The concept of unified currency is no more new to the world economy. After the Euro, the South Asian countries are looking forward to realize the desired benefits. But as every coin has two sides, we need to analyze the other side impartially.

Rupa is the proposed name of the common currency of SAARC nations. Rupa was selected because most of the South Asian countries are using a currency called the "rupee". Sri Lanka, Nepal, Bhutan, Pakistan, and India have a currency called the rupee. Maldives' currency is the Rufiyaa. Only Bangladesh has the Taka. So, the name Rupa seems to be a logical choice. But the question is how viable is the idea of a unified currency in South Asian countries? SAARC countries do not share very good relations between them. But, experts feel that a common currency will go a long way in removing mistrust and forging ties. The single currency will contribute significantly to further market integration. It will increase market transparency by making prices more easily comparable.

Another important question is what would be the value of Rupa against the US dollar? Experts feel that the value should be closer to the value of the Indian rupee against the US dollar. The central banks of SAARC countries need to integrate all their operations relating to the issue of currency, foreign exchange, and interest rates. The other areas like supervising the financial markets and day-to-day operations can be kept separate. The currency should be designed keeping in mind the receptivity of the joining countries. It can have a symbol, which appeals to all participating countries without creating any differences.

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