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Having recently returned from traveling in the U.S., Canada and Mexico. The most singularly annoying aspect of travel is the changing of currency and the variable exchange rates. While there will always be a strong lobby from those who gain from a multi-currency system, it is well past the time when a more global view should be taken.

Most observers tend to focus on the negatives of a combined currency. It does cost to change and there are potential risks but the long term advantages can be vast. European Union countries that have embraced the move to the Euro are now reaping untold rewards from trade and commerce, opportunities that were stifled during the multiple currency days.

During the change-over period from multi-currencies to the Euro, there were many winners and losers, expect the same. Here in Australia, we have undertaken to change from imperial to metric in both currency and ALL forms of measurement within the past thirty years. Hell did not freeze over! While there were opportunities for scammers to take advantage of the unsuspecting, for the most part, the impact of this activity was fairly minimal.

As far as the loss of autonomy in fiscal management is concerned, it is global factors that have the greatest effect. The Canadians are concerned, that something terrible will happen to their currency. They face no more or less risk than did any country in the European Union. Once the asset, debt and trading issues are determined, things will pan out. If there are initially there are pockets of value differentiation, time will take care of them.

Mexico is however, a vastly more complex situation. There are legal issues, historical differences, language, governmental, regulatory, economic and cultural differences that will require decades to overcome before a common currency could be considered. For the tourist and many cross border traders, the U.S. seems to be universally accepted anyway.

On the matter of governmental financial management, if the U.S. government continues on the path towards financial ruin by failing to manage external debt, Canada will go down with them. Canada is such a relatively small economy that shares lots of synergies with the U.S. and for the most part, relies heavily on the U.S. to market and source products and services. From an outsiders point of view, Canada is just a big state of the U.S. with some endearing differences.

Learn more about this author, David Ireland.
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