The second consideration for the formation of a monetary union is the desire to counteract perceived economic and political weakness which dates back to the period of colonial rules by putting in place regional institutions, of which a monetary union and common currency would be strong symbols. It would also appear that the launching of the European monetary union has influenced this process.
A strong argument and motivation for a monetary union is that it brings a number of benefits. The most often cited benefits are the increased intra trade, price stability, increased aggregate investment, and the elimination of the exchange rate risk.