Could a Single Currency Work?

Single world currency can really help people in reducing the costs to goods and products. With the help of single world currency travelling would be convenient. According to my point of view, if we will have a common currency or single world currency then choosing a bank will be a lot more easier and sending out money to somewhere else will be a lot more hassle free. Similarly, single world currency will surely help us in promoting free trade with our neighbouring countries.

In addition to the single world currency benefiting the consumer, a single currency can also benefit the companies themselves. If companies remain outside the single world currency, then disadvantages to them are caused, as they have to compete with single world currency-member ones who have reduced transaction costs. This basically means that businesses that do not practice the single world currency therefore lose money because of transaction costs. (Dermine, 76-79)

The world financial markets are becoming an increasingly global marketplace, and emerging economies are being pulled into this rapid pace of financial innovation and globalization at varying speeds. The choice whether to be integrated or not does not solely rest in these countries alone. The big strides in telecommunications and information technology have made it increasingly possible for any nation to insulate itself from the rest of the world.

Europe has pioneered a major change in currencies - they have eliminated the use of national currencies and replaced it with a single currency for almost the whole of Europe. It is a fact that countries aim to have international monetary cooperation and to keep their exchange rates stable due to the globalization, internationalisation, and financial market integration phenomena but no other group of countries have made an attempt as bold as Europe's. So why did we really need single world currency.

Implementing a single currency should, in theory, may not allow easier prize comparisons between countries. (Dermine, 76-79) This, as we know, is called price ambiguity. The implementation should make it harder for companies to get away with charging artificially high prices for goods and services across the union. With the introduction of a single currency, forgery will be more likely to happen. If countries used the same single currency, then it would be anticipated that they may not trade with a member country. On the subject of transaction costs and exchange rates, the single currency can give loss to its holders. A large percentage of the revenue will go waste. If the single currency will be introduced, then there are few chances of economic losses. (Estrada, 73-75)

There has been a clamour for the introduction of a single universal currency alleged to effectively ensure the progress of international economies. At any time economic and political stability cause delay in the expansion of international trade, attempts to convert to a single monetary standard will be conducted in no time. The members of the European Union have, in 2002, introduced the Euro, a single currency that replaced national ...