Parise, The Rosbera National Currency

The Parise (symbol: ₱; code: PRS) is the currency used in Rosbera, Introduced shortly after the federal economic reforms, the Parise was designed to unify the fragmented monetary system that once plagued the Rosbera economy, which was previously reliant on barter, multiple local currencies, and foreign currency reserves.

Historical Background

Before the Monetary Reform Act of 1845, Rosbera economy was decentralized, with various city-states and guilds issuing their own currencies. This system was inefficient and led to rampant inflation, economic isolation, and difficulties in trade. The creation of the Parise under Protector Friedrich IV was a crucial part of the reforms that brought economic stability and centralization. The Parise was initially tied to the value of gold and silver to instill confidence and trust among citizens and international traders.

The Parise was defined as 2 grams of pure gold (0.064 troy ounces) or 30 grams of silver (0.964 troy ounces), following the bimetallic standard of the time, and the government issued both gold and silver coins, along with paper notes for large transactions.

The Role of the Central Bank

To ensure control over monetary policy, the Rosbera National Reserve Bank (RNRB) was established. It became the sole issuer of currency in the republic, with private and city-state mints losing their rights to produce money. The RNRB was tasked with maintaining economic stability, controlling inflation, and setting interest rates to promote both domestic growth and foreign investment.

Shift to a Managed Currency

Like many modern economies, Rosbera moved off the gold standard in the early 20th century, transitioning the Parise to a fully managed fiat currency. This change allowed the Parise to be more flexible, enabling the RNRB to adapt the money supply to the Rosbera evolving economy. The value of the Parise now fluctuates based on market forces in the global foreign exchange markets, where it is traded against major global currencies such as the Nerasian Nares, US dollar, euro, and yen.

The Parise is subject to international market forces, with its value driven by supply and demand for goods, services, and investment opportunities in Rosbera. The country's primary exports—wine, coffee, luxury textiles, and coal mining —generate strong demand for the currency, boosting its global standing.

In the Rosbera Civil War, which erupted recently due to political unrest and deep economic inequality between the urban centers and the countryside, the Parise suffered a dramatic devaluation, sending shockwaves throughout the nation and its economy. The conflict was triggered by growing dissatisfaction among various provinces over the central Rosbera General Election which was won by the RRP’s Pierre Lefaut, especially in farmer regions that felt exploited by the capital. The civil war divided Rosbera, severely impacting both public confidence in the currency and the overall economy.

Immediate Effects on the Parise

As the conflict broke out, the Rosbera National Reserve Bank (RNRB) struggled to maintain control over the currency. Several key events during the civil war led to the weakening of the Parise:

1. Disruption of Trade and Industry: The fighting devastated major industrial centers and transportation routes, bringing domestic production and exports to a halt. Rosbera’s most lucrative sectors, including wine production , coal mining and textiles, were severely impacted, reducing the demand for the Parise on international markets. The destruction of critical infrastructure, including airports and factories, further damaged the economy.

2. Regional Factions Issuing Currency: Rebel provinces in support of RDC, began issuing their own regional currencies to finance their war efforts. These alternative currencies destabilized the monetary system, leading to further fragmentation of the currency supply. In response, the RNRB printed excessive amounts of Parise to fund the central government’s military efforts, leading to hyperinflation.

3. Loss of Confidence: As the conflict deepened, public trust in the Parise collapsed. Citizens hoarded foreign currencies such as the Nerasian Nares, US dollar, euro, and gold, further eroding the value of the Parise. Black markets thrived, with many regions and cities relying on barter systems or foreign currencies to conduct basic transactions, bypassing the Parise altogether.

4. Skyrocketing Inflation: with the war currently going on and devastation only increasing, inflation surged, reaching as high as 300% annually. The purchasing power of the Parise plummeted, leading to widespread poverty, unemployment, and shortages of essential goods. Prices for food, fuel, and medicine skyrocketed, making it difficult for citizens to meet basic needs. The central government’s decision to impose price controls and rationing only worsened the economic crisis.

Currently the Economy is extremely dependent of foreign support, more precisely, the Nerasian Empire and its allies, one of Pierre Lefaut's few allies to not condemn him for the way he is conducting the war.

Credits:: thanks very much to my bro Gustav from Nerasian Empire, who used his in-depth knowledge of economics to develop a currency for me and the entire economy behind it, thanks bro.