Portfolio Task 6
The question of a global currency is a complex one. The European union has the Euro which has replaced local currencies such as the franc or the lira. However, the mechanisms are complex and many feel it is better to return a national currency.
Trade between nations has to take place using a currency exchange mechanism. Travel can include negstiating a wide variety of different currencies. So there is an argument to allow for one currency. On the other hand, banks make a lot of profit from trade in international exchanges. So opinion is divided. I think that a bank note is a national emblem and the guarantor of the note rejects the global view of their promise. In the UAE, the central back controls the currency.
In the UK, it is the Bank of England. Therefore countries vie with each other to negotiate on the trading mechanisms.
Therefore, it is better to keep national identity on the bank note but at the same time there is much to be said for the convenience of a single currency.
No comments:
Post a Comment