Kaalakiota Corporate Bank May Devalue Scrip | EVE Online

Kaalakiota Corporate Bank May Devalue Scrip

2010-03-30 - Von Svarthol

Nonni - As Kaalakiota's corporate currency board meets for the third straight day, rumors continue to circulate that the company is considering a significant devaluation of their corporate scrip. Sources within the company's central bank say that the board is considering this step due to a sudden spike in Kaalakiota scrip-to-ISK transfers, which corporate economists are blaming on black market currency exchanges in the Intaki Syndicate.

No megacorporation has considered such a step in nearly two decades, since Ishukone took a similar step in YC 93 to mediate an ISK shortage. The rumors have only compounded the problem, as many Kaalakiota citizens have begun exchanging their scrip for ISK at the bank limit in anticipation of the move, further sapping the company's reserves.

Serge LaFleur, an economist at the University of Caille, says the move could have far-reaching implications for Kaalakiota and the rest of the Caldari economy. "This is usually seen as a sign of desperation, due to the panic it can set off in the general populace," he explained. "If Kaalakiota is short enough on ISK that it's considering such a move, the worry is always there that it won't be enough, and the company may have to turn to Caldari Funds Unlimited for a loan to keep the company from defaulting on financial obligations."