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Currency Union

A currency union is a group of countries that have agreed to adopt a common currency as their official national currency. In a currency union, the member countries give up their own national currencies and adopt the common currency, which is issued and managed by a central authority, such as a central bank.

There are several benefits to forming a currency union, including increased trade and investment among member countries, reduced transaction costs for businesses and consumers, and increased economic stability.

However, there are also challenges associated with currency unions, including the loss of monetary policy autonomy for member countries and the potential for economic imbalances among member countries.

See also: European Monetary Union (EMU)

See also

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