What is international money symbol?

“In 1992 the European Commission estimated that the future Eurozone members might be able to reduce their total international reserves by one-half or $200 billion? .

Disadvantages of a Single Global Currency

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Turning to disadvantages of a Global Currency, the most negative side of it is that countries will lose the ability to control their financial policy.

Today every country is able to determine their monetary policy independentl?

In order to have an influence on the economy, nowadays central banks of every country through influencing exchange rates and adjusting interest rates, may increase or decrease economic activity.

However in case of a single global currency, changes in a local country’s finances, will demand changes in the global scale. So with the Global Currency countries will lose flexibility in their monetary policy

“A uniform policy template to provide macroeconomic stability, will constrain a country’s ability to make independent interest rates and exchange rate policy

Another significant disadvantage of having a Global Currency is connected with the difference in economies of different countries.

While there are only a few developed states with strong economies, the rest of the countries of the world have rather weak economies

instance the majority of African countries or some South American countries. In the world with a common currency

the weak economies shall pull down the rest, more well off countries.

If one of the members will face a crisis, the others will have to spend their resources in order to stabilize the situation.

. A perfect example could be the debt crisis, which recently has occurred in Greece.

While the EU/IMF bailout package wasn’t enough, Germany had to loan about 110 billion Euros in order to save the country from bankruptcy

In addition the crisis had a chance to spread to other countries, as it reduced confidence in the economies of other EU members.

Conclusion: Is The Single Global Currency Implementable?

Global Currency as a financial system has been first mentioned back in the end of XIX century?

The reasons why this system still has not been implemented are rather social and political,

than economical. The first obstacle is national identity.

. Most of the nations consider their currencies as a national symbol, equal to the flag and the anthem. Obviously people will hardly discard their own national symbol,

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