Wanna Argument?
As Europe says 'hello' to the euro, is the UK sound as a pound?
What are the benefits of having a single currency?
These have been detailed before but it is worth reminding ourselves that the single European currency should:
- Remove exchange rate uncertainty for businesses operating in the eurozone, thereby cutting risk and boosting trade.
- Produce financial markets in the eurozone that are, according to the Bank of England, 'deeper and more liquid'.
- Make movement of goods, services and people within Europe easier.
- Help consumers across the eurozone compare prices of goods and services. This should boost competition.
- Remove the possibility of individual countries using competitive devaluations to restore their competitiveness.
- Reduce transaction costs for all those needing to transfer currencies.