Munich Personal RePEc Archive

The Single Global Currency - Common Cents for Business

Bonpasse, Morrison (2007): The Single Global Currency - Common Cents for Business. Published in: IABE-2007 Proceedings , Vol. III, No. Number 1 (10. November 2007): pp. 46-54.

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Abstract

As globalization continues, businesses are increasingly importing and exporting from countries with different currencies. To conduct that business, they (whether one or both parties) must pay fees for exchanging one currency for another and they must determine the exchange rate for a particular time. If the transaction is to be conducted over time, they may purchase currency instruments to hedge against currency fluctuation. All of these tasks add up to an average of about 5% of revenue for international businesses. As an increasing number of international businesses understand that these expensive tasks are unnecessary for trade conducted within a monetary union, these businesses are likely candidates to lead the effort to implement a Single Global Currency, to be managed by a Global Central Bank within a Global Monetary Union. In short, a "3-G" world. It's common cents.

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