One recurrent debate among countries in the same region is whether to use a common currency among them. The United States, Canada, and Mexico face a similar situation, but they have not reached a consensus. On the other hand, it is essential for countries that share a common currency to have optimal economic circumstances and regional backgrounds. Likewise, the three nations should have a similar legal tender, which will make them compete with others like the Euro. However,introducing a common currency in the United States, Canada, and Mexico has several rewards and shortcomings.

Primarily, a shared currency would bring significant economic benefits to its member countries. The move would moderate all border charges andthe nations would have better bargaining power with countries that do not have a common currency. Similarly, the governments of the member countries would support each other if one of them encounters an economic challenge. As a result, the states would have a robust economy if they agree to have a common currency.

Another benefit that the three countries would get is the removal of perils that accompany the exchange rate. For example, the members would have to do fewer calculations and record keepingrelated to exchange rates than they do. Likewise, they would have to do considerably fewer calculations to hedge against the related gains and losses. The move would also decreasethe riskpremium, which would then moderate the interest rates on bonds. Indeed, a common currency would help to reduce the challenges of exchange rates.

Conversely, a common currency would cause political turmoil in the three countries. Although it is a great idea, implementing it would be significantly complicated if the members do not prepare for the consequences. The initial stage of executing a joint currency would lead to a fragile economy in the member states. Accordingly, some members would reject the agreement in a bid to retain economic stability. The disagreements would introduce political confusion, which would cause the members to withdraw the currency arrangement. As a result, the countries would find themselves in a worse economic position than they were before the consensus. Indeed, the implementation process would trigger political instability if the three countries do not prepare for the projected outcomes.

Moreover, the accord would introduce an identity crisis in the member states because it would eliminate the individual currencies. Most countries use money as a symbol of identity and independence; therefore, they would be scared of losing a significant part what defines them. Similarly, the states would not be ready to depend on each other economically because they would have to forgo some nationalistic values. Consequently, the agreement would cause identity confusion, as each country would try to look for another emblem of uniqueness.

The possibility of a complementary currency in the United States, Canada, and Mexico draws a lot of attention. Those who support the agreement focus on the advantages and those who are against it rely on its drawbacks. A shared currency improves the economic stability and reduces the complications associated with exchange rates. On the contrary, the move would cause political insecurity and identity crisis in the countries. Although the agreement has its shortcomings, the three states should put more focus on its benefits. As a result, they should ignore any impediments and introduce one common currency eventually.

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