• A single currency eliminates exchange rate risk and uncertainty, brining benefits to importers, exporters, consumers and investors.
This encourages trade and investments across boundaries, contributing to achieving a more efficient allocation of resources.
• A single currency eliminates transaction costs.
Whenever there is a conversion of one currency into another, fees are charged for the conversion.
A single currency eliminates these transaction costs, resulting in significant savings that have the effect of encouraging trade and investments.
• A single currency encourages price transparency. This makes it easier for all economic decision-makers to see price differences quickly and accurately across countries, which has the effect of promoting competition and therefore of promoting more efficient production.
• A single currency promotes a higher level of inward investment.
This type of investment can be expected to rise because of the absence of currency risk, resulting in greater economic growth.
• Low rates of inflation give rise to low interest rates, more investment and increased output.
A single currency under the control of a single central bank committed to maintaining price stability results in low rates of inflation.