Sunday, October 11, 2009

LFS moves to revalue currency

LISTON FREE PRESS-- In an surprise move, the Finance Minister introduced a government-backed bill that would require the national currency to be backed by tangible gold reserves.

Lewis Tredegar, MNA and Minister of Finance held a brief press conference. "This bill would require that the Central Bank of the LFS hold gold reserves that are actually redeemable upon presentation of a Rand. This government has heeded the advice of many leading monetary economists, and we have reached the conclusion that a fiat currency which is currently arbitrarily set equal to the Cruisanian Crown, is not sustainable for our republic."

Investors reacted cautiously to the news, as stock indices on the Liston Stock Exchange (LSE) fell nearly ten percent on Monday in reaction to the news, although mining stocks and gold exchange traded funds rallied nearly 20 points by the end of the day.