Monetary Policy

The role of the Central CRU Organization (“CRO”) is to enable a well-supported transacting environment for all to utilize Cru in an ecosystem that integrates smoothly with existing financial ecosystems and macroprudential policies.

 

Cru is money distributed after the order of commodity monetary system like fiat (the “Cru Monetary System” or “Cru Ecosystem”). Cru Monetary System at a minimum meets all the equivalent structures, services, support, and regulative requirements of the fiat monetary system within the context of current technological advances, making it possible for Cru to be widely adopted and utilized.

 

Cru Monetary Policy – Overview

Cru monetary system was designed by CRO to be methodical, ethical, hierarchical, flexible, and innovative so that CRO ensures an expectation of successful completion of every Cru transaction by providing services and capabilities that give the Cru ecosystem its core features of ease of exchange, convertibility, instant settlement, continuous availability, privacy, and high degree of safety.

 

The monetary policy underpinning the Cru ecosystem comprises of mechanisms, protocols, and policies that guarantee the successful completion of Cru issuance, distribution, exchange, transfer, and settlement (“Cru Transactions”) in a well-supported transacting environment (the “Cru Monetary System Transacting Environment” or “Cru Ecosystem”); conveyance of Cru from one entity to entity without devaluation and counterfeit free, parties are secured, identifiable and verifiable; Cru transactions are trackable, transparent, and immutably recorded; giving credibility for every Cru transaction in the Cru ecosystem. This ensures Cru is exchangeable for fiat and other forms of money, coexist with and complements existing forms of money, and retains value.

Cru Ecosystem – Overview

The Cru Ecosystem includes:

 

  • Competent institutions managing Cru are equivalent to similar institutions in the fiat monetary system to govern the utilization and conveyance of Cru without devaluation and free of counterfeits.
  •  Governance policies and values are designed to maintain the Cru and the Reference Assets value.
  •  Interactions with existing fiat monetary system regulatory frameworks and authorities.

 The Cru ecosystem 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 Cru management and distribution. CRO position in the Cru ecosystem is that of a global financial institution like the world bank, and CRO’s role is the management of Global Reserves being the initial reserves and subsequent reserves (“Reserves”) to maintain their value into the future without devaluation, provide global oversight over Cru, and set the Cru Global Monetary Policy including the Cru Ecosystem participation rules.

Cru Global Monetary Policy

At all times Cru in circulation is equal to market demand to the extent that the market demand can be satisfied without devaluing Cru. CRO sets the Cru Global Monetary Policy (“Cru monetary policy”) in its capacity as the supervisory authority over Cru and Cru Ecosystem. The three tools used by CRO to implement Cru Global Monetary Policy are open market operations, discount rate, and reserve requirement.

 

  • CRO uses open market operations to influence the supply of Cru in the Cru Global Ecosystem. To increase reserves, CRO buys financial instruments and pays for them by making a deposit to the account maintained at CRO by the primary dealer’s bank. To reduce reserves, CRO sells financial instruments and collects from those accounts. By trading financial instruments, CRO influences the amount of Cru in the Cru Global Ecosystem, which affects the CRO funds rate at which financial institutions borrow Cru from each other. The CRO funds rate is sensitive to changes in the demand for and supply of Cru in the Cru Global Ecosystem. 
  • The discount rate is charged by CRO to eligible financial institutions on short-term loans.
  • Reserve requirements that eligible financial institutions must maintain either in their vaults or on deposit at CRO.

Cru National Monetary Policy

The Cru National Monetary Policy refers to the monetary policy that eligible financial institutions such as a central bank must comply with based on the local monetary policy of the nation or geographical territory, they operate in together with the Cru Global Monetary Policy. The three tools used by eligible financial institutions to implement Cru National Monetary Policy are open market operations, discount rate, and reserve requirement.

 

a. Eligible financial institutions use open market operations to influence the supply of Cru in the territory they operate in. To increase reserves, eligible financial institutions buy financial instruments and pay for them by making a deposit to 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 Cru in the territory they operate in, which affects eligible financial institutions’ fund rate at which other local retail financial institutions borrow Cru from each other. The eligible financial institutions’ funds rate is sensitive to changes in the demand for and supply of Cru in the territory they operate it. 

b. The discount rate is charged by eligible financial institutions to local retail financial institutions on short-term loans

c.  Reserve requirements that local retail financial institutions must maintain either in their vaults or on deposit at eligible financial institutions.

  

 Concluding Remarks

Cru was originally intended to be a utility for assignment of Resource Mobilization Inc Receivables (“RMI Receivables”), but the sheer volume of the Receivables tokenized transformed Cru into a monetary system. Though Fiat has delivered sustained economic growth since its introduction, it is obvious that the work of better life for all is not completed, there is room for the complement. Cru seeks to be that complement to Fiat. Cru unlike fiat is privately owned, issued based on private money. Cru does not have the pressures of fiat and as a result, holds the potential to be better stable money for global development. The expectation is Cru is to be utilized alongside fiat and all other forms of money for the common good. It shall have all the safeguards of fiat but with the sole purpose of being reliable money.

Cru is money, it is not a cryptocurrency, security, or collective investment scheme and does not grant users voting or ownership rights, return on investment, and profit or passive income without its utilization.

Scroll to top

Education Template