Chiemgauer is the name of a regional local currency

Local currency

In economics, a local currency, in its common usage, is a currency not backed by a national government , and intended to trade only in a small area. As a tool of fiscal localism, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or...

 started in 2003 in Prien am Chiemsee

Prien am Chiemsee

Prien am Chiemsee is a municipality in the district of Rosenheim, in Bavaria, Germany.-Geography:It is situated on the western shore of the Chiemsee lake, 16 km east of Rosenheim.-Famous resident:...

, Bavaria

Bavaria

Bavaria, formally the Free State of Bavaria is a state of Germany, located in the southeast of Germany. With an area of , it is the largest state by area, forming almost 20% of the total land area of Germany...

, Germany

Germany

Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

. It is named after the Chiemgau

Chiemgau

Chiemgau is the common name of a geographic area in Upper Bavaria. It refers to the foothills of the Alps between the rivers Inn and Traun, with lake Chiemsee at its center. The political districts that contain the Chiemgau are Rosenheim and Traunstein...

, a region around the Chiemsee. The Chiemgauer program is intended to promote local commerce. The Chiemgauer operates with a fixed exchange rate: 1 Chiemgauer = 1.

Creation and objectives

Christian Gelleri, a high school teacher, started this project with his students who are in charge of designing and printing vouchers, administration, accounting, advertising and other services. Chiemgauer is member of a regional currencies' network called Regiogeld e. V. (regiomoney-association).

The Chiemgauer is intended to:

1. Employment creation: students, unemployed and volunteers are hired to work, earning some allowances.
2. Promotion of cultural, educational and environmental activities: the Chiemgauer system supports non-profits who work for such purposes
3. Promotion of sustainability: organic food and renewable energy among others
4. Strengthening the solidarity: enhancing the human relationship between local shoppers and businesses
5. Stimulation of local economy: Chiemgauer retains purchasing power within the region better than the euro
   Euro
   The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
   
    and favors local small businesses, stimulating transactions by the demurrage
   Demurrage (currency)
   Demurrage is a cost associated with owning or holding currency over a given period of time. It is sometimes referred to as a carrying cost of money. For commodity money such as gold, demurrage is in practice nothing more than the cost of storing and securing the gold...
   
   .

Currency issue, exchange and acceptance

Bills of 1, 2, 5, 10, 20, and 50 Chiemgauer are issued. To maintain an individual bill's validity, a "scrip

Scrip

Scrip is an American term for any substitute for currency which is not legal tender and is often a form of credit. Scrips were created as company payment of employees and also as a means of payment in times where regular money is unavailable, such as remote coal towns, military bases, ships on long...

" corresponding to 2% of the banknote value must be paid every three months. (This system, called demurrage

Demurrage (currency)

Demurrage is a cost associated with owning or holding currency over a given period of time. It is sometimes referred to as a carrying cost of money. For commodity money such as gold, demurrage is in practice nothing more than the cost of storing and securing the gold...

, is a form of currency circulation tax and was invented by Silvio Gesell

Silvio Gesell

Silvio Gesell was a German merchant, theoretical economist, social activist, anarchist and founder of Freiwirtschaft.-Life:...

.)

Chiemgauer, considered to be equivalent to the euro, circulates as follows within Prien and neighboring towns:

• Non-profits: entitled to purchase 100 Chiemgauer at €97 and resell them at €100, therefore earning €3 to be spent for their own activities.
• Shoppers: exchange €100 for 100 Chiemgauer at a non-profit they support, allowing the non-profit to benefit from the preferential purchase price. Also, spend Chiemgauer at local businesses at face value, therefore helping both local non-profits and businesses without any further cost.
• Businesses: accept 100 Chiemgauer at face value and spend them for their own purchases or exchange 100 Chiemgauer into €95, losing 5% for commission but earning more by attracting Chiemgauer members to their products and/or services. Of this, €2 is devoted to administrative costs, and €3 replaces the original discount to the non-profit.

Statistics

:

• Number of members: (2007:
• Number of businesses: 600
• Amount of Chiemgauer in circulation: Chiemgauer (May 2009)
• Turnover (2008): Chiemgauer (2007: Chiemgauer, 2006: Chiemgauer)
• Income for non-profit organizations (2008): Chiemgauer (2007: Chiemgauer, 2006: Chiemgauer)
• Total income for non-profit since inception 2003: euro