Price

Q:  We have a concern about operations in Sereno.  Our concern is with the exchange rates.  With the limits currently set in the game, we are not able to keep our prices up with the current exchange rate.  We are open to any suggestions you might have to help us keep our prices in line with rates.  Thank you.

A:  You don't necessarily have to keep Sereno prices up with exchange rates.  Costs within Sereno are affected by the Sereno inflation rate--not by the exchange rate.  Costs of imported goods are affected by the inflation rate in the country from which the are exported, and the exchange rate.  The other side of the coin is that costs of goods exported FROM Sereno become less when paid for with dollars.

The limit on price increases in Sereno is still 40 percent in any quarter.  That would amount to a tremendous amount of price inflation in a year.  Compounded quarterly, 40 percent per quarter equals about 384 percent per year.