North American Union

Common Currency - The Final Stage of Integration


The 'Amero' as a common currency for the common market (free trade area) of the North American Union sounds like a bad joke - but it isn't.  So far there are only articles and academic papers on the subject, but one doesn't need to be a banker to realize that the merger of Canada, Mexico and the United States will necessitate the creation of common currency.  There is nothing official that says that the name of it would be the Amero but considering that Europe's common currency is called the Euro it seems an obvious choice (standardization).    

Creating a single currency won't happen until financial systems are integrated.  That integration and harmonization is in progress. 

Video - CNBC - November 27, 2006, Steve Previs, VP, Jeffries International, LTD.   "The Amero" 

From the U.S. Embassy in Mexico - U.S. Mexico - Financial Initiatives

"The U.S. Small Business Administration (SBA) will continue the development of, and training for, new Small Business Development Centers (SBDC) in Mexico. SBA is also working with NAFIN in the development of a venture capital program, and with Economía in the adaptation of SBA programs to encourage the development and growth of Mexico’s small business enterprises."

Over the past year, the U.S. Trade & Development Agency (USTDA) provided grant and project development funding for 12 priority activities in Mexico, ranging in scope from airport modernization to venture capital industry development, water/waste systems, intelligent transportation networks and housing finance. Through P4P, USTDA continues promoting Mexico’s infrastructure, transportation, and financial service sectors through feasibility studies and technical assistance grants.

To increase competition in remittance services, private financial institutions have expanded remittance services over the last year and U.S. financial agencies continue their focus on promoting financial literacy to increase access to and awareness of remittance services. For example, the Federal Deposit Insurance Corporation (FDIC)’s Money Smart program has provided financial training to over 35,000 Mexican immigrants in the United States.

The Bank of Mexico (Banxico) and the U.S. Federal Reserve System commenced one-way operations last year of the TEFI/ Fed Automated Clearing House (ACH) International Mexico Service. This system provides for low-cost government and commercial cross-border payments through improving the financial interconnection of both countries supporting Mexico’s financial infrastructure. The program is expected to be fully operational in 2005, allowing financial institutions to carry out cross-border transactions in both directions.

More From the U.S. Mexican Embassy - Economic Initiatives - U.S. Corporations


Articles and Studies on the "Amero"

1999 Case for the Amero - Fraser Institute, Study by Herbert Grubel   Executive Summary

2001 - A Common Currency for the Americas?

Amero Currency   Website

The 'Amero': What of sovereignty?   Pittsburgh-Tribune Review, May 27, 2006

The Plan to Replace the Dollar With the 'Amero'   Human Events Online, Jerome Corsi, May 22, 2006

American Currency Union    Wikipedia  (why they say it's not likely to be implemented soon is anybody's guess given the pace of integration)

CFR Making Moves on American Sovereignty   American Free Press, Ralph Forbes, June 26, 2006

Scholarly Articles

2004 - North American Monetary Union - A United States Perspective, Benjamin Cohen, University of California

2000 - Perspectives on a Potential North American Monetary Union, Michael Christz,  Federal Reserve Bank of Atlanta

1999 Canada Should Pursue North American Currency Union, Economists Say, Howe Institute

The Pros and Cons of North American Monetary Integration,  Sven Arndt, Claremont-McKenna College

Monetary Integration In the NAFTA Countries - Selected LinksLink from Council of the Americas Website

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