Forex: Why We Need More States?
Simply, we need more states for more currencies. Without the numerous currencies, there is no Forex . Fewer people would join the trading because of lack of excitement, dwindling opportunities, more government control and less foreign exchange. A single world currency is a socialist concept and not a capitalist one.
The more states we have, the more currencies in the circulation. Euro is the single currency system in most of Western Europe and wiped out the currencies like the Italian Lira, Dutch guilder, French franc, Greek drachma, Irish pound, German mark and 11 other currencies. The other members of the Euro retained their old currencies due to nationalist sentiments and constitutional safeguards. While there are many perceived advantages of a single currency in Europe, many still foresee a more dangerous domino effect associated with having a single currency. The North Americans (Canadians, Americans and the Mexicans) are talking about the possible implementation of the single North American currency known as the Amero. The plan proposed by NAFTA (North American Free Trade Agreement) including the superhighway linking the three countries has received heavy opposition from grass root conservatives in the United States and fiercely nationalist elements of the political spectrum in the Canada and Mexico. There is also a plan of having a single currency in the ASEAN countries but the possibility of imposing a single currency in the Southeast Asian theater is more unlikely than in other regions. Southeast Asian (Indochina and the Malayo-Polynesian) countries have very nationalist populations.
More states mean more currencies. More currencies mean more Online Forex trading. The forex market plays an indispensable role in providing essential machineries for making payments across borders and making transfer of funds. Such makes trading vibrant and forex indispensable. While many organizations have not thrown away the single currency option, new states are emerging every year (East Timor, Montenegro, Serbia, Kosovo and the new former Georgian provinces of South Ossetia and Abkhazia). These new states add to the number of currencies in circulation. Such makes the foreign exchange market more exciting.
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