Concept: Global Currency<br />Global Business Management<br />Abhik Tushar Das<br />EMBA10/ 20104001<br />
History<br />
Bimetallism (pre 1875)<br />
Classic Gold Standard (1875-1914)<br />
Great Depression + World War (1915-1929-1945)<br />
Bretton Woods (1945-1972)<br />
Special Drawing Rights (SDR)<br />
SDR Valuation<br />
Flexible Exchange Rate (1973 onwards)<br />Jamaican Agreement: demonetization of Gold acceptable to IMF members<br />Excha...
Trade between nations<br />The Free Trade Area: Equitable taxes and duties for member nations<br />The Custom Union: Commo...
Trade Agreements<br />
US$ Reserves<br />
Advantages of EMU<br />Significant reduction in Coverage ratio (the number of months that reserves could pay for imports w...
Hurdles in implementing Global Currency<br />
Hurdles in implementing Global Currency …contd<br />
Benefits of Global Currency<br />
Apprehensions<br />
Thank You<br />
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Concept of a Global Currency

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  • Dominance of Western Countries
  • Concept of a Global Currency

    1. 1. Concept: Global Currency<br />Global Business Management<br />Abhik Tushar Das<br />EMBA10/ 20104001<br />
    2. 2. History<br />
    3. 3. Bimetallism (pre 1875)<br />
    4. 4. Classic Gold Standard (1875-1914)<br />
    5. 5. Great Depression + World War (1915-1929-1945)<br />
    6. 6. Bretton Woods (1945-1972)<br />
    7. 7. Special Drawing Rights (SDR)<br />
    8. 8. SDR Valuation<br />
    9. 9. Flexible Exchange Rate (1973 onwards)<br />Jamaican Agreement: demonetization of Gold acceptable to IMF members<br />Exchange rates floats free based on BOP (Balance Of Payments), hence more volatile<br />US$ as the reserve currency: dependency on dollar for imports<br />Rise of Asian Economy and stagnation of Western Economy<br />
    10. 10. Trade between nations<br />The Free Trade Area: Equitable taxes and duties for member nations<br />The Custom Union: Common external trade policies<br />The Common Market: Mobility of Factors of production<br />The Economic Union: Use of common currency (fixed exchange rate among members)<br />
    11. 11. Trade Agreements<br />
    12. 12. US$ Reserves<br />
    13. 13. Advantages of EMU<br />Significant reduction in Coverage ratio (the number of months that reserves could pay for imports with no other funding)<br />Greater flexibility in trade with respect to movement of goods, services and factors of production across geographies<br />No fluctuations in exchange rates within members leading to stability and remote scope for arbitrage opportunities<br />Equates purchasing power parity of rich and poor nations<br />
    14. 14. Hurdles in implementing Global Currency<br />
    15. 15. Hurdles in implementing Global Currency …contd<br />
    16. 16. Benefits of Global Currency<br />
    17. 17. Apprehensions<br />
    18. 18. Thank You<br />

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