The Seratofian Zakka (Seratofian: Sératofas Zakka) is the national currency of Seratof since 1954. Issued and controlled by Bank of Seratof, the Zakka is the sole legal tender and medium of exchange within the country. The name "Zakka" comes from the traditional Seratofian unit of measure of the same name for silver. Subdivided into 100 Tálas, the Zakka has been a decimal currency since its inception. Upon joining the Pan-Artemian Coalition in 2013, the Zakka has become integrated into the PAC currency basket system.
The Zakka was first issued in 1956 to replace the Auja which had suffered massive hyperinflation at a rate of 1,000,000 Auja to 1 Zakka. The gold standard, in which Seratof temporarily left in 1949, was scrapped completely, transforming the currency into a real fiat currency. Decimalization occurred upon the creation of the currency. The first Zakka was also plagued by inflation, needing to be redenominzed two times in its history, once in 1959 and once more in 1976. Afterwards, the Zakka retained its stability in the currency market.
Nowadays, the Zakka is the only legal currency that could be circulated in Seratof, and all prices must be listed in Zakka. The use of the currency outside of Seratof is fairly limited with the exception of some amenities, goods, or services offered near the Seratof-Velselexo border accepting both Zakka and Kasp as payments. In late 2019, the governor of the central bank confirmed a new banknote family to be issued in 2020 starting with the 100 and 500. They were both released on the 17th of April 2020.
History[edit | edit source]
Introduction and early years (1954-1960)[edit | edit source]
After a series of uncontrollable fiscal management and money printing under the socialist People's Party government between 1949 and 1954, the Seratofian Auja entered hyperinflation in March of 1954 after a worrying financial statement released by the Bank of Seratof. To keep up with demand, the central bank ordered the issuance of larger denominations, further increasing the money in circulation whilst halting the production of goods and services as they continue to stagnate due to unprecedented rising costs. The resignation of President Xaidár Kűšman in May 1954, further destroyed all public and international trust of the Auja, with some estimates placing the exchange rate at 1,750,000 Aujas per ACU.
In an effort to revive the Seratofian economy and regain public trust, the newly sworn-in President Árnab Arša, instantly ordered the introduction of a new currency by the 1st of July 1954. The name Zakka was chosen and passed in parliament on the 30th of June with one Zakka equal to one million Aujas. New banknotes were released to the public on the same day, and were hastily designed with poor safety and paper qualities. The issue of counterfeiting became a major issue in the early days of the currency. The massive amounts of Zakkas being printed as well as the abundant amounts of counterfeits circulating diminished the purchasing power of the national currency once more, entering a high rates of inflation by early 1955. In response, larger denominations were printed and distributed.
By March of 1955, the governor of the central bank announced plans of redenomination for the Zakka instead of outright replacing the 8 month old currency. Improved designs, paper quality, and security features were announced in June to be released on the 1st of July 1955, exactly one year after the introduction of the currency. The Zakka was redenominated 1000:1, and for several years the "New Zakka" circulated as the country's official currency. The name "new" was finally removed in 1960 after a five-year transition period.
Growth and second redenomination (1960-1976)[edit | edit source]
Upon the removal of the Zakka from the transition period, the currency hovered at a rate of 4.8 Zakkas per ACU. Old banknotes overstampped with the seal of the treasury were removed from circulation starting from 1961, and a new banknote family was released that same year. The use of the new Zakka was fairly limited, owing to lessening public trust in the government and by default the currency. Many large-scale transactions were still done in third-party foreign currencies. To combat this, the government placed a mandatory 50% requirement for importers paying in the foreign exchange market to store their assets to the government to fill in treasury reserves. This plan was massively cut back to a 15% commission later that same year as companies were operating at low frequencies due to a lack of resources.
Relative stability (1976-2007)[edit | edit source]
Modern Zakka (since 2007[edit | edit source]
Banknotes[edit | edit source]
Over the course of its circulation, the Zakka has had 11 series of banknotes, issued in three different stages (determined by redenominations).
|Series||First Release||Final Withdrawal||Currency|
|1||1 July 1954||1 January 1956||First Zakka|
|2||1 July 1955||1 January 1961||Second Zakka|
|3||10 May 1960||1 January 1972|
|4||15 January 1967||1 January 1974|
|5||9 February 1972||26 April 1978|
|6||26 April 1976||1 January 1989||Third Zakka|
|7||30 June 1983||1 January 2001|
|8||17 December 1995||1 January 2013|
|9||1 October 2007||1 January 2023|
|10||18 May 2013||1 January 2030|
|11||17 April 2020||-|
9th series (2007-2013)[edit | edit source]
The 9th series of the Zakka was announced in October 2007 during the transitional presidency led by President Marxalofa. The notes would be redesigned and be modernized, shrinking the overall size of individual banknotes and adding security features missing from the previous denominations. For the first time since 1972, banknotes would depict notable individuals in banknotes as opposed to the past few series, announced by the central bank in a separate report. The banknotes would each possess a different main color to differentiate it quickly from other bills, a practice dropped since the 7th series. The paper quality was also increased by making the sheets thicker and of a different composition. The first banknote released was the 5 Zakka bill, and released in incremental order on the first of every month starting from October.
All banknote designs were revealed to the public on the 18th of August 2007 through an official event. Observers comment on the stark contrast of the series' appearance in relation to the previous one, commenting on the overall modern look of the banknote when compared to the previous one mimicking banknote styles of the early 20th century. The series kept all previous denominations.
10th series (2013-2020)[edit | edit source]
On February 18th 2013, parliament approved a bill to update the notes of the Zakka. The new Zakka designs were fully revealed to the public on the 19th of April 2013 and released on the 18th of May 2013. This is the first time the Bank of Seratof released all banknote denominations on the same day, unlike other series where a gradual release could be observed. The banknotes contained less detail than the previous series, but gave it a more modern look and feel. The banknotes were also greatly reduced in size to cut costs. Several security features were also omitted citing budget constraints.
All portraits except the 100 and 500 were changed. The 10th series is also the first series to not feature a Zs. 5 banknote, replacing it with a coin.
The banknotes were poorly received upon inception. Many have commented on the lower quality ink and color as well as the overall decrease in design elements and composition, making the banknotes very easy to counterfeit.
11th series (2020-present)[edit | edit source]
The 11th series of the Zakka and the 6th in third Zakka, was announced to the public by central bank Governor Míkail Xolorédi on the 14th of November 2019 in an official press statement conducted by the Bank of Seratof. Within the press reports, the update to the currency notes was seen as vital considering the increasing demands of higher-security and more long-lasting banknotes. On the 1st of December, the Seratofian parliament formally signed into law regarding the redesign and update towards the Zakka. The introduction of the banknotes would be done in three phases, with the 100 and 500 notes being released first followed by the 20 and 50, and finally the 10 and the 200 over a 1,5 year period.
The 100 and 500 notes were revealed to the public on the 15th of March 2020. The color scheme of the 11th series were retained, and were made more vibrant and lively to quickly differentiate between denominations, as well as the enlarging of the denomination for ease of visibility. Features designed for the visually impaired were also added in this series. Many commentators and designers praised the design and the composition, citing it as one of the best banknote designs to ever be released by the Bank of Seratof, with some others claims going as far as the most beautiful banknote in Anterra. The treasury estimates that the new bills are four times more expensive than the previous banknotes to produce owing to its higher paper and ink quality as well as the addition of several key anti-counterfeiting measures.
In an official letter from the central bank, three portraits depicted on currency notes will be retained, and three more will be changed. The 100 and 500 bill have been revealed to keep their original portraits from the previous series, with the 50 bill also retaining the previous portrait. The rest will feature a variety of new prominent Seratofians in an effort to become more inclusive towards all professions and contributions. These portraits were finally announced one week after the release of the 100 and 500 bills.