Open Access Articles- Top Results for Currency union

Currency union

A currency union (also known as monetary union) is where two or more states share the same currency, though without there necessarily having any further integration such as an Economic and Monetary Union, which has, in addition, a customs union and a single market.

There are three types of currency unions:

  1. Informal – unilateral adoption of foreign currency[citation needed]
  2. Formal – adoption of foreign currency by virtue of bilateral or multilateral agreement with the issuing authority, sometimes supplemented by issue of local currency in currency peg regime
  3. Formal with common policy – establishment by multiple countries of common monetary policy and issuing authority for their common currency

The theory of the optimal currency area addresses the question of how to determine what geographical regions should share a currency in order to maximize economic efficiency.

List of currency unions


Every Customs and monetary union and Economic and monetary union also has a currency union; these are not listed below.

Currency Union Users Est. Status Population GDP (nominal $)
CFA franc Issued by the (French) Overseas Issuing Institute between 1945−1962 then by the Central Bank of West African States and the Bank of Central African States 23x15px Benin
23x15px Burkina Faso
23x15px Côte d'Ivoire
23x15px Guinea-Bissau
23x15px Mali
23x15px Niger
23x15px Senegal
23x15px Togo
23x15px Cameroon
23x15px Central African Republic
23x15px Chad
23x15px Republic of the Congo
23x15px Equatorial Guinea
23x15px Gabon
1945 Formal, common policy 151,978,440
CFP franc Issued by the (French) Overseas Issuing Institute 23x15px French Polynesia
23x15px New Caledonia
23x15px Wallis and Futuna
1945 Formal, common policy 552,537
East Caribbean dollar Eastern Caribbean Currency Union of the OECS 23x15px Anguilla
23x15px Antigua and Barbuda
23x15px Dominica
23x15px Grenada
23x15px Montserrat
23x15px Saint Kitts and Nevis
23x15px Saint Lucia
23x15px Saint Vincent and the Grenadines
1965 Formal, common policy
de facto EMU for CSME members[1]
Euro International status and usage of the euro 23x15px Eurozone:

23x15px Austria
23x15px Belgium
23x15px Cyprus
23x15px Estonia
23x15px Finland
23x15px France
23x15px Germany
23x15px Greece
23x15px Ireland
23x15px Italy
23x15px Latvia
23x15px Lithuania
23x15px Luxembourg
23x15px Malta
23x15px Netherlands
23x15px Portugal
23x15px Slovakia
23x15px Slovenia
23x15px Spain

and EU special territories:
23x15px Akrotiri and Dhekelia (SBAs)
23x15px French Southern and Antarctic Lands
23x15px Saint Barthélemy
23x15px Saint Pierre and Miquelon

23x15px Andorra
23x15px Kosovo
23x15px Monaco
23x15px Montenegro
23x15px San Marino
23x16px  Vatican City

1999/2002 Formal, common policy and EMU for EU members
Formal for Monaco and SBAs (those form a de facto EMU with the Eurozone)
Formal for Andorra since 2011
Informal for Kosovo, Montenegro
Formal for the rest
Hong Kong dollar Template:Country data Hong Kong

23x15px Macau

1977 Informal; Decreto-Lei n.º 16/95/M prohibiting the refusal of the pataca by merchants and businesses.[2] 7,775,200
Singapore dollar

Brunei dollar

Managed together by the Monetary Authority of Singapore 23x15px Brunei

23x15px Singapore

1967 Formal; currencies mutually exchangeable[3] 5,137,000 36,438,000,000
Armenian dram 23x15px Armenia

23x15px Nagorno-Karabakh Republic

1994 Informal 3,368,900 18,715,000,000
Australian dollar 23x15px Australia

and external territories:
23x15px Ashmore and Cartier Islands
23x15px Australian Antarctic Territory
23x15px Christmas Island
23x15px Cocos (Keeling) Islands
23x15px Coral Sea Islands
23x15px Heard Island and McDonald Islands
23x15px Norfolk Island

Template:Country data Kiribati
23x15px Nauru
23x15px Tuvalu

1966 Informal 22,557,000
Pound sterling Sterling area (former) 23x15px United Kingdom

and overseas territories:
23x15px British Antarctic Territory
23x15px British Indian Ocean Territory
23x15px Falkland Islands
23x15px Gibraltar
23x15px Saint Helena, Ascension and Tristan da Cunha
23x15px South Georgia and the South Sandwich Islands

and crown dependencies:
23x15px Guernsey
23x15px Isle of Man
23x15px Jersey

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 Template:Country data India

23x15px Bhutan[4]
File:Flag of Nepal.svg   Nepal[5]

1974 Informal

Nepal minor usage

New Zealand dollar 23x15px New Zealand

and dependencies:
23x15px Tokelau
23x15px Ross Dependency

23x15px Cook Islands
23x15px Nauru
23x15px Niue
23x15px Pitcairn Islands

1967 Informal 4,411,000
Israeli new sheqel Template:Country data Israel

23x15px Palestine

1927/1986 Informal 11,738,000
Jordanian dinar[citation needed] Template:Country data Jordan

23x15px Palestine (West Bank only)

Informal 8,922,000
Russian ruble Template:Country data Russia(Crimea uses Ruble as well-Area under dispute)

23x15px Abkhazia
23x15px South Ossetia

2008 Informal 142,177,000
South African rand Multilateral Monetary Area 23x15px Lesotho

23x15px Namibia
23x15px South Africa
23x15px Swaziland

1974 Formal
de facto customs and monetary union for SACU members
52,924,669 316,936,000,000
Swiss franc 23x15px Liechtenstein

23x16px  Switzerland

1920 Informal
since 1924 creation of a customs union and common market in EFTA in a de facto EMU
7,774,546 497,171,000,000
Turkish lira 23x15px Turkey

23x15px Turkish Republic of Northern Cyprus

1983 Informal 75,081,100 734,043
United States dollar 23x15px United States

and insular areas:
23x15px American Samoa
23x15px Guam
23x15px United States Minor Outlying Islands
23x15px Northern Mariana Islands
23x15px Puerto Rico
23x15px United States Virgin Islands

23x15px Ecuador
23x15px El Salvador
23x15px Panama
23x15px Marshall Islands
23x15px Federated States of Micronesia
23x15px Palau
23x15px Timor-Leste
23x15px Turks and Caicos Islands
23x15px British Virgin Islands
23x15px BES islands


(Panama only)

Formal for insular areas and sovereign status with Compact of Free Association,[6] informal for other areas 339,300,000

23x15px Zimbabwe is theoretically in a currency union with four blocs as the South African rand, Botswana pula, British pound and US dollar freely circulate, the US Dollar being official tender. [1].

File:Currency union.PNG
Currency unions

Additionally the autonomous and dependent territories, such as some of the EU member state special territories, are sometimes treated as separate customs territory from their mainland state or have varying arrangements of formal or de facto customs union, common market and currency union (or combinations thereof) with the mainland and in regards to third countries through the trade pacts signed by the mainland state.[7]


Community Currency Region Target date Notes
Bolivarian Alternative for the Americas SUCRE Latin America
 ? It is planned to begin as an electronic currency involving all countries of the Bolivarian Alliance for the Americas.
East African Community East African shilling Africa 2015
West African Monetary Zone Eco Africa 2020 Inside Economic Community of West African States, planned to eventually merge with West African franc
ASEAN+3 Asian Monetary Unit Asia  ? a free trade agreements matrix partially established
Cooperation Council for the Arab States of the Gulf Khaleeji Arabian Peninsula c. 2013-2020[8][9] Oman and the United Arab Emirates do not intend to adopt the currency at first but will do at a later date.


Never materialized

  • proposed Pan-American monetary union – abandoned in the form proposed by Argentina
  • proposed monetary union between the United Kingdom and Norway using the pound sterling during the late 1940s and early 1950s

See also


  1. Anguilla and Montserrat are members of OECS currency union, but not of the CSME.
  2. Decreto-Lei n. 16/95/M
  3. 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 was the united currency of large areas of the New World and South East Asia.
  4. alongside the ngultrum
  5. 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.
  6. Compact of Free Association, Article V, Section 251
  7. EU Overseas countries and some other territories participate partially in the EU single market per part four of the Treaty Establishing the European Community; Some EU Outermost regions and other territories use the Euro of the currency union, others are part of the customs union; some participate in both unions and some in neither.
    Territories of the United States, Australian External Territories and Realm of New Zealand territories share the currency and mostly also the market of their respective mainland state, but are generally not part of its customs territory.
  9. Invalid language code.
  10. 10.0 10.1 Bolton, Sally (10 December 2001). "A history of currency unions". Retrieved 26 February 2012. France persuaded Belgium, Italy, Switzerland and Greece 
  11. Not currently on any political agenda, based mostly off conspiracy theories.

Further reading

External links

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
Do the Mercosur Countries Form an Optimum Currency Area? 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
A single African currency in our time? South Africa proposes adoption of the rand as provisional SADC common currency

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