1. A single currency should end currency instability in the participating countries (by irrevocably fixing exchange rates) and reduce it outside them. Because the Euro would have the enhanced credibility of being used in a large currency zone, it would be more stable against speculation than individual currencies are now. An end to internal currency instability and a reduction of external currency instability would enable exporters to project future markets with greater certainty. This will unleash a greater potential for growth.
2. Consumers would not have to change money when travelling and would encounter less red tape when transferring large sums of money across borders. It was estimated that a traveller visiting all twelve member states of the (then) EC would lose 40% of the value of his money in transaction charges alone. Once in a lifetime a family might make one large purchase or transaction across a European border such as buying a holiday home or a piece of furniture. A single currency would help that transaction pass smoothly.
3. Likewise, businesses would no longer have to pay hedging costs which they do today in order to insure themselves against the threat of currency fluctuations. Businesses, involved in commercial transactions in different member states, would no longer have to face administrative costs of accounting for the changes of currencies, plus the time involved. It is estimated that the currency cost of exports to small companies is 10 times the cost to the multi-nationals, who offset sales against purchases and can command the best rates.
4. A single currency should result in lower interest rates as all European countries would be locking into German monetary credibility. The stability pact (the main points of which were agreed at the Dublin summit of European heads of state or government in December 1996) will force EU countries into a system of fiscal responsibility which will enhance the Euro's international credibility. This should lead to more investment, more jobs and lower mortgages.
The price of a floating currency is determined by the currency exchange market while the price of a fixed currency is connected to the price of some other commodity.
Having a common currency requires some agreements between different countries; apparently, for this to work, it also requires individual countries taking certain steps to have a stable economy. All this is a bit tricky while there is no central world government; but there are already cases where several countries share a common currency; the best-known case is the Euro, used in most European countries. It can be expected that at some time in the future, all countries in the world will share a common currency, but this won't happen overnight.
The most widely used currency on the planet is the U.S. Dollar. It has global recognition and in some countries is even an official currency beating out the per-existing currency.
There are several tips for currency exchange and trading currency on the foreign market. Some of these include understanding the strategies of the market, managing risks, to not expect to win on every trade, and to do lots of research on what the current statistics and data are.
Some of the main causes for fluctuations in foreign currency exchange rates are differentials in inflation and differentials in interest rates. Others include currency-account deficits and public debt.
Advantages include having it at a birthday party!
There are many advantages to having a jacuzzi shower. Some advantages of having a jacuzzi shower is having the opportunity to feel relaxed and having the opportunity to entertain guests.
The advantages of refinance consolidation include having all of the loans joined to become one so that it is a single rate of interest and a single company that needs to be paid. It can make life managing the finances a lot easier to manage.
There is no single currency. Each state produces their own currency, although in some countries, the US Dollar is also widely used.
There are a number of potential advantages to a company having managed web servers. Some of these advantages are having more predictable and manageable costs, increased reliability, better security and reduced staffing requirements.
There are a number of advantages of having a carpet rug. Some of these advantages are that it softens slips and falls, reduces noise, adds style and wears well.
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Some advantages of having Everest windows are the fact that they are sound proofing, contain heat, and are good for security.
Some advantages on written language is to be able to teach, write, and text. Hoped it helped ;P
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