Pros

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=Pros of a World Currency =

A world currency is something has been discussed many times throughout the years, but so far it has not yet been implemented. What a world currency is, is a unit of money that can be used anywhere in the world, by any person and country. There have been many arguments against a global currency, such as the difficulty of regulating rates and forming a single group to oversee money issues. These issues however are not as significant as the positives of having a world currency. A world currency should be implemented because it makes international trade easier, gets rid of the cost of money converting, and will bring the nations together.



The first reason to have a world currency is that trade among different countries would be much simpler. For example, the dollar is somewhat of a global currency right now, though not completely. The dollar is widely accepted in some countries, therefore if you were to carry money in the form of a dollar in a country such as, Canada, Panama, and even Hong Kong, then you would be able to make a purchase there. Imagine that being possible everywhere you go, never having to worry about converting the money into another form, which links into the next reason. It would work in a similar way to how the dollar is in every state or like the European Monetary Union where the Euro can be used anywhere within that union (SGCA, 2003). The countries in that Union do not have to worry about what kind of money they have as long as they stay in the countries that use the Euro.

The second reason is the aforementioned conversion of money. Converting money really just takes up time when you could be easily just handing in one form of money. Besides the time it takes to convert it, there are also the costs of conversions. Depending on the currency, the value of that money can and will either drop in value or rise in value depending what country you go to. Besides that, there is also another extra cost added on to that. All of that money can really add up over time, and it is unnecessary. In a study on exchange rates, it was found that the cost of transactions and value of money had a big decision on whether a single world currency would be more effective, and when the costs were minimal, a global currency was favored (Witte, 2009)

The third reason would be that through having a world currency, the different nations would have come together. There would be less conflict among the countries as an agreement would have had to be made in order for this to work. Imagine a world where all the countries have to meet up together to discuss major issues, ideas, and other things concerning money. If that can be done successfully then ultimately there would be a higher sense of unity with the other nations. In the article Waking Up to a World Currency, French President Sarkozy expressed a need to come together and brainstorm in order to work on this idea of a world currency (Newman, 2010). In the current world it would be very difficult to have different nations agree on the same thing, but if an agreement is made then there communication between countries would be better.