Title: Why We Don't Use One World Currency - The Pros and Cons - ExTravelMoney
Headings: Why We Don’t Use One World Currency – The Pros and Cons
Why We Don’t Use One World Currency – The Pros and Cons
Benefits of one world currency
1. Elimination of currency exchange fees
2. Better utilisation of money
3. Free flow of Trade
Disadvantages of one world currency
1. The economic conditions of each country is different
2. Loss of financial autonomy of a country
3. Brewing up an economic crisis
Comments

Content: We previously talked about the central bank of a one world currency having to act in a fair and unbiased manner. However, even when the central bank tries to act fair, a uniform policy will benefit some countries and may prove disastrous for some others! As an example, you need not look any further than Germany in European Union. Germany is probably the country that benefited the most from the adoption of the euro. Germany was a strong economy even before the formation of the European Union and the German Mark was among the strongest currencies in the world. With the adoption of the euro, a devalued currency compared to the Deutsche Mark, German exports became attractive to the rest of the countries in Europe and the German economy further prospered. Other member states, especially in south-eastern Europe, could not devalue their currency to boost exports and reduce their debt. The euro being the common currency, they could not frame their own monetary policy and become competitive. Thus their exports dwindled and debt soared. Now that you know both the pros and cons of single currency use, you’ll understand why the world isn’t moving forward with this solution.