Can we have one world currency say universal(uni)dollar issued by world bank,like euro or US $ instead of dep?

Question

In the world, all the countries instead of depending upon these currencies (us dollar and sterling pount etc), world bank can introduce universal currency say uni-dollar. If it is possible, it may take long time to intoduce all over the world starting with international trade and by introducing higher denomination. Initially all the countries can link their currency with Uni dollar and gradually switch over to the world currency such as Uni- dollar.

Answer 1

I think this idealistic dream will take thousands of years to happen. Most countries are very used to their currency. It's hard to change. Many countries have special ties to their dollar. For instance, the US Dollar has the face of our first President. It means a little something to us that he is there. it's hard to break such ties and get everyone in the world to agree on an image for the uni-dollar.

Answer 2

Interesting idea, but even the EU countries have a tough time to coordinate their own gov't budgets and deficits in order to keep the Euro in a stable valuation range. An EU country cannot exceed a 2% deficit target, unless it wants to be punished with some type of penalties from Brussels.

Getting all the countries in the world to agree to manage their own budgets, and more importantly, get their deficit spending under control, would be the holy grail necessary to have a world currency. That is a tall order.

The US already sees the dollar as the defacto world currency. The US has the largest GDP, approx. $12 trillion in 2005, probably one of the most open markets, and the largest financial market (stocks and bonds), so it sees the dollar as the world's most important currency. An independent dollar lets the White House exceed spending when it wants to, almost without regard to what other countries think. Or the US can punish other countries with high trade imbalances or if they don't want to reduce trade barriers - by allowing the dollar to gradually lose value vs. their currency.

And the US has the world's highest military spending, so a world currency would put a crimp into that item.

Countries peg their currency to the US dollar when it is beneficial, mostly due to trade reasons. And they de-link it from the dollar when it better suits their needs, ie to demonstrate more political independence, or when the cost of their imports becomes to excessive when the dollar's value declines.

I don't think a world currency will happen soon. If anything, the dollar and the Euro will probably be the two major competing currencies, and other countries will link to one or the other. Or in the case of China, to a basket of several currencies.

Answer 3

If it's a hard currency or none of the nations are allowed to run a deficit, yes.

In other words, we can't have one world currency unless a single country or alliance conquers the world.

Answer 4

this is probably never going to happen, due to all the different economic conditions in each country. One currency system wouldnt be able to take into account all the individual economic problems that a country would face, so it technicaly is not possible.

Answer 5

That will happen sooner than you think. Why do you think they keep changing the U.S. bills now? They are working towards a "uni-dollar", because they are also working toward a one- world government. ( the New world order) but I am against the "uni-dollar" tho it is unstoppable.