One such mechanism is the Development Fund to provide financial assistance to these disadvantaged countries. Benefits of a monetary union Economic theory cites several potential advantages to be derived from monetary union: •  First, a monetary union promotes intra-regional trade because it reduces transactions costs and eliminates exchange rate uncertainties.
The relative value of this benefit depends on the share of intra-regional trade in total trade. •  Second, monetary union is expected to facilitate the process of price stability by strengthening macro-economic management through budgetary discipline and the elimination of deficit financing.