What is a global currency?

Global currency, also referred to as the world currency, is a currency that is commonly used in international transactions. This term can therefore be used to indicate the prevalence of an existing currency or on a hypothetical future currency. Today it often applies to the US dollar and to a somewhat lesser extent euro and Japanese only. It is also an expression used to describe the non -existent multinational currency that can be used in international business without being particularly associated with the economy of any particular nation.

since the age of 40. This does not mean that it has always been or is the strongest currency. The extensive use of the US dollar originated while the gold standard was still in place. At that time, every dollar could trade for a certain amount of gold. At the beginning of the 70s. The gold standard was abandoned, but mainly because of the prevalence of THV of the US dollar in international business remained the world's most common currency.

before the American currency took over the globalthe role of the Spanish dollar in the 17th and 18th century in a similar way. Again, it was largely due to far -reaching economic interests and the involvement of Spain. The more the country is involved in international business, the greater the role of its currency will probably also play.

There is currently a living debate among analysts about whether global interests would better serve the creation of one multinational global currency. Proponents say that having such a currency, not connected to any particular nation, could create greater economic stability and justice in the world. These thinkers offer a number of ways to develop a new global currency. Some propose a reserve currency that builds on the existing special rights to draw the International Monetary Fund. Others demand a new currency issued by the World Central Bank that would resemble the euro when it comes to being produced together and maintainlived many nations.

against the development of a global currency claim that worldwide international relations cannot be compared to relations between the Member States of the European Union. They believe that the real international consensus on issues vital for the creation and spread of global currency is not realistic in today's political climate. Some also claim that instead of improving stability and improving wealth division in the world, global currency could undermine the sovereignty of smaller or economically developing countries.