Abstract:

There are two trends in the process of global currency integration: one is the dollarization of currency; the other is the setting-up of a single currency zone. The practical motivations of the trends are: in the process of the economic globalization and the liberalization of finance, the currencies of small countries are no match for big countries; the academic explanation for that is that state authorities cannot control the situation when facing a trilemma, i.e. an independent monetary police, a steady exchange rate and the free flow of international capital. The dollarization of currency is at the cost of the currency sovereignty of a country, and the setting-up of a single currency zone is based on the homology of economies. So there certainly exist obstacles to both trends.

Key words: currency integration, dollarization, a single currency zone