More Multinational Currencies

Beatriz

Regional currencies in OTL occur in two types.
The first is a currency of an economic and monetary union. The Euro, the currency of the European union, is a shared currency between some members of the European Union, and its conversion to USD is set through the EU Central Bank. The Amero was a hypothetical currency for the North American Union proposed as an extension of NAFTA.

The second is a postcolonial currency shared between former colonies of a colonial power, the CFA franc and the CFP Franc for African colonies and Pacific overseas territories, respectively. These were created by France due to the weakness of the franc as currency after WW2. Even after independence, the CFA franc's exchange rate with the French franc was set by France, and only changed twice, the last time being 1994.

Given either of these options for a regional currency, what underlying factors would make their adoption more common?
 
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LuckyLuciano

LuckyLuciano

I would argue theres a third category, i guess you would call it hegemonic currencies, of world powers whose currencies are used informally or even in place of national currencies due to their relative stability in comparison to the national currency, and due to the nation having a dominant role in international affairs thus making exchange of it easy. I would argue that the US dollar while not a postcolonial currency is certainly a hegemonic currency, it used in place of the national currency almost entirely in Zimbabwe and throughout Latin America it is often used a secondary currency and a primary one in Ecuador ( though i suppose depending on your interpretation this could be fall under postcolonial currency, Zimbabwe certainly does not though).
 
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naraic

The fourth type would be currencies on the same standard.

The currencies aren't the same but are essentially the same as they are both pegged to the same base metal (usually gold or silver). They rise and fall in line with each other.

All the major powers had different currencies before ww1 but I would argue that they will ere the same as they were all tied to gold.
 

Beatriz

naraic said:
The fourth type would be currencies on the same standard.

The currencies aren't the same but are essentially the same as they are both pegged to the same base metal (usually gold or silver). They rise and fall in line with each other.

All the major powers had different currencies before ww1 but I would argue that they will ere the same as they were all tied to gold.
Click to expand...
The Namibian dollar is pegged to the ZAR
 

Dathi THorfinnsson

Currencies tend to fluctuate depending on the countries' economies.
Look at the lead up to the Euro, where the UK was forced out of the EMS, and earlier, the 'snake in a tunnel' failed.
Also the East African Shilling, and the attempted Caribbean monetary union.

What's good for one country (loose money/tight money) is rarely good for all in a group.

In some ways, it's more surprising that we have the few successful examples we have, than that there aren't more.
 
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