Today we rely on the power currency to trade, invest and exchange. The stable political and economic condition of a country determines a stable and reliable currency for investment. Today's powerful currencies are Dinar, Pounds, Dollars, and Euro. For a while, suppose what would happen if Currency in all Countries had fewer denominations?
The stability of the currencies impacts the world's trade, Stock Market, Exchange rates, political policies, lives of the countryman. Meanwhile, such condition is in favor of developing countries. They enable emerging countries to work independently, reduce inflation, and control poverty. The political struggle may increase, and alliances to obtain a powerful currency may take place. In the secure atmosphere, trade flourishes, and the exchange of goods and services may work. Here we mention the impacts that may happen if Currency in all countries has fewer denominations.
A considerable number of the world's GDP pays the stock market to the world bank. The stock exchange is responsible for ensuring price transparency, price discovery, liquidity, and fair dealings in trade. They perform matching prices and work to facilitate trader's execution at a reasonable price to sellers and buyers. Therefore, having Fewer denominations will cause fail the stock market.Exchange Business Reduces:
Nowadays, currency exchange is itself a business; the variation in the Currency's value plays a vital role. If the money of all countries had fewer denominations, the interpretation would reduce the exchange business will not encourage the broker. Therefore, the income decreases and buyer and seller get discouraged.Brokers and Investors:
Brokers and investors will lose opportunities for for-profit and trade options. There would be the same prices of goods and services due to fewer options available in front of a fee. If the Currency of all countries had fewer denominations, the brokers and investors pull back their money from substantial economic countries projects because they are about to lose. Resultantly, strong economies face another surprise.Currency Investment Fails:
If the world reduces the difference in the currencies, the strong currencies weaken, and weak currencies gain strength. Therefore, the close to equal value of money will lose charm, and Investors stops investing in the currencies.Increases Globalization:
As almost all major businesses across the globe are operating technically, global trade will come into the trend, and new emerging countries will introduce their products worldwide wide. People will buy things from far and near fearlessly because the cost of something will remain the same.Struggle for Imperialism:
Struggle for imperialism will get more robust in the entire world the political and military struggle for power will come into movement. Countries that face loss will struggle hard to regain their strength and powerful economy back. Therefore distractions may influence the world.International Trade Flourishes:
That would be time to make dreams come true, and the weak economies will enjoy the new status. In those circumstances, international trade will flourish. People turn to actual money collections like gold, silver, or other precious kinds of stuff. They will use it to buy the best quality for themselves instead of buying home products.Failure in Import-Export:
The import-export benefits when the rates of Currency possess variation. The denomination of the Currency equalizes the value of the money of the entire world. Therefore import-export provides least of profit. Failure in the import-export field will cause great disasters. Import-export economies will face great losses.Poverty Reduces:
In case of fewer denominations of all currencies, the emerging countries will live above the line of poverty. That is because their strengthened money will reduce inflation in the country; therefore, the deprivation reduces. As a result, the emerging countries will control poverty and give their people a normal lifestyle.Under-control Inflation:
One positive thing happens that the inflation will come under control, and the poor will start to live an everyday life with fundamental rights like food, home, and working opportunities. The tiny change brings enormous benefits to the countries' development. Denomination of Currency will help out the emerging countries to get rid of inflation unless it controls inflation.No Super Power:
Devaluation of money will declare there is no superpower in the world. Fewer denominations of currencies lead the world to equal or close to equal status. Therefore the manipulation of vulnerable economic countries will reduce.Countries Independence:
Due to fewer denominations, most countries will become independent and operationally work independently; if a country does not depend on other countries for anything, they will not make deals. Therefore bilateral policies may become useless, and interdepending on each other, may lose their value.Struggle for Alliances:
To control the supremacy struggle for alliances gain speed. Countries will show eagerness to make alliances to strengthen their currencies and economies. But, unfortunately, that struggle may lead the world to polarizations.Conclusion:
Humanity would come against the business if Currency in all countries had Fewer Denominations. The condition will favor emerging countries against the developed countries. That way, emerging countries enjoy the exact status of the developed countries. But it brings huge disaster in business fields and political grounds. Power struggles may lead the world to disastrous distractions for an extended period. And end on no progress, but the only failure.
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