by Ray Burke

Created on: October 13, 2008

Do we need a single global currency?

I think it was Margaret Thatcher who said we already have a single global currency it's called the US dollar. That was in relation to the impending Euro. Not that the dollar is performing at its best at the moment, but it does get around, albeit it in tandem with other local currencies. And there's the rub; a single global currency sounds good and may make sense, but after investigating both sides of the issue, I don't think it will work for several reasons.

The Pros:

A single global currency would get rid of exchange rates and a myriad of other languishing currencies, thereby making financial trading easier and less perilous in less secure times. There'd be no more news reports of dollars to sterling; yen to euros; or roubles to rupees. This would also get rid of a whole industry of money changers and dealers, possibly leading to a more streamlined and manageable banking system. That could be a good thing. Would that have made this financial crisis better to deal with, with no foreign exchange rates and foreign money devaluations to live through? A single global currency couldn't be devalued against another country's making any funding more accessible.

Many countries around the world have updated their currencies with a few minor disruptions (e.g. Britain's shillings to sterling, Continental Europe's conversion to Euros), so adopting a single global currency maybe one continent at a time may help ease any disruptions.

Having a single currency would benefit financial security as black markets of alternative currencies would cease. Since everyone would own and know what a legitimate bill/coin looked like, it would be far easier to spot a fake. Better re-use and recycling of bills and coins would also be a benefit of a single currency. The costs in savings from not having to set up language translations of various currencies in shops, travel agents, banks, and on signs, would also be an advantage. Advertising, marketing and promotion could be targeted more affectively for one currency rather than several. A single currency would save money in bureaucracy.

Having a single currency would make it easier to have a cashless system. Paying by a credit system, chip and pin card, mobile phone, etc would be easier when spending or sending money around the world with no exchange commission or charges applied.

In an age of globalisation, a single global currency would add to the already growing arena of the global village. Weaker nations would

• 1
• 2
• 3
• Next Page >>