There are several potential challenges and limitations of implementing a multicurrency mercantilism strategy, including:

Complexity: Managing multiple currencies can be complex and requires a high level of expertise in foreign exchange markets.

Exchange rate risk: While multicurrency mercantilism can reduce overall exposure to exchange rate risk, it also means that a country is exposed to fluctuations in multiple currencies, which can create new risks.

Lack of control: By relying on multiple currencies, a country may lose control over its monetary policy, as exchange rates for those currencies are determined by international markets.

Difficulty in setting exchange rates: Setting exchange rates between multiple currencies can be difficult and may require frequent adjustments to maintain competitiveness in international trade.

Dependence on foreign currencies: Multicurrency mercantilism can lead to a dependence on foreign currencies, which can be politically and economically undesirable.

Adoption challenges: There may be challenges in convincing domestic businesses, consumers and financial institutions to adopt and use multiple currencies in their day-to-day operations.
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