Monetary union

From Freepedia

In economics, a monetary union is a situation where several countries have agreed to share a single currency among them, for example, the East Caribbean Dollar. A monetary union differs from an Economic and Monetary Union, where it is not just currency but also economic policy that is pooled or co-ordinated (as in the European Union Eurozone, for instance).

Contents 1 Existing monetary unions 2 De facto monetary unions 3 Proposed monetary unions 4 Previous monetary unions 5 External links

Existing monetary unions

• The euro is used by twelve European Union member states: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain and is also used in Andorra, Kosovo, Montenegro, Monaco, San Marino, and the Vatican City which are licensed to use the euro (see de facto monetary unions bellow for the list of places that are not licensed to use the euro. The euro is issued by the Economic and Monetary Union.
• The CFA franc BEAC is used by Cameroon, the Central African Republic, Chad, the Republic of the Congo, Equatorial Guinea and Gabon and is issued by the Communauté Économique et Monétaire de l'Afrique Centrale (CEMAC), i.e. the Economic and Monetary Community of Central Africa.
• The CFA franc BCEAO is used by Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo and is issued by the Union Économique et Monétaire Ouest Africaine (UEMOA), i.e. the West African Economic and Monetary Union.
• The East Caribbean dollar is used by Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines and is issued by the Organisation of Eastern Caribbean States (OECS).
• The CFP franc is used by French Polynesia, New Caledonia, and Wallis and Futuna and is issued by the Institut d'émission d'outre-mer (IEOM), i.e. the Overseas Issuing Institute.
• In the countries of Brunei and Singapore, the Brunei dollar and the Singapore dollar are legal tender in both countries.

De facto monetary unions

• The United States dollar is used by the United States, Palau, the Micronesia, the Marshall Islands, Panama, Ecuador, El Salvador, and East Timor.
• The Australian dollar is used by Australia, Kiribati, Nauru, and Tuvalu.
• The New Zealand dollar is used by New Zealand and the Pitcairn Islands.
• The South African rand is legal tender in South Africa, Lesotho, and Namibia.
• The Russian Ruble is used in Russia and the Georgian autonomous (self-declared independent) republics of Abkhazia and South Ossetia.
• The Palestinian territories use the new Israeli shekel, as does Israel and the Jordanian dinar, as does Jordan.
• The Swiss franc is legal tender in Switzerland and Liechtenstein.
• The self proclaimed Turkish Republic of Northern Cyprus uses the Turkish lira and the new Turkish lira as does Turkey.

Proposed monetary unions

• between Australia, New Zealand and Papua New Guinea
• Caribbean Single Market and Economy (CSME) (as part of the CARICOM)
• East African Community (EAC) with the proposed currency being named the East African shilling, planned to be introduced in 2009
• Economic Community of West African States (ECOWAS) with the proposed currency being named the Eco, finally planned to be introduced in December 2009 after the date was set back twice
• Gulf Cooperation Council (GCC), planned to be introduced in 2010
• South American Community of Nations (CSN)
• pan-American monetary union (abandoned in the form proposed by Argentina)
• Union of Russia and Belarus
• Southern African Development Community/Southern African Customs Union (SADC)/(SACU)

Previous monetary unions

• Belgium-Luxembourg Monetary Union
• between France, Monaco, and Andorra using the French franc
• between Italy, Vatican City, and San Marino using the Italian lira
• Latin Monetary Union
• North German thaler (basically the Prussian thaler)
• Rouble zone countries
• Scandinavian Monetary Union
• South German gulden
• between Spain and Andorra using the Spanish peseta

External links

• The history of monetary unions
• African monetary union inches closer
• United States of Southern Africa?
• East Africa's first steps towards union
• West Africa opts for currency union
• Gulf States push for single currency
• 'Limited gains' from Gulf single currency
• Argentina plans monetary union
• Quadrant Magazine article on the Pacific
• Economist- Antipodean currencies (Australia and New Zealand)
• Three Perspectives on an Australasian Monetary Union
• Reasons for the collapse of the Rouble Zone
• In Search of the "Ruble Zone"
• OECD Development Centre- the Rand Zone