Monetary Policy
URA MONETARY POLICY
The Ura monetary system was designed by CUO to be methodical, ethical, hierarchical, flexible, and innovative so that CUO ensures an expectation of successful completion of every Ura transaction by providing conducive environment for services and capabilities that give the Ura Monetary System its core features of ease of exchange, convertibility, instant settlement, continuous availability, privacy, and a high degree of safety.
The monetary policy underpinning the Ura Monetary System comprises entities, mechanisms, protocols, and policies that guarantee the successful completion of Ura issuance, distribution, exchange, transfer, and settlement (“Ura Transactions”) in a well-supported transacting environment (the “Ura Monetary System Transacting Environment” or “Ura Monetary System”); conveyance of Ura from one entity to entity without devaluation and counterfeit free, parties are secured, identifiable and verifiable; Ura transactions are trackable, transparent, and immutably recorded; giving credibility for every Ura transaction in the Ura Monetary System. This ensures Ura is exchangeable for fiat and other forms of money, coexists with and complements existing forms of money, and retains value.
URA MONETARY SYSTEM
The URA Monetary System includes:
Competent institutions managing Ura are equivalent to similar institutions in the fiat monetary system to govern the utilization and conveyance of Ura without devaluation and free of counterfeits.
Governance policies and values are designed to maintain the Ura and the Reference Assets value.
Interactions with existing fiat monetary system regulatory frameworks and authorities.
The Ura Monetary System requires participation at every level by competent and qualified entities or institutions (“participants”) who understand their roles fully and offer services and products needed for safe and sound Ura management and distribution. CUO’s position in the Ura Monetary System is that of a global supervisory authority and CUO’s role includes overseeing the management of Global Reserves being the initial reserves and subsequent reserves (“Reserves”) to maintain their value into the future, provide global oversight over Ura, and set the Ura Global Monetary Policy including the Ura Monetary System participation rules.
URA GLOBAL MONETARY POLICY
At all times Ura in circulation is equal to market demand to the extent that the market demand can be satisfied without devaluing Ura. CUO sets the Ura Global Monetary Policy (“Ura Monetary Policy”) in its capacity as the supervisory authority over the Ura and Ura Monetary System. The three tools used by CUO to implement Ura Global Monetary Policy are open market operations, discount rate, and reserve requirement.
CUO uses open market operations to influence the supply of Ura in the Ura Monetary System. To increase reserves, the CUO directs relevant institution in the Ura Monetary Structure to acquire financial instruments and pay for them by depositing them in the account maintained at the relevant levels of the Ura Monetary Structure. To reduce reserves, CUO directs the sells financial instruments. By the direction in the trading financial instruments, CUO influences the amount of Ura in the Ura Monetary System, which affects the rate at which financial institutions borrow Ura from each other. Central Ura borrowing rate is sensitive to changes in the demand for and supply of Ura in the URA Monetary System.
Interest rate is charged at the direction of CUO to eligible financial institutions on short-term loans and swaps.
URA NATIONAL MONETARY POLICY
The Ura National Monetary Policy refers to the monetary policy that Ura Central Bank must comply with based on the local monetary policy of the nation or geographical territory, they operate in as guided by the Ura Global Monetary Policy set by CUO. The three tools used by eligible financial institutions to implement Ura National Monetary Policy are open market operations, discount rate, and reserve requirement.
- Ura Central Banks use open market operations to influence the supply of Ura in the territory they operate in. To increase reserves, eligible financial institutions buy financial instruments and pay for them by depositing them in the account maintained at eligible financial institutions by the primary dealer’s bank. To reduce reserves, eligible financial institutions sell financial instruments and collect from those accounts. By trading financial instruments, eligible financial institutions influence the amount of Ura in the territory they operate in, which affects eligible financial institutions’ fund rates at which other local retail financial institutions borrow Ura from each other. Central Ura borrowing rate is sensitive to changes in the demand for and supply of Ura in the territory they operate in.
- Interest rate is charged by Ura Central Banks to local retail financial institutions on short-term loans and swaps.
- Reserve requirements that local retail financial institutions must maintain either in their vaults or on deposit at eligible financial institutions.
CONCLUDING REMARKS
Ura was originally intended to be a utility for the assignment of Resource Mobilization Inc Receivables (“RMI Receivables”), but the sheer volume of the Receivables tokenized transformed Ura into a monetary system. Though Fiat has delivered sustained economic growth since its introduction, it is obvious that the work of a better life for all is not completed, there is room for complement. Ura seeks to be that complement to Fiat. Ura unlike fiat is privately owned and issued based on private money. Therefore, the primary objective of any Ura Monetary policy is the preserve the value of the assets on which Central Ura is drawn and in the process preserve Ura value for the Ura Monetary System.