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How would a country convert to a different currency?

Could a country like lets say Kenya convert to the Euro. If so then how If not then why and will it make its GDP increase

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2 Responses to “How would a country convert to a different currency?”

  1. Sure. Ecuador converted to the US dollar. The reason that you might find this attractive is that it prevents governments (other the US or EU, of course) from devaluing the currency.

  2. Bored Goblin Says:
    May 14th, 2010 at 6:58 am

    a country can allow circulation of foreign currency, or peg its own currency to dollar or euro.
    This can restore a bit of economic stability if a country had high inflation before.
    This prevents government from using monetary policy, as supply of money is controlled by the US Fed or the European central bank.

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