Title: One World, One Currency: Could It Work?
Headings: One World, One Currency: Could It Work?
One World, One Currency: Could It Work?
Who Would Benefit?
The Disadvantages
Supply and Printing
The Bottom Line

Content: Traders would no longer have to hedge their positions in fear of currency fluctuations. All transaction costs related to international finance would be eliminated as well. Exchanging currencies always requires a conversion, which banks charge as a fee, and there can be a loss in value in changing one currency to another. Having one global currency would eliminate all of this. Individuals traveling abroad would benefit as well as businesses conducting operations in other countries. Economic data estimates that when European countries switched to the euro, €13 billion to €20 billion were saved per year in transaction costs. 2 ﻿
Furthermore, breaking down a currency barrier leads to increased trade among nations. Again, if we take the European Union as an example, switching to the Euro increased trade amongst member nations by 5% to 20%. 3 ﻿
In addition, there would be somewhat of a leveling of the global playing field with one currency, since nations like China could no longer use currency exchange as a means to make their goods cheaper on the global market. For a long time, China has manipulated its currency, undervaluing it, and thus making the price of its exports more competitive across the world.