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I might be questioning very fundamental on which current global exchange rate trading fraternity exists but the same economic crisis has made me to think that way. This New Year was not like the past ones. Credit crunched citizens did not spend and enjoy as they were doing in the past. The reason is very obvious, known and talked about in every corner of the world today. Many conclusions are being drafted every second and most of them pointing towards one solution and that being more regulations. Now again a question arises: How much regulation? Applying high level of regulation would question entire concept of free market and having low degree of regulation would lead to disasters like current economic crisis. So, regulation may only be the part of the solution, not the complete solution. Then what can be the other solution??
Euro has turned 10 this New Year eve.Though not much hype was created on this context but Euro has traveled a long way since its inception in 1999 when 11 nations of the Europe agreed to integrate their currency and form a common one.Current economic crisis has shown something good coming out of it. Countries using Euro as currency has somewhat saved themselves from this meltdown and the reason is simple,they have a unified and integrated economic system between them so they are less exposed to the volatility of exchange. "The euro is sheltering businesses from the exchange rate volatility, which has battered them in previous downturns," Barroso said on Monday. "To put it simply, the euro works." Members in Euro community has increased to 16 with the addition of its newest member Slovakia.
Currently Euro is covering around 320 million population. That is remarkable achievement for a currency started just a decade ago. Even Iceland which not a EU country is eyeing into euronization. I am not sure, will Euro replace the Dollar as the global currency or not,neither am I much bothered about arguing which one is the best but current insulation from volatility which Euro has provided to its nations has made me think that having a common world currency would save us from devaluating our currencies at the time of such crisis and save us from pathetic government and central regulations. Having a common currency would make trade between the countries lot more simple and markets more susceptible to volatility. I think rounds and rounds of WTO meeting without outcome would then finally provide more leveled play field between developing and developed world.