What if it wasn't just purely cosmetic? I mean currently all of CN uses the UCN$ (Universal Cybernations Dollar), which is just what I'm calling the currency in-game (since no matter if you choose dollars, pounds-sterling, or dongs, they're all worth the same exact amount, with all of them having a 1:1 exchange rate with each other). If sanctioned alliances had their own currencies, then they could have different exchange rates. Just like in RL, exchange rates would be based on supply and demand, with currencies more in demand being worth more.
The following formula would determine exchange rates:
1 unit of a given currency : (1+((total units of a given currency sent or received via foreign aid in a given day/total units of all currencies sent or received via foreign aid in a given day)*10)) units of any other currency
Per this formula, if 20% of all units of currency sent or received in a given day are Pacifican Francos, then the exchange rate would be 1 Pacifican Franco to 3 units of any other currency (1+(.2*10)= 3). If a Pacifican using Pacifican Francos as his national currency sends PF 1M to a Polaris nation using Polaris Dollars, then the Polaris nation would receive P$ 3M, as the game would automatically convert one currency into another using the current exchange rate. PF 1M would also be worth UCN$ 3M (or, in other words, 1M Pacifican Francos would be worth 3M of any of the non-sanctioned-alliance currencies). Nations would be able to freely choose a non-sanctioned-alliance currency (i.e., UCN$) or one of the sanctioned alliances' currencies. Exchange rates would be re-calculated each day at update based on the percentage of each currency that was sent or received via foreign aid during the day out of the total units of currency sent or received during that same day. Also, UCN$ would also have their exchange rate calculated in this way, so UCN$ will tend to be a very valuable currency because most nations will likely use the currencies that are currently in the game, which are all considered UCN$.
When buying things from one's nation screen (i.e., tech, infra, wonders, improvements, military units, etc.), every nation will be treated as though it is using UCN$ as its national currency so that if 3M Pacifican Francos are worth 9M Polaris Dollars, someone using Polaris Dollars that receives 3M Francos would have 9M regular CN currency units (i.e., the equivalent of 9M of whatever currency we use in-game currently) to spend on stuff. Thus, more valuable currencies have higher purchasing power because when they are exchanged into other, comparably less valuable currencies, they can buy more infra, tech, land, troops, nukes, improvements, wonders, etc. However, there's also an element of self-balancing going on here, because if a currency is really valuable, less of it can be used to get the same stuff that would've taken more of another currency, so the total amount of that currency sent or received each day will tend to decrease over time, thus reducing its value; once its value is reduced, more of it will be required to get the same stuff that would've taken less of another currency, so it's value will again rise.
Also, currencies that are widely adopted among the nations in the game will tend to be worth than those that are only adopted by one alliance's members because more nations using the currency means more potential for that currency to be sent or received in aid in a given day.
Sanctioned alliances may also want to get the color teams they are based on to use their currency so that their currency becomes more valuable, and thus their members and their team-mates can tech deal at an advantage when compared to other teams whose nations use less valuable currencies.
In the above example, a Pacifican nation using Francos would be able to pay significantly less for tech in tech deals because in a standard $3M/100T deal, that nation would only need to send PF 1M to receive 100T (since PF 1M would be worth 3M of any other currency). Since tech is the most valuable commodity in the game, the addition of exchange rates means that nations using more valuable currencies would be able to afford more tech and thus have more power.
Edited by HM Solomon I, 18 February 2013 - 12:07 AM.