Why can t the whole world use the same currency?

The whole world cannot use the same currency, because the prices of each currency are different.

You can't use the same currency, because then it won't be distinctive.

No, because every country also wants to use its own.

Because each of your national currencies has its own national characteristics.

Every country has a different history and a different culture.

Each country has its own currency, which is its own symbol.

The reason why things and prices are different in each country.

In the context of the uneven development of the world economy, it is obvious that there are advantages and disadvantages to the unification of the currency of the whole world.

Let's take a look at the benefits of the same currency to the world

1) If there is only one currency in the world, there is no exchange rate mechanism and no fees. There will be no significant restrictions on the scale of cross-border investment and import and export, which can effectively promote the flow of investment funds. In addition, the amount of foreign exchange reserves that can be settled in different currencies also limits the size of the country's investments abroad.

If the foreign exchange reserves are insufficient, they cannot be converted into the currency approved by the other party, so that they cannot invest or buy resources. Taken together, the efficient liquidity of the same currency can promote economic development.

2) The same currency can avoid local financial crises caused by exchange rates and debt in some less developed countries. With the same currency, there will inevitably be a global unified monetary central bank. In order to prevent the spread of a local financial crisis, a unified central bank will inevitably formulate policies to vigorously assist countries with small forces in crisis.

Weak countries will therefore be more able to resist finance. Moreover, because of the existence of exchange rates of different currencies, there is a financial crisis in which capital predators take advantage of the incompleteness of the exchange rate and the market to manipulate market fluctuations and carry out financial plunder, causing the collapse of the local currency. A unified currency will naturally put an end to the financial plunder of exchange rate market manipulation.

3) The use of the same currency will also promote the same resources** to be more consistent, and the trading is more fair. The problem of local protectionism, which monopolizes resources and monopolizes pricing, may be resolved.

The EU's integration and euro policy provide a range of reference value for the use of only one currency. The eurozone has a high degree of economic integration, and the policy of the same euro has contributed to the great development of the EU economy. However, a lot of problems have also been exposed.

In the same way, if it is extended to the world, because the development of the world economy is uneven, there may be greater disadvantages on the contrary because of the uneven development of the world economy

1) A unified currency will make the strong stronger and the rich richer. The big countries will be able to use the more wealth in their hands to buy scarce resources from backward regions. Although global resources are close to fairness, local tensions are inevitable.

Great powers can easily manipulate the market and plunder backward regions. Weak and small countries are not protected by the exchange rate mechanism, and they will be even more out of control if they are passively beaten.

2) The efficient liquidity of a single currency can facilitate investment and transactions on a larger scale. However, the profit-seeking nature of capital will inevitably prompt investment funds to flow to more developed regions and make backward areas even more impoverished.

3) A large unified central bank system, in order to avoid the expansion of the crisis, the policy of aiding small countries will cause the whole system to tilt. The advanced and developed countries want to subsidize the backward countries, resulting in the inprogress and laziness of the backward and small countries, and the dissatisfaction of other member countries, which will lead to the withdrawal of members, and in the worst case, may lead to the collapse of the entire system.

If this is really the case, it is definitely a good thing for the whole world, a country's currency can become the world's common currency, it means that the military, political, science and technology, and ideas can be accepted and recognized by the majority, as far as reality is concerned, it means that the United States has an equal opponent and partner, and the world is no longer a single level, but is steadily advancing in mutual restraint and mutual dependence, and this pattern is obviously better than the current one-pole situation.

The value of each country's currency is different, and it can be summarized for the following reasons:

1. A country's economic growth is growing rapidly. This is the most basic factor that affects exchange rate fluctuations. In the long run, economic growth leads to an increase in the value of the local currency. The value of a currency depends on the subjective evaluation of the currency by both the supply and demand of foreign exchange, and the comparison of this subjective evaluation is the exchange rate;

2. The balance of payments. The balance of payments, simply put, is the import and export of goods and services, as well as the import and export of capital. In the balance of payments, if exports are greater than imports, the inflow of funds means that the demand for the country's currency in the international market increases, and the local currency will rise;

3. The difference between the price level and the inflation level. Under the paper money system, the exchange rate is fundamentally determined by the real value represented by the currency. According to the purchasing power evaluation, the ratio of the purchasing power of a currency is the exchange rate of the currency;

4. Differences in interest rate levels. The most explicit is the interest rate evaluation theory that emerged after the 70s. This theory explains the movement of the exchange rate well in the short and medium term;

5. People's psychological expectations. If the evaluation is high and the confidence is strong, the currency appreciates. This theory plays a crucial role in explaining the myriad or extremes of exchange rate fluctuations.

Because the currencies of various countries correspond to the commodities that can be exchanged, or the corresponding standard value is different, the transaction between countries is actually the value behind the standard, the RMB is the silver standard, and the US dollar is the gold standard, so the "value" is different.

The value of national currencies fluctuates due to changes in the price level caused by changes in aggregate supply and demand in the economy. In order to trade fairly between countries, a key word was generated, namely "exchange rate". Exchange rate changes have a direct regulating effect on a country's imports and exports**.

Under certain conditions, by depreciating the national currency externally, the exchange rate will fall, which will play a role in promoting exports and restricting imports; On the contrary, the appreciation of the national currency to the outside world, that is, the exchange rate rises, which plays a role in restricting exports and increasing imports.

In this series of regulation, there is a gap in the value of the currency, and the exchange rate also widens, which will lead to a different commodity corresponding to each currency.

Strictly speaking, there is no such thing as which currency is worth money and which currency is not, but the value of the standard stipulated by the bank is different, and the RMB is the silver standard, and the exchange rate is generated because of the existence of leverage in the silver standard.

Answer: Analysis: Generally speaking, as a world currency, it must be **or**.

Legal tender and common metal coinage within countries, dressed in the garb of the state, usually cannot go beyond national borders, therefore, they cannot act as world currency. Only *** can be used as a general means of payment in economic exchanges between countries, and is used to balance the difference between international countries. With the development of international currency and currency, some countries' banknotes are recognized by everyone for their high reputation and stable currency value, and can be used in international settlements.

Such as the US dollar, the mark, the British pound, the franc trillion liquid, the yen, etc., have a certain function of the world's currency.

The U.S. dollar is now a more common currency, because the most valuable item in the world is **, and its output is certain, which belongs to rare metals.

In July 1944, 730 representatives from 44 countries, including the United States, the Soviet Union, China, and France, held a financial conference in Bretton Woods, New Hampshire, and signed the Bretton Woods Agreement under the manipulation of the United States.

There are two contents of the meeting, one is that the US dollar is directly linked to **.

Second, the currencies of the members of the International Monetary Organization are pegged to the US dollar, so that the Bretton Woods system was built, and the United States controlled most of the international economic order, and the World Bank was established in 1945 and operated in 1946, and the International Monetary Organization was established in 1945 and operated in 1947.

The funds of the World Bank and the International Monetary Organization are mainly ** the shares subscribed by the member countries, and the share of the shares is determined according to the economic strength of each member state, and the voting efficiency of the members is proportional to the shares subscribed, so that the United States and the capitalist countries control most of the world financial order, so the world now recognizes the US dollar as the world currency.

The U.S. dollar has different unit value because of the purchasing power of the currency;

Causes: There are differences in the definition of monetary units in the corresponding countries, in short, currency appreciation, which leads to an increase in the cost of exported goods, thereby inhibiting exports; Conversely, promote imports. But the impact of currency appreciation goes far beyond that. Here's an explanation from the industry side:

The appreciation of the renminbi will be good for industries that rely mainly on foreign procurement of raw materials or equipment, or have highly liquid renminbi assets. For industries with large US dollar external debt, a one-time exchange gain will be generated; The impact on export-oriented industries and industries with international pricing of products is greater.

Raw material imports and industries with high foreign currency liabilities.

Appreciation is good for industries that rely on foreign procurement of raw materials or equipment, or have large foreign debts, such as aviation, papermaking, electric power, construction machinery, etc.