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UNITY (U)
A World Common and Stable Currency
Solution
- An Alternative to a Single Currency

By: A. Karim Afshar (PhD Finance)
2004

Executive Summary


The Unity (U) is a global single currency solution designed to mitigate the adverse impact of exchange rate volatility.



The Unity currency will be composed of a weighted average of around 15 prominent global currencies, creating the underlying portfolio or “Unity Basket”.



Changes to the value of a currency in the Unity Basket will only have an impact on the overall Unity value proportional to that currency’s portfolio weighting.



The Unity could be launched by a combination of the European Central Bank,
Bank of England or Federal Reserve. However, Unity supply must not be controlled by any single national government.



After its initial launch, market forces will ensure growth in demand and supply.



Preliminary demand is expected especially from countries with a high balance of trade, developing countries, consumers and small businesses.

2

UNITY (U) - A World Common Currency Solution
By: A.Karim Afshar (PhD Finance)
Introduction
Exchange rate volatility has become one of the greatest obstacles to the world’s economic stability and growth. A great many discussions have taken place on how to combat money market attacks on national currencies and how to keep currency fluctuations within economically tolerable levels. These discussions assume that the world financial system and currencies are and will be as we see them today.
In today’s world each currency has to be exchanged for major world currencies in order to purchase products of another nation. The reason being there is no international common currency. But why can we not, as producers and consumers of international products, have a common currency?
Is it not time to think of a world common

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