Running head: Should there be a Single global currency?
Should there be a Single Global Currency?
Christian Okonye
Ferris State University
ENGL 250
Should there be a Single Global Currency?
In international finance and the foreign exchange market, a single global currency is referred to as a monetary unit that is transacted and accepted for trade throughout the world. (Amadeo, 2012). In the past, almost every society has implemented the use of a single currency. Primitive monies such as cowries, beads, and other items are examples of the practice of a uniform means of exchange before the use of metal coins and paper currency. In order for a single currency to thrive successfully, a common economical, political and social ground is required. During the medieval times, the British Empire, the Roman Empire, and the Chinese Empire established a single currency standard in form of coins over their governed regions. Prior to that, each region issued it’s own currency which was only accepted within it’s border.
Since Europe enacted the euro as its common currency in 2002 and its adoption by 12 countries, 10 more countries have joined. This currency unification is practiced because of its enormous benefit and the union of these countries tends to reduce the devaluation of currency and thus saves cost. As Mr. Bonpasse argues in his “The Single Global Currency” book, that US$400 billion of annual transaction and exchange costs will be eliminated and the value of worldwide assets will rise at about $36 trillion if all currencies were to be integrated into one. (Bonpasse, 2008)
The global use of a single currency can serve a purpose in reducing the cost of goods and the problem of inflation. In addition, travelling will be a lot more convenient because tourists would bother less about exchange rates, and money transfer to other countries will be hassle free. Lastly, with the implementation of a single...