Firstly, do you know what a currency is?
A currency is a unit of exchange, specifically used when buying or selling goods or services.
But did you know that there’s no one currency that works in all countries? Every single country in this world has their own currency.
Like many other things, currency needs to be managed. If the world only had one currency, who would have the right to manage it? This would be a problematic situation. Thus, it is best that each government manage their own currency so as to not enter into any dissatisfaction or conflict.
Different economy grows at a different rate. This would affect the value of their currency. Apart from that, there are many other factors that affect the value of a country’s currency like comparative advantage, interest rate, trade, etc. If every country had the same currency, the economic system that we know of today would cease to exist. More for you to learn about as you understand Economics better with Investor Kiddo.
There’s ONE Special Currency
There’s one special currency that is currently being officially used by 19 countries!
It’s the € : pronounced “Euro”.
The Euro is being managed by the European Central Bank (ECB).