Globalization - Regional Currency blocs are on the way?

The advent of the Internet and the movement towards integraton of economies via globalization in our view is going to have significant economic ramifications within the world of money. Sound and stable currencies is critical for the economic advancement of a nation state. Today, we are seeing firsthand countries abandoning their national currencies in favor of a common currency.

One only has to look at Europe, the introduction of the Euroland euro has replaced several national iconic currencies including the French franc and German duetschemark. Now country after country within Europe wants to be a member of this currency club including smaller states such as Slovakia, Lithuania, Latvia, Estonia, etc.. Europe to be the next United States of America (Europe)?

Future currency blocs may include the amero for North America (United States, Mexico, Canada). Within Asia, we could see the Indian rupee, Chinese renminbi, a common Asian currency union for countries such as Korea, Philippines, Malaysia, Indonesia, Singapore, Thailand, etc. Within the Middle East, the potential for an Islamic Gold dinar to circulate as a common curency is very real.

South America with a common peso currency. A continental African currency to service the majority of African states. The Leader of Libya has a dream of a United States of Africa with a common currency. At present, there is already the common CFA franc currency that circulates in several French speaking West African countries. In the Caribbean, there is the common East Caribbean dollar that currently circulates as legal tender.

The world may see a Central American common currency? The Russian rouble is likely to stay around with a paw on a few of its own countries such as Belarus, Moldova, parts of Ukraine? The Japanese yen will prevail in its own currency bloc.

The bottom line today is that much of the world's 180 currencies in circulation are junk. Countries are going to gravitate towards currency unions to ensure economic stabilization.

Currency crashes can be devestating particularly to the middle classes. Remember Argentina in 2000-01, Thailand and the Asian financial crisis in 1997, Germany in the 1920's to name just a few.

Currency unions will be much more likely in those countries that have significant trade relationships with one another to help lower transaction costs of currency conversion.

Look for an amero to arrive near you sometime in the future! For more currency discussion, please visit:

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