Author Topic: Another new currency area  (Read 1960 times)

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Offline a3v1

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Another new currency area
« on: December 09, 2008, 10:54:38 AM »
Several sources reported over the week-end that seven Central American countries (Guatemala, Belize, Honduras, El Salvador, Nicaragua, Costa Rica, and Panama) plus the Dominican Republic have signed an agreement on introducing a new common currency to replace the existing currencies in all eight countries.
The are no details yet on the name of the new common currency, and on the date of introduction.
But it may be soon as this decision primarily was made to fight the present financial crisis.
Regards,
a3v1
Over half a century of experience as a coin collector.
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Money is like body fat: If there's too much of it, it always is in the wrong places.

BC Numismatics

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Re: Another new currency area
« Reply #1 on: December 09, 2008, 11:11:10 AM »
A3v1,
  The odd one out of these countries is Belize,which has more in common with the West Indies,especially Jamaica,rather than Central America.

Belize is also subject to an ongoing dispute with Guatemala as well.

The Belizean Dollar would be the hardest currency to dump,given the fact that it is historically a very strong currency tied to the American Dollar.

Aidan.

Offline Figleaf

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Re: Another new currency area
« Reply #2 on: December 09, 2008, 04:52:04 PM »
There have been several such attempts of another euro or another EU, even another EEC. The sad truth is they all failed. The problem is that you can't just do these things without giving up an amount of sovereignty and in the end, there's always a strongman, a populist politician or a Chicagoan economic adviser to the local government who will shout that that would be the end of the world. The secret of the EU (and the reason why the UK doesn't fit) is that there is an amount of trust between the member states.

For a common currency, you need a common central bank. That alone is something most countries cannot stomach. You also need to agree on measures controlling inflation, including government debt and deficit. Can you see any tin pot dictator (to quote Ms. Thatcher) agreeing to any of this? That said, a common currency could be of enormous benefit to developing countries. The story of Ireland, going from one of the poorer to the richest EU member state comes to mind, or Italy, taming inflation in one stroke...

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline chrisild

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Re: Another new currency area
« Reply #3 on: December 11, 2008, 08:18:33 AM »
there's always a strongman, a populist politician or a Chicagoan economic adviser to the local government who will shout that that would be the end of the world

Sounds very familiar - and does certainly apply to other parts of this world too.
http://www.tagesschau.de/multimedia/video/video392408_res-flash256.html
ARD "Tagesthemen" (German) 15 Oct 2008

Christian

Offline Figleaf

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Re: Another new currency area
« Reply #4 on: December 11, 2008, 10:44:49 AM »
Shocking. No other word for it. How could Cheney have gotten away with this? For non-German speakers: an Irish defense contractor for the US government has been agitating against the EU and influencing votes. His orders come from the US defense department. His success has caused a crisis in the EU. The Heritage Foundation is behind his thinking. They claim that European integration is against US interests. Sample slogan: in the few areas where the EU has a coherent policy, the US has lost.

Please note that this is the content of the link Christian gave only. If you want a political discussion, please go to the living room.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline chrisild

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Re: Another new currency area
« Reply #5 on: December 11, 2008, 11:22:36 AM »
That particular example came to my mind because this week ZDF, another German TV channel, had a very similar story about that very same man. This time the focus was on his new No campaign for the 2009 European Parliament election. Anyway, in such cases you really need countries and governments that are seriously committed to such an idea, and also neighbors that do not perceive such a step as a threat. In both regards, this currency area has a better chance, IMO, of becoming a real thing than the plan for a "sucre" area which would include Cuba and Venezuela ...

Christian


Offline <k>

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Re: Another new currency area
« Reply #6 on: December 30, 2019, 01:11:20 AM »
So what is the latest news on any proposed common currency areas in Latin America?