Why do we have different equivalents of a “dollar”? Who decided that different currencies would exist and would be worth what they are? Why can’t we have one currency used globally?
please n thank you
In: 0
That “piece of paper” is valued not for the raw materials. It is a guarantee by the issuing government to honor that paper in exchange for things of value in that country.
That alone should tell you why a global single currency wouldn’t work. Why would, say, Canada agree to the liabilities and guarantee value for the Albanian people and vice versa. The only way any government would do this is if they had control over the issue of such currency (plus all the banks that use that currency). There is no way that any government would, in normal circumstances, allow a government of another country to have such power over it.
Latest Answers