRate.
How Exchange Rates Move
Each turn, rates update through three components:
1. Macro Fundamental Drift
Each country's rate drifts toward a target based on its economic conditions:
macroTarget = baseRate × max(0.01, 1
− (primeRate − baselinePrime) × 0.02 // higher rates → stronger currency
+ (inflationRate − baselineInflation) × 0.015 // higher inflation → weaker currency
− (gdpGrowth − baselineGDP) × 0.01 // higher growth → stronger currency
− (tradeGrowth − baselineTrade) × 0.005 // trade surplus → stronger currency
)
The rate drifts toward the target at 5% per turn. A significant rate shock takes roughly a full game year (~48 turns) to converge 90% of the way. This creates multi-month currency trends — time to spot, build positions, and exit.
Baseline economic values (neutral state):
| Country | Baseline prime | Baseline inflation | Baseline GDP | Baseline trade |
|---|---|---|---|---|
| US | 2.5% | 2.0% | 2.5% | 0% |
| UK | 2.0% | 2.0% | 1.5% | 0% |
| JP | 0.1% | 0.5% | 1.0% | 0% |
| DE | 2.0% | 2.0% | 1.5% | 0% |
| CN | 3.45% | 1.0% | 5.0% | 4.0% |
| BR | 10.5% | 4.5% | 2.5% | 2.0% |
If the US central bank raises its prime rate from 2.5% to 5%, the USD macro target strengthens by 0.05 (2.5% excess × 0.02 sensitivity). The USD rate then drifts toward that stronger target over many turns.
2. Player Volume Pressure
Net buy/sell volume from the past 24 turns creates a short-term rate offset:
volumePressure = clamp(netVolume × sensitivity, −5%, +5%)
finalRate = macroRate × (1 − volumePressure × 0.2)
Volume pressure accounts for 20% of rate direction; macro fundamentals drive the other 80%. The ±5% cap prevents whale trades from causing extreme swings.
3. Random Noise
Per-turn jitter of ±0.3% prevents perfectly predictable movements.
Guardrails
Rates are capped at ±50% from their base rate. A currency cannot hyperinflate or collapse beyond that floor/ceiling.
Trading Currencies — Three Tiers
| Tier | Method | Spread | Fill |
|---|---|---|---|
| 1 | Market maker | 0.275% | Instant, always available |
| 2 | Public limit order | 0.175% | When market rate meets your limit |
| 3 | Direct player trade | 0.10% | When target player accepts |
Tier 1 (Market Maker): Instant fill at the current rate ± 0.275% spread. Used automatically for auto-convert purchases. Volume pressure still applies.
Tier 2 (Limit Orders): Post a public order at a target rate. The order auto-fills when the market price crosses your limit (0.175% spread). Other players can manually fill it early for a direct player trade fee instead. Set an optional expiry in turns.
Tier 3 (Direct Trades): Send a specific currency offer to a named character. They can accept or decline — no counter-offers. Expires after 24 turns by default.
Spread fees are split: 50% destroyed (deflationary sink) and 50% to the currency's central bank. The central bank's share is itself split 80% to forex revenue (intervention ammunition) and 20% to reserve balance (long-term buffer).
Multi-Currency Wallet
Your character has two money pools:
- Campaign funds: Always in your home currency. Used for campaign spending, ads, and party actions. Never converted or held in foreign currency.
- Personal wealth: Multi-currency. Each currency is a separate balance. Foreign income deposits directly into the relevant currency slot.
When making personal purchases in a foreign currency:
- Spend from your existing balance in that currency (free, no spread)
- If you lack enough, auto-convert the shortfall from your home currency (0.275% spread)
- If both are insufficient, the transaction is rejected
Foreign Income
Income from foreign corporations is handled differently by type:
- Dividends: Automatically converted to your home currency at the market-maker rate (0.275% spread) when forex is enabled. There is no per-holding preference — this conversion is automatic.
- Bond coupons: Paid in the bond's denomination currency and deposited directly into your personal balance in that currency. No auto-conversion.
- CEO salary: Paid in the corporation's home currency and deposited directly into your personal balance in that currency. No auto-conversion.
How Forex Affects the Game
Cross-country investments: If you buy JP stock at ¥26,900 per share and the yen strengthens against your home currency, your holding is worth more in home-currency terms even if the share price didn't move.
Corporate economics: Corporation revenues and costs are denominated in the corporation's home currency. When a US corporation's sector operates in Japan, the revenue is earned in USD (the corp's currency) but taxed at Japanese rates against a JPY-denominated tax base. Cross-country HQ relocations trigger a full treasury conversion at the spot rate.
Central bank policy: The Central Bank Chair sets the prime rate, which feeds directly into the macro target formula. A rate hike makes the currency stronger over the following game months.
Bond prices: Sovereign bonds are priced using the current prime rate. When a central bank changes rates, existing bond prices move — and so does the exchange rate. Both effects compound for cross-country bond holders.
Speculation Strategy
The standard forex speculation flow:
- Identify a country with weakening fundamentals (high inflation, slow growth, low rates)
- Wait for the currency to reach a cycle low
- Buy a meaningful position (limit orders save on spread)
- Invest in that country's assets while holding the cheap currency
- Sell when the currency recovers or fundamentals improve
The 24-turn volume lookback means heavy buying gradually pushes the rate up, accelerating your returns — but also attracting other speculators who may exit before you.
See also: Central Banks, Stock Market, Sovereign Bonds