In this globalized world, the subject of using a global monetary unit has sparked much debate worldwide, and it is argued that trading and traveling would be more convenient with one universal currency. Although there are drawbacks in using one standardized currency, I personally agree with this statement and will elucidate my viewpoints with pertinent examples in the subsequent paragraphs.
To begin with, nowadays, globalization is indispensable, and this will benefit trading and tourism, by eliminating exchange rate fluctuations. For example, in terms of foreign enterprises, international transactions would be smoother by reducing the risk of financial trading. Nevertheless, this will encourage global businesses and investments, which can reduce inflation and speculation caused by monetary fluctuations.
Secondly, tourists would benefit from having a common currency, as they would not have to convert their money in each country they visit. Furthermore, it could reduce expenses and simplify spending abroad. For example, in the Maldives, every visitor has to exchange their money into Maldivian rufiyaa (MVR) at high exchange rates for spending. Moreover, this system allows consumers to compare prices of goods and services, which leads to fairness and reduced confusion about monetary values.
In conclusion, even though this trend has drawbacks to a certain extent, including countries losing the ability to control their own monetary policies that can address national level problems, these policies may favor in developed countries rather than developing countries that would be tied into this system. Therefore, by enforcing rigorous regulations regarding fair economic policies and establishing a global central bank, relevant bodies can take significant strides toward mitigating possible issues. However, I am convinced that its advantages far outweigh disadvantages.