What determines the currency exchange rate?
Anyone can make a market for the Millennium Dollars®. Hence, the prevailing currency exchange rate is actually determined by the best available quotation in the marketplace at any point in time. However, to get things going, the sponsor will initially use the weighted average of sales price of Millennium Dollars® at auction on the Internet. As the currency exchange rate narrows, the sponsor will announce what it is willing to pay for the MR$ on its Web site at: Selling MR$ . Historically, when markets begin for new financial instruments, the spread begins wide but narrows as the volume increases. Those who purchase MR$ early-on should do well; since they should be able to purchase MR$ at a larger discount at the auctions; and then sell them at a smaller discount at a later date, if not spend them in the marketplace at the indexed value. In the interim, they earn an inflationary adjustment on the indexed value of the MR$.
