Currency unions can help reduce the chances of a currency crisis happening. A study looked at data from 192 countries between 1970 and 1999, including 195 currency crisis events. The results show that being part of a currency union lowers the risk of a currency crash. This was found to be true across different definitions of currency crises, exchange rates, time periods, and regions. Case studies of countries joining or leaving currency unions also supported this conclusion. This suggests that forming currency unions could be beneficial for stability in the financial system.