Monday, May 21, 2007

The "Amero"

The Amero... the name, certainly, doesn't mean much to us. And it's not clear yet whether it would become true in the future. But the project is there, at least in David Dodge's mind, the Bank of Canada Governor.
The Amero is a proposed name that some have given to the prospect of single currency for North America (Canada, USA, Mexico), and the name is obviously inspired in the European Euro.
Mr. Dodge thinks that a single currency in North America is feasible, and even necessary to the eyes of some Canadians, since the Canadian Dollar has been becoming a very stable and high valued currency lately, which affects the competitiveness of Canadian products in foreign markets and discourages tourists to travel to Canada.
If the "Amero" becomes true someday, it is very possible that the currency is given a different and more familiar name to us: US Dollar. But first, it is necessary to bring authorities from the three countries to negotiate the terms in which that could be done. Would Canadians, Americans and Mexicans agree to have a common currency? Would that benefit the NAFTA countries altogether? Or would that be seen by some as giving up some of the sovereignty of the countries, which would raise some nationalistic feelings later on?
We don't know. It's not even clear if this will happen some day. For instance, Mr. Dodge will be retiring by the end of this year, and it's not known yet who will succeed him... and whether that person will have the "Amero" idea as a priority on their agenda.

With some information from The Globe and Mail.

2 Comments:

At 12:26 AM , Blogger David Wozney said...

A “Federal Reserve Note” is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as consisting of 1/42.2222 fine troy ounces of gold.

 
At 11:03 AM , Blogger Eddie said...

Nice info, thank you!

 

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