# Currency union

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Agreement involving states sharing a single currency

World map of current international currency unions:
  EUR [Euro](/source/Euro)

  USD [United States dollar](/source/United_States_dollar)

  CHF [Swiss franc](/source/Swiss_franc)

  INR [Indian rupee](/source/Indian_rupee)

  AUD [Australian dollar](/source/Australian_dollar)

  XCD [Eastern Caribbean dollar](/source/Eastern_Caribbean_dollar)

  ZAR [South African rand](/source/South_African_rand)

  XOF [West African CFA franc](/source/West_African_CFA_franc)

  XAF [Central African CFA franc](/source/Central_African_CFA_franc)

  XPF [CFP franc](/source/CFP_franc)

Part of a series on World trade Policy Import Export Balance of trade Trade law Trade pact Trade bloc Trade creation Trade diversion Export orientation Import substitution Trade finance Trade facilitation Trade route Domestic trade Tax Restrictions Trade barriers Tariffs Non-tariff barriers Import quotas Tariff-rate quotas Import licenses Customs duties Export subsidies Technical barriers Bribery Exchange rate controls Embargo Safeguards Countervailing duties Anti-dumping duties Voluntary export restraints History Mercantilism Protectionism Laissez-faire Free trade Economic nationalism Economic integration Organizations International Monetary Fund International Trade Centre World Trade Organization World Customs Organization International Chamber of Commerce Economic integration Preferential trading area Free-trade area Currency union Customs union Single market Economic union Fiscal union Customs and monetary union Economic and monetary union Issues Intellectual property rights Smuggling Competition policy Government procurement Global labor arbitrage Outsourcing Globalization Fair trade Trade justice Emissions trading Trade sanctions War Currency war Trade costs Trade war Trade and development Lists Imports Exports Balance of trade Tariffs Largest consumer markets Leading trade partners By country Trade mission Trading nation United States Argentina Pakistan Romania Vietnam India Theory Comparative advantage Competitive advantage Heckscher–Ohlin model New trade theory Economic geography Intra-industry trade Gravity model of trade Ricardian trade theories Balassa–Samuelson effect Linder hypothesis Leontief paradox Lerner symmetry theorem Terms of trade v t e

A **currency union** (also known as **monetary union**) is an intergovernmental [agreement](/source/Trade_agreement) that involves two or more [states](/source/State_(polity)) sharing the same [currency](/source/Currency). These states may not necessarily have any [further integration](/source/Economic_integration#Stages) (such as an [economic and monetary union](/source/Economic_and_monetary_union), which would have, in addition, a [customs union](/source/Customs_union) and a [single market](/source/Single_market)).

There are three types of currency unions:

- *Informal* – unilateral adoption of a [foreign currency](/source/Foreign_currency).[1]

- *Formal* – adoption of [foreign currency](/source/Foreign_currency) by virtue of bilateral or multilateral agreement with the [monetary authority](/source/Monetary_authority), sometimes supplemented by issue of local currency in [currency peg](/source/Currency_peg) regime.

- *Formal with common policy* – establishment by multiple countries of a common [monetary policy](/source/Monetary_policy) and [monetary authority](/source/Monetary_authority) for their common currency.

The theory of the [optimal currency area](/source/Optimal_currency_area) addresses the question of how to determine what geographical regions should share a currency in order to maximize economic efficiency.[2]

## Convergence and divergence

**Convergence** in terms of [macroeconomics](/source/Macroeconomics) means that countries have a similar economic behaviour (similar [inflation rates](/source/Inflation_rates) and [economic growth](/source/Economic_growth)). It is easier to form a currency union for countries with more convergence as these countries have the same or at least very similar goals. The [European Monetary Union](/source/European_Monetary_Union) (EMU) is a contemporary model for forming currency unions. Membership in the EMU requires that countries follow a strictly defined set of criteria (the member states are required to have a specific rate of inflation, [government deficit](/source/Government_deficit), [government debt](/source/Government_debt), long-term [interest rates](/source/Interest_rates) and [exchange rate](/source/Exchange_rate)). Many other unions have adopted the view that convergence is necessary, so they now follow similar rules to aim the same direction.

**Divergence** is the exact opposite of convergence. Countries with different goals are very difficult to integrate in a single currency union. Their economic behaviour is completely different, which may lead to disagreements. Divergence is therefore not optimal for forming a currency union.[3]

## History

The first currency unions were established in the 19th century. The German [Zollverein](/source/Zollverein) came into existence in 1834, and by 1866, it included most of the German states. The fragmented states of the German Confederation agreed on common policies to increase trade and political unity.

The [Latin Monetary Union](/source/Latin_Monetary_Union), comprising France, Belgium, Italy, Switzerland, and Greece, existed between 1865 and 1927, with coinage made of [gold](/source/Gold) and [silver](/source/Silver). Coins of each country were legal tender and freely interchangeable across the area. The union's success made other states join informally.

The [Scandinavian Monetary Union](/source/Scandinavian_Monetary_Union), comprising Sweden, Denmark, and Norway, existed between 1873 and 1905 and used a currency based on gold. The system was dissolved by Sweden in 1924.[4]

A currency union among the British colonies and protectorates in Southeast Asia, namely the Federation of Malaya, North Borneo, Sarawak, Singapore and Brunei was established in 1952. The Malaya and British Borneo dollar, the common currency for circulation was issued by the [Board of Commissioners of Currency, Malaya and British Borneo](/source/Board_of_Commissioners_of_Currency%2C_Malaya_and_British_Borneo) from 1953 until 1967. Following the cessation of the common currency arrangement, Malaysia (the combination of Federation of Malaya, North Borneo, Sarawak), Singapore and Brunei began issuing their own currencies. Contemporarily, a currency reunion of these countries might still be feasible based on the findings of economic convergence.[5][6]

## List of currency unions

### Existing

Currency Union Users Est. Status Population CFA franc Issued by the (French) Overseas Issuing Institute between 1945 and 1962 then by the Central Bank of West African States and the Bank of Central African States West African CFA franc users: Benin Burkina Faso Côte d'Ivoire Guinea-Bissau Mali Niger Senegal Togo Central African CFA franc users: Cameroon Central African Republic Chad Equatorial Guinea Gabon Republic of the Congo 1945 Formal, common policy 151,978,440 CFP franc Issued by the (French) Overseas Issuing Institute French Polynesia New Caledonia Wallis and Futuna 1945 Formal, common policy 552,537 Eastern Caribbean dollar Eastern Caribbean Currency Union of the Eastern Caribbean Central Bank (ECCB) and the OECS. Anguilla Antigua and Barbuda Dominica Grenada Montserrat Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines 1965 Formal, common policy de facto EMU for CSME members[7] 625,000 Euro International status and usage of the euro Eurozone: Austria Belgium Bulgaria Croatia Cyprus Estonia Finland France Germany Greece Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Portugal Slovakia Slovenia Spain and EU special territories: French Southern and Antarctic Lands Saint Barthélemy Saint Pierre and Miquelon Akrotiri and Dhekelia Andorra Kosovo Monaco Montenegro San Marino Vatican City 1999/2002 Formal, common policy and EMU for EU members Formal for Monaco and Akrotiri and Dhekelia (which form part of the EU's customs territory) Informal for Kosovo, Montenegro Formal for Andorra and San Marino (which are in customs union with the EU's customs territory) 351,379,988 Singapore dollar Brunei dollar Managed together by the Monetary Authority of Singapore Brunei Singapore 1967 Formal; currencies mutually exchangeable[8] 5,137,000 Australian dollar Australia and external territories: Ashmore and Cartier Islands Australian Antarctic Territory Christmas Island Cocos (Keeling) Islands Coral Sea Islands Territory Heard Island and McDonald Islands Norfolk Island Kiribati Nauru Tuvalu 1966 Informal 24,557,000 Pound sterling Sterling area (former) United Kingdom and Overseas Territories: British Antarctic Territory British Indian Ocean Territory Falkland Islands Gibraltar Saint Helena, Ascension and Tristan da Cunha South Georgia and the South Sandwich Islands and Crown Dependencies: Bailiwick of Guernsey Bailiwick of Jersey Isle of Man 1939 Semi-formal. UK banknotes are legal tender in locations outside the UK. Local currencies are pegged to the GBP but not necessarily accepted in the UK: Guernsey pound, Manx pound, Jersey pound and Alderney pound, Falkland Islands pound, Gibraltar pound, Saint Helena pound 62,321,000 Indian rupee India Bhutan[9] Nepal[10] 1974 Informal Nepal minor usage 1,352,000,000 New Zealand dollar New Zealand and Realm: Cook Islands Niue Tokelau Pitcairn Islands 1967 Informal 4,411,000 Israeli new sheqel Israel Palestine 1927/1986 Informal 11,738,000 Jordanian dinar[11][12] Jordan Palestine (West Bank only) Informal 8,922,000 Egyptian pound Egypt Palestine (Gaza Strip only) Informal 109,450,000 Russian ruble Russia Abkhazia South Ossetia 2008 Informal 142,177,000 South African rand Multilateral Monetary Area Lesotho Namibia South Africa Eswatini 1974 Formal de facto customs and monetary union for the SACU member countries 52,924,669 Swiss franc Liechtenstein Switzerland 1920 Informal de facto economic and monetary union—1924 creation of a customs union, then members of the European Free Trade Association (a common market), and now also part of the European Single Market. 8,547,015 Turkish lira Turkey Turkish Republic of Northern Cyprus 1983 Informal 75,081,100 United States dollar United States and insular areas: American Samoa Guam United States Minor Outlying Islands Northern Mariana Islands Puerto Rico United States Virgin Islands and Compact of Free Association members: Marshall Islands Federated States of Micronesia Palau Ecuador El Salvador Panama Timor-Leste Turks and Caicos Islands British Virgin Islands BES islands 1904 (Panama only) Formal for insular areas and sovereign status with Compact of Free Association,[13] informal for other areas 339,300,000

Note: Every [customs and monetary union](/source/Customs_and_monetary_union) and [economic and monetary union](/source/Economic_and_monetary_union) also has a currency union.

[Zimbabwe](/source/Zimbabwe) is theoretically in a currency union with four blocs as the South African rand, [Botswana pula](/source/Botswana_pula), British pound and US dollar freely circulate. The US Dollar was, until 2016, official tender.[14]

Additionally, the [autonomous](/source/List_of_autonomous_areas_by_country) and [dependent](/source/Dependent_territory) territories, such as some of the [EU member state special territories](/source/Special_member_state_territories_and_the_European_Union), are sometimes treated as separate [customs territory](/source/Customs_territory) from their mainland state or have varying arrangements of formal or de facto [customs union](/source/Customs_union), [common market](/source/Single_market) and currency union (or combinations thereof) with the mainland and in regards to third countries through the [trade pacts](/source/Trade_agreement) signed by the mainland state.[15]

#### Currency union in Europe

The European currency union is a part of the [Economic and Monetary Union of the European Union](/source/Economic_and_Monetary_Union_of_the_European_Union) (EMU). EMU was formed during the second half of the 20th century after historic agreements, such as [Treaty of Paris (1951)](/source/Treaty_of_Paris_(1951)), [Maastricht Treaty](/source/Maastricht_Treaty) (1992). In 2002, the [euro](/source/Euro), a single European currency, was adopted by 12 member states. Currently, the [Eurozone](/source/Eurozone) has 21 member states. The other members of the European Union are required to adopt the euro as their currency (except for Denmark, which has been given the right to opt out), but there has not been a specific date set. The main independent institution responsible for stability of the euro is the [European Central Bank](/source/European_Central_Bank) (ECB). The [Eurosystem](/source/Eurosystem) groups together the ECB and the national central banks (NCBs) of the Member States whose currency is the euro. The [European System of Central Banks](/source/European_System_of_Central_Banks) (ESCB) is made up of the ECB and the national central banks of all Member States of the [European Union](/source/European_Union) (EU), regardless of whether or not they have adopted the euro. The Governing Board consists of the executive committee of the ECB and the governors of individual national banks, and determines the monetary policy, as well as short-term monetary objectives, key interest rates and the extent of monetary reserves.[16]

### Planned

See also: [List of proposed currencies](/source/List_of_proposed_currencies)

Community Currency Region Target date Notes East African Community East African shilling Africa 2012 (not met), 2015 (not met), 2024 (not met),[17] 2031[18] West African Monetary Zone Eco Africa 2027 Inside Economic Community of West African States, planned to eventually merge with West African franc ASEAN+3 Asian Monetary Unit [citation needed] Asia ? a free trade agreements matrix partially established Cooperation Council for the Arab States of the Gulf Khaleeji Arabian Peninsula ? Oman and the United Arab Emirates do not intend to adopt the currency at first but will do at a later date. African Economic Community Afro or Afriq Africa 2028[19] Planned for 2028 or later Brazil, Argentina and possibly other countries Sur Latin America ? As Financial Times reports, Brazil and Argentina will announce in January 2023 that they are starting preparatory work on a common currency "Sur" (South). The initiative would later be extended to invite other Latin American nations.[20]

### Disbanded

See also: [Bretton Woods Conference](/source/Bretton_Woods_Conference)

- between [Bahrain](/source/Bahrain) and [Abu Dhabi](/source/Emirate_of_Abu_Dhabi) using the [Bahraini dinar](/source/Bahraini_dinar)

- between [Bahrain](/source/Bahrain), [Kuwait](/source/Sheikhdom_of_Kuwait), [Oman](/source/Oman_proper), [Qatar](/source/Qatar) and the [Trucial States](/source/Trucial_States), using the [Gulf rupee](/source/Gulf_rupee) from 1959 until 1966

- between [Aden](/source/Colony_of_Aden), [South Arabia](/source/Federation_of_South_Arabia), [Bahrain](/source/Bahrain), [Kenya](/source/Kenya_Colony), [Kuwait](/source/Sheikhdom_of_Kuwait), [Oman](/source/Oman_proper), [Qatar](/source/Qatar), [British Somaliland](/source/British_Somaliland), the [Trucial States](/source/Trucial_States), [Uganda](/source/Uganda_Protectorate), [Zanzibar](/source/Sultanate_of_Zanzibar) and [British India](/source/British_India) (later independent [India](/source/India)) using the [Indian rupee](/source/Indian_rupee) until 1974

- between [Belgium](/source/Belgium) and the Grand-Duchy of [Luxemburg](/source/Luxemburg) ([Belgium-Luxembourg Economic Union](/source/Belgium-Luxembourg_Economic_Union)) using the [Belgian/Luxembourgish franc](/source/Belgian_franc) from 1921 to the Euro

- between [British India](/source/British_India) and the [Straits Settlements](/source/Straits_Settlements) (1837–1867) using the [Indian rupee](/source/Indian_rupee)

- between [Czech Republic](/source/Czech_Republic) and [Slovakia](/source/Slovakia) (briefly from January 1, 1993, to February 8, 1993) using the [Czechoslovak koruna](/source/Czechoslovak_koruna)

- between [Ethiopia](/source/Ethiopia) and [Eritrea](/source/Eritrea) using the [Ethiopian birr](/source/Ethiopian_birr)

- between [France](/source/France), [Monaco](/source/Monaco), and [Andorra](/source/Andorra) using the [French franc](/source/French_franc)

- between Austria-Hungary and [Liechtenstein](/source/Liechtenstein) using the [Austro-Hungarian krone](/source/Austro-Hungarian_krone)

- between the [Eastern Caribbean](/source/Organization_of_Eastern_Caribbean_States), [Jamaica](/source/Colony_of_Jamaica), [Barbados](/source/History_of_Barbados), [Trinidad and Tobago](/source/Trinidad_and_Tobago) and [British Guiana](/source/British_Guiana) using the [British West Indies dollar](/source/British_West_Indies_dollar)

- between the [Eastern Caribbean](/source/Organization_of_Eastern_Caribbean_States), [Barbados](/source/History_of_Barbados), [Trinidad and Tobago](/source/Trinidad_and_Tobago) and [British Guiana](/source/British_Guiana) using the [Eastern Caribbean dollar](/source/Eastern_Caribbean_dollar)

- between [Italy](/source/Italy), [Vatican City](/source/Vatican_City), and [San Marino](/source/San_Marino) using the [Italian lira](/source/Italian_lira)

- between [Jamaica](/source/Jamaica) and the [Cayman Islands](/source/Cayman_Islands) using the [Jamaican pound](/source/Jamaican_pound) and later [Jamaican dollar](/source/Jamaican_dollar)

- between [Kenya](/source/Kenya_Colony), [Uganda](/source/Uganda_Protectorate), and [Zanzibar](/source/Sultanate_of_Zanzibar) using the [East African rupee](/source/East_African_rupee)

- between [Kenya](/source/Kenya_Colony), [Uganda](/source/Uganda_Protectorate), and [Zanzibar](/source/Sultanate_of_Zanzibar) (and later [Tanganyika](/source/Tanganyika_Territory)) using the [East African florin](/source/East_African_florin)

- between [Kenya](/source/Kenya), [Tanganyika](/source/Tanganyika_Territory) and [Zanzibar](/source/Zanzibar) (later merged as [Tanzania](/source/Tanzania)), [Uganda](/source/Uganda), [South Arabia](/source/South_Arabia), [British Somaliland](/source/British_Somaliland) and [Italian Somaliland](/source/Italian_Somaliland) using the [East African shilling](/source/East_African_shilling)

- [Latin Monetary Union](/source/Latin_Monetary_Union) (1865–1927), initially between [France](/source/France), [Belgium](/source/Belgium), [Italy](/source/Italy) and [Switzerland](/source/Switzerland), and later involving [Greece](/source/Greece),[21] [Romania](/source/Romania), [Spain](/source/Spain) and other countries.

- between [Liberia](/source/Liberia) and the [United States](/source/United_States) using the [United States dollar](/source/United_States_dollar)

- between [Mauritius](/source/Mauritius) and [Seychelles](/source/Seychelles) using the [Mauritian rupee](/source/Mauritian_rupee)

- between [Nigeria](/source/Colonial_Nigeria), the [Gambia](/source/Gambia_Colony_and_Protectorate), [Sierra Leone](/source/Sierra_Leone_Colony_and_Protectorate), [the Gold Coast](/source/Gold_Coast_(British_colony)) and [Liberia](/source/Liberia) using the [British West African pound](/source/British_West_African_pound)

- between [Prussia](/source/Kingdom_of_Prussia) and the North German states (1838–1857) using the [North German thaler](/source/Prussian_thaler)

- between [Russia](/source/Russia) and the [former Soviet republics](/source/Post-Soviet_states) (1991–1993) using the [Soviet ruble](/source/Soviet_ruble)

- between [Armenia](/source/Armenia) and [Artsakh](/source/Republic_of_Artsakh) using the [Armenian dram](/source/Armenian_dram)

- between [Qatar](/source/Qatar) and all the emirates of the [United Arab Emirates](/source/United_Arab_Emirates), except [Abu Dhabi](/source/Abu_Dhabi) using the [Qatari and Dubai riyal](/source/Qatari_and_Dubai_riyal)

- between [Saudi Arabia](/source/Saudi_Arabia) and [Qatar](/source/Qatar) using the [Saudi riyal](/source/Saudi_riyal)

- between [Western Samoa](/source/Western_Samoa_Trust_Territory) and [New Zealand](/source/New_Zealand) using the [New Zealand pound](/source/New_Zealand_pound)

- [Scandinavian Monetary Union](/source/Scandinavian_Monetary_Union) (1870s until 1924), between [Denmark](/source/Denmark), [Norway](/source/Norway) and [Sweden](/source/Sweden)[21]

- between the [Solomon Islands](/source/Solomon_Islands), [Papua New Guinea](/source/Papua_New_Guinea) and [Australia](/source/Australia) using the [Australian dollar](/source/Australian_dollar)

- between [Australia](/source/Australia), [Papua](/source/Territory_of_Papua), [New Guinea](/source/Territory_of_New_Guinea), [Nauru](/source/History_of_Nauru), the [Solomon Islands](/source/British_Solomon_Islands), and the [Gilbert and Ellice Islands](/source/Gilbert_and_Ellice_Islands) using the [Australian pound](/source/Australian_pound)

- between [Bavaria](/source/Bavaria), [Baden](/source/Baden), [Württemberg](/source/W%C3%BCrttemberg), [Frankfurt](/source/Free_City_of_Frankfurt), and [Hohenzollern](/source/House_of_Hohenzollern) using the [South German guilder](/source/South_German_gulden)

- between [Spain](/source/Spain) and [Andorra](/source/Andorra) using the [Spanish peseta](/source/Spanish_peseta)

- between [Trinidad and Tobago](/source/Trinidad_and_Tobago) and [Grenada](/source/Grenada) using the [Trinidad and Tobago dollar](/source/Trinidad_and_Tobago_dollar)

- between [Brunei](/source/Brunei), [Malaysia](/source/Malaysia), and [Singapore](/source/Singapore) (1953–1967) using the [Malaya and British Borneo dollar](/source/Malaya_and_British_Borneo_dollar)

- between [Cambodia](/source/French_protectorate_of_Cambodia), [Laos](/source/French_protectorate_of_Laos), [Guangzhouwan](/source/Guangzhouwan), [Annam](/source/Annam_(French_protectorate)), [Tonkin](/source/Tonkin_(French_protectorate)), and [Cochinchina](/source/French_Cochinchina) (later [Vietnam](/source/State_of_Vietnam)) between 1885 and 1952 using the [French Indochinese piastre](/source/French_Indochinese_piastre)

- between [South Africa](/source/South_Africa), [South West Africa](/source/South_West_Africa), and [Bechuanaland](/source/Bechuanaland_Protectorate) (later independent [Botswana](/source/Botswana)) using the [South African rand](/source/South_African_rand)

- between [Egypt](/source/Egypt), [Anglo-Egyptian Sudan](/source/Anglo-Egyptian_Sudan), and [Mandatory Palestine](/source/Mandatory_Palestine) (until 1926) using the [Egyptian pound](/source/Egyptian_pound)

- between [West Germany](/source/West_Germany) and [East Germany](/source/East_Germany) between 1 July 1990 and 3 October 1990, as part of a temporary, so-called "Monetary, Economic and Social Union" prior to [German reunification](/source/German_reunification).

- between what ultimately became the [Republic of Ireland](/source/Republic_of_Ireland) and the [United Kingdom](/source/United_Kingdom), between 1928 and 1979. The [Irish Pound](/source/Irish_Pound) was held at exactly the same value as Sterling for this period, although it was not accepted for payments in the UK.

- [Yen Bloc](/source/Yen_Bloc) (between 1905 and 1945), between the [Empire of Japan](/source/Empire_of_Japan), the [Korean Empire](/source/Korean_Empire), [Manchukuo](/source/Manchukuo), [Mengjiang](/source/Mengjiang), the [Wang Jingwei regime](/source/Wang_Jingwei_regime), and Japanese-occupied Southeast Asia prior to and during World War II.

### Never materialized

- proposed Pan-American monetary union – abandoned in the form proposed by [Argentina](/source/Argentina)

- proposed monetary union between the [United Kingdom](/source/United_Kingdom) and [Norway](/source/Norway) using the [pound sterling](/source/Pound_sterling) during the late 1940s and early 1950s

- proposed gold-backed, pan-African monetary union put forward by [Muammar Gaddafi](/source/Muammar_Gaddafi) prior to his death

## See also

- [Money portal](https://en.wikipedia.org/wiki/Portal:Money)
- [Numismatics portal](https://en.wikipedia.org/wiki/Portal:Numismatics)

- [List of pegged currencies](/source/List_of_circulating_fixed_exchange_rate_currencies)

- [North American Currency Union](/source/North_American_Currency_Union) (Amero)[22]

## References

1. **[^](#cite_ref-1)** ["World Bank"](http://siteresources.worldbank.org/PGLP/Resources/Session9.pdf) (PDF). *WorldBank.org*. Retrieved 30 April 2019.

1. **[^](#cite_ref-2)** Hafner, Kurt A.; Jager, Jennifer. ["The Optimum Currency Area Theory and the EMU"](https://www.intereconomics.eu/contents/year/2013/number/5/article/the-optimum-currency-area-theory-and-the-emu.html). *Intereconomics*. Retrieved 1 April 2021.

1. **[^](#cite_ref-3)** Enoch, Charles; Krueger, Russell. ["Currency unions: key variables, definitions, measurement, and statistical improvement"](https://www.bis.org/ifc/publ/ifcb32j.pdf) (PDF). *Bank for International Settlements*. Retrieved 30 April 2019.

1. **[^](#cite_ref-4)** Bolton, Sally (10 December 2001). ["History of currency unions"](https://www.theguardian.com/world/2001/dec/10/euro.eu). *The Guardian*. Retrieved 30 April 2019.

1. **[^](#cite_ref-5)** ["History of Money in Malaysia: Colonial Notes & Coins"](https://web.archive.org/web/20110722233307/http://moneymuseum.bnm.gov.my/index.php?ch=8&pg=14&ac=38). Bank Negara Malaysia. 2010. Archived from [the original](http://moneymuseum.bnm.gov.my/index.php?ch=8&pg=14&ac=38) on 22 July 2011. Retrieved 5 July 2021.

1. **[^](#cite_ref-6)** Quah, C. H.; Ho, Y. J. (2020). ["Economic Feasibility of Malaysia and Singapore-Brunei Monetary Reunion: A Scrutiny during Major Financial Crises"](https://so01.tci-thaijo.org/index.php/AEJ/article/view/222909/163771). *Applied Economics Journal*. **27** (1): 23–51.

1. **[^](#cite_ref-7)** [Anguilla](/source/Anguilla) and [Montserrat](/source/Montserrat) are members of OECS currency union, but not of the CSME.

1. **[^](#cite_ref-8)** To all intents and purposes a monetary union. They are the last two nations whose dollars have remained at par and mutually interchangeable since the days when the [Spanish Dollar](/source/Spanish_Dollar) was the united currency of large areas of the [New World](/source/New_World) and [Southeast Asia](/source/Southeast_Asia).

1. **[^](#cite_ref-9)** alongside the [ngultrum](/source/Bhutanese_ngultrum)

1. **[^](#cite_ref-10)** Not official, but freely used as a tender in Nepal, due to primarily the economic flux with India and also the instability caused by that country's civil war.

1. **[^](#cite_ref-11)** Zacharia, Janine (2010-05-31). ["Palestinian officials think about replacing Israeli shekel with Palestine pound"](https://www.washingtonpost.com/wp-dyn/content/article/2010/05/29/AR2010052903131.html). *The Washington Post and Times-Herald*. [ISSN](/source/ISSN_(identifier)) [0190-8286](https://search.worldcat.org/issn/0190-8286). Retrieved 2018-08-22.

1. **[^](#cite_ref-12)** Cobham, David (2004-09-15). ["Alternative currency arrangements for a new Palestinian state"](http://fmwww.bc.edu/repec/mmfc04/13.pdf) (PDF). In David Cobham (ed.). *The Economics of Palestine: Economic Policy and Institutional Reform for a Viable Palestine State*. London: Routledge. [ISBN](/source/ISBN_(identifier)) [9780415327619](https://en.wikipedia.org/wiki/Special:BookSources/9780415327619). Retrieved 2018-08-22.

1. **[^](#cite_ref-13)** ["Compact- Title 02 Article 05"](http://www.fsmlaw.org/compact/t02art05.htm). *www.fsmlaw.org*.

1. **[^](#cite_ref-14)** ["Zimbabwe abandons its currency"](https://news.bbc.co.uk/2/hi/africa/7859033.stm). 2009-01-29. Retrieved 2019-10-15.

1. **[^](#cite_ref-15)** EU [Overseas countries](/source/Overseas_Countries_and_Territories) and some other territories participate partially in the EU single market per [part four of the Treaty Establishing the European Community](http://eur-lex.europa.eu/en/treaties/dat/12002E/htm/C_2002325EN.003301.html) [Archived](https://web.archive.org/web/20131116105433/http://eur-lex.europa.eu/en/treaties/dat/12002E/htm/C_2002325EN.003301.html) 2013-11-16 at the [Wayback Machine](/source/Wayback_Machine); Some EU Outermost regions and other territories use the [Euro](/source/Euro) of the currency union, others are part of the [customs union](/source/European_Union_Customs_Union); some participate in both unions and some in neither. [Territories of the United States](/source/Territories_of_the_United_States), [Australian External Territories](/source/Australian_External_Territories) and [Realm of New Zealand](/source/Realm_of_New_Zealand) territories share the currency and mostly also the [market](/source/Single_market) of their respective mainland state, but are generally not part of its [customs territory](/source/Customs_territory).

1. **[^](#cite_ref-16)** ["European Union"](https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/economic-and-monetary-union_en). *Europa.eu*. Retrieved 30 April 2019.

1. **[^](#cite_ref-:0_17-0)** Asongu, Simplice; Nwachukwu, Jacinta; Tchamyou, Vanessa (2016-08-01). ["A Literature Survey on Proposed African Monetary Unions"](http://www.afridev.org/RePEc/agd/agd-wpaper/A-Literature-Survey-on-Proposed-African-Monetary-Unions.pdf) (PDF). *Journal of Economic Surveys*. **31** (3): 878–902. [doi](/source/Doi_(identifier)):[10.1111/joes.12174](https://doi.org/10.1111%2Fjoes.12174). [ISSN](/source/ISSN_(identifier)) [1467-6419](https://search.worldcat.org/issn/1467-6419). [S2CID](/source/S2CID_(identifier)) [38454408](https://api.semanticscholar.org/CorpusID:38454408).

1. **[^](#cite_ref-18)** ["Public Notice: Information About East Africa Currency Should Be Disregarded"](https://www.bot.go.tz/Adverts/PressRelease/en/2024030418585616.pdf) (PDF) (Press release). Bank of Tanzania. 2024-03-04.

1. **[^](#cite_ref-19)** ["A common currency at a later stage of Africa's economic integration"](https://www.brookings.edu/blog/africa-in-focus/2014/01/09/will-there-be-an-african-economic-community). 30 November 2001.

1. **[^](#cite_ref-20)** ["Brazil and Argentina to begin preparations for common currency, Financial Times reports"](https://www.reuters.com/markets/currencies/brazil-argentina-begin-preparations-common-currency-ft-2023-01-22/). *Reuters*. 2023-01-22. Retrieved 2023-01-22.

1. ^ [***a***](#cite_ref-bolton_21-0) [***b***](#cite_ref-bolton_21-1) Bolton, Sally (10 December 2001). ["A history of currency unions"](https://www.theguardian.com/world/2001/dec/10/euro.eu). guardian.co.uk. Retrieved 26 February 2012. France persuaded Belgium, Italy, Switzerland and Greece

1. **[^](#cite_ref-22)** Not currently on any political agenda, based mostly off conspiracy theories.

## Further reading

- [Acocella, N.](/source/Nicola_Acocella) and Di Bartolomeo, G. and Tirelli, P. [2007], ‘*Monetary conservatism and fiscal coordination in a monetary union*’, in: ‘*Economics Letters*’, 94(1): 56–63.

- Bergin, Paul (2008). ["Monetary Union"](http://www.econlib.org/library/Enc/MonetaryUnion.html). In [David R. Henderson](/source/David_R._Henderson) (ed.). *[Concise Encyclopedia of Economics](/source/Concise_Encyclopedia_of_Economics)* (2nd ed.). Indianapolis: [Library of Economics and Liberty](/source/Library_of_Economics_and_Liberty). [ISBN](/source/ISBN_(identifier)) [978-0865976658](https://en.wikipedia.org/wiki/Special:BookSources/978-0865976658). [OCLC](/source/OCLC_(identifier)) [237794267](https://search.worldcat.org/oclc/237794267).

## External links

Wikimedia Commons has media related to [Currency unions](https://commons.wikimedia.org/wiki/Category:Currency_unions).

- [West Africa opts for currency union](https://news.bbc.co.uk/2/hi/africa/721707.stm)

- [Economist- Antipodean currencies (Australia and New Zealand)](http://www.economist.com/displayStory.cfm?story_id=393224)

- [Reasons for the collapse of the Rouble Zone](https://web.archive.org/web/20081218230932/http://www.case.com.pl/upload/publikacja_plik/3460035_058e.pdf)

- [OECD Development Centre – the Rand Zone](http://www.oecd.org/dataoecd/52/15/23381692.pdf)

v t e Forms of economic integration Trade bloc Preferential trading area Free-trade area Economic partnership Passport-free zone Single market Economic union Customs union Monetary union Customs and monetary union Economic and monetary union Complete economic integration Shared policies Fiscal union Social union Political union Theory Economic integration effects Friction of distance Harmonisation of law Theory of the second best Regions Europe Latin America Middle East North America

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