Thursday, August 27, 2015

Essay: Should All Countries Have the Same Currency?

Everybody knows that nearly every country has its own currency. This currency is valid on the territory of this peculiar country. Every country has long and exciting history of its currency. Banknotes and coins have survived a long way of improvement and intensive development. Everyone will agree that modern banknotes and coins are the pieces of art, because there are designers and artists who work hard to create beautiful money. There are people who collect money from all over the world and their collections cost a fortune.

Money is not a simple element of economy. It is a part of culture. It is possible to get to know about a country when you look at its money. When you hear a term ‘crown’, you understand that it is a currency of a certain European country. When you hear “dollar”, you understand that it is a currency of a country of the English speaking world. Every banknote has its own picture of a famous personality or important place or event related with this country. It is possible to learn about the distinct characteristic features of a country when you look at its banknotes and coins. You will definitely find state symbols and other peculiar elements important for every citizen of the chosen country. Consequently, a currency is the element that maintains originality and authenticity of a country. A currency is also a good indicator of a country’s independence. Only an independent country can have its own currency and conduct financial transactions with its help.

Nowadays the situation is a bit different. We live in a dynamic world. Globalization touches upon every sphere of human life. Economy is not an exception. A country cannot survive without close economic relations with other countries. Every state needs resources, food, transport, technologies, energy, etc. It is possible to obtain everything abroad. When a country does not have its own oil or coal, it purchases these resources abroad. Of course, it is quite difficult to conduct foreign exchange transactions, because every country has its own currency. A country has to pay the direct equivalent of the sum in its own currency. Very often conversion consumes additional time and creates additional problems and misunderstandings between both parties. No wonder, many people dream about a single universal currency that will break all conventions and improve the quality of every purchase. There are several currencies that are used on the territories of several countries. We can mention euro that is used on the territory of the European Union and US dollar that is used in the USA. When you have euros, you are able to purchase everything on the territory of the whole EU. Its member-countries have decided to make strong economic connections with the help of the same currency. Therefore, they do not waste time on conversion and conduct all financial transactions rapidly.

On the one hand, the same currency is very convenient. It saves time and improves the quality of financial transactions. On the other hand, it is possible to use the same currency only between equal countries. Nowadays there are developed and developing countries and it is impossible to introduce a single global currency, because it can cause misbalance in the global economy.

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