Arguments for a global currency

Some of the benefits cited by advocates of a global currency are that it would:Eliminate speculation in Forex since there is a need for a currency pair to speculate.Eliminate the direct and indirect transaction costs of trading from one currency to another .Eliminate the balance of payments/current account problems of all countries.Eliminate the risk of currency failure and currency risk.Eliminate the uncertainty of changes in value due to exchange-caused fluctuations in currency value and the costs of hedging to protect against such fluctuations.Cause an increase in the value of assets for those countries currently afflicted with significant country risk.Eliminate the misalignment of currencies.Utilize the seigniorage benefit and control of printing money for the operations of the global central bank and for public benefit.Eliminate the need for countries or monetary unions to maintain international reserves of other currencies.

Arguments against a single global currency

Some economists argue that a single global currency is unworkable given the vastly different national political and economic systems in existence.