More common currencies



African central bank chiefs aren't the only ones discussing the possibility of a common currency. An Australian Senate report has recently suggested a single currency for the Pacific, prompting opposition from Fiji:

Fiji would resist any attempt to introduce a single currency for Pacific Island countries, Prime Minister Laisenia Qarase said during the 34th Pacific Forum meeting in Auckland.



"It is totally out of tune for Fiji. It is far-fetched and will not work at least as far as we are concerned and we will oppose any move in the direction," he said.



"The Fiji dollar has done well and will continue to remain in favour of exporters, importers and investors. I do not think the creation of a single currency will help our economy.



"The euro is still struggling and many countries appear to be having second thoughts on its effectiveness and we will not make such a mistake."

As in Africa, it is unlikely that a Pacific currency will be implemented anytime soon; the Australian prime minister has termed the idea "premature" notwithstanding the Senate report. In some ways, a Pacific currency centered on Australia would make more sense than a common African currency; many Pacific economies are oriented toward trade with Australia, and Pacific countries (with the exception of Fiji) tend to be too small for effective economies of scale in banking and currency exchange. Any move toward a single currency, however, is likely to be viewed as a power grab by Canberra, and as such will spark intense political opposition.