Currency union

A currency union is an agreement between two or more countries to share a single currency, such as the Euro used by many European nations. This means they use the same money for transactions, trade, and travel, and often coordinate their economic policies. The main advantage is smoother cross-border trade and economic stability, while challenges include losing individual monetary control and needing to work together on economic issues. Currency unions foster closer economic ties and can promote regional integration but require strong cooperation and shared economic goals among member countries.