Elias Dinar
The Silver Dinar, commonly known as the Elias Dinar (symbol: SD) is the official currency of United Elias and has been in circulation since first issued by the Federal Bank in 1879, shortly after the nation became independant. Its name is derived from the currency of The Ottoman Empire and it is termed as 'silver' as it has always been linked to the value of silver. In 1959, the currency was re-issued, and for the first time coins with silver content were no longer issued, and was for a short time refered to as the new dinar. From then on, the value of SD1 has been pegged to the value of one silver ounce. The pegging is periodically adjusted, and now stands at SD1/5 XAG Ounce.
Due to the fact that UE's balance of payments situation has almost always produced a large net surplus, and the fact that year on year values can be unstable, given the fluctuating price of crude oil, a fixed exchange rate mechanism has always been seen as the best way to preserve stability and minimise inflationary pressures. The Federal Bank stands ready to maintain the fixed parity through direct intervention (i.e., via sale/purchase of foreign exchange in the market) or indirect intervention (e.g., via aggressive use of interest rate policy, imposition of foreign exchange regulations, exercise of moral suasion that constrains foreign exchange activity, or through intervention by other public institutions). Flexibility of monetary policy, though limited, is greater than in the case of exchange arrangements with no separate legal tender and currency boards because traditional central banking functions are still possible, and the monetary authority can adjust the level of the exchange rate, although this is done relatively infrequently.
Fixed Ratio:
5 Silver Ounces (XAG) = 1 Elias Dinar (SD)
Current Exchange Rates:
27/10/04
SD1 = $1.44 USD
SD1 = £0.79 GBP
12/12/04
SD1 = $1.34
SD1 = £0.70
21/03/05
SD1 = $1.42
SD1 = £0.75
11/06/05
SD1 = $1.45
SD1 = £0.80
Notes are produced in SD1 SD5, SD10, SD20, SD50 and SD100 denominations while smaller notes are made for sub-unit denominations, SD-0.05 SD0.10, SD0.25 SD0.50. There are no coins in official circulation.
