Single Global Currency Analysis

The advantages of single global currency (SGC) are as follows. First, a single currency should end up and unstable in the participating countries. Because of the euro would have the credibility of being used in a large currency zone, it will be more stable than the individual currencies are now and also single currency will eliminate transaction costs which are linked to international financial operations but this will effect who plan to spend money abroad and multination corpora undertaking national transaction and this will unleash a greater potential for growth. The exchange of one currency for another always involves currency exchange rates, as banks that offer such currency exchanges, require fees for their services. To the extent countries

Each country or monetary union must face the problem of ensuring the balance of international payments, cause inequalities tend to cause fluctuations in currency values, currency risk. As often stated as a trader problem or the balance of payments current account problem is only a problem caused by the existence of multiple currencies. Within monetary unions, there is no balance of payments problem between member states or countries. Consumers no need to change money to buy or when they travelling and would encounter less red tape when they transferring large sums of money across border. It was estimated that consumer will visiting all twelve member states maybe the family will purchase or buy a holiday pack furniture back home so a single currency will help that transaction smoothly. Built in the proportion of the price of the currency is a risk that they will succeed. The risk that the government will fall to primary industry and a natural disaster is not it would be very costly. If the expected or feared would discount the currency of the country grows

Known cases of currency manipulation are the cases of china and japan. Both countries have to make their currencies artificially undervalued, which made their exports more competitive. As the value of the china yen and the japan yuan lowers the prices of japanese and chinese will consequently fall. This has created a huge advantage for japanese and chinese products on the market. Today the low value of these currencies, which has nothing to do with the real situation has created great difficulties for the economies of europe and the USA. Japan and China, according to all relating to the determination of the International Monetary Fund (IMF), have been constantly manipulating their currencies to gain an unfair competitive advantage. Obviously with a single global currency, currency manipulation by individual countries would be impossible. For more will have such kinds of methods of unfair. International reserves currently each of the other currencies in the world reserve currency trade finance but is saved in order to ensure confidence in the value of the currency. A single global currency to provide confidence and protect/beck up can be a form of important people, the definition will not be included of a backup or replacement of other currencies. Wisely business would no longer have to pay hedging cost which that doing today order