The governor of the Bank of England made a bold remark pointing at the dollar.

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 The governor of the Bank of England made a bold remark pointing at the dollar.


Carney made this statement at the annual meeting of heads of central banks in the United States, calling on the International Monetary Fund to lead a new monetary system to protect emerging markets from catastrophic outflows of dollar capital and reduce their demand for dollar hoarding.

According to Carney, the United States accounts for only 10% of Global trade and 15% of global GDP, but the dollar still accounts for half of Global trade settlement and two-thirds of global securities issuance. So even as the global economy is readjusting, the dollar remains as important as it was when the Bretton Woods system collapsed in 1971. He said that the dominance of the dollar in the global financial system increased the risk of liquidity traps and exposed many countries to the destructive spillover effects of U.S. economic fluctuations. In the long run, he said, the IMF could change the rules of the game by building a multipolar system. Carney, who has served as governor of the Bank of Canada and the Bank of England over the past decade, is considered to have a great influence among policymakers in various countries, and his comments are also seen as an attempt to shock the next president of the IMF. Carney was considered one of the candidates for the next IMF president, but failed to win support from European governments. Source: Global Times Responsible Editor: Wang Ning_NB12468

According to Carney, the United States accounts for only 10% of Global trade and 15% of global GDP, but the dollar still accounts for half of Global trade settlement and two-thirds of global securities issuance. So even as the global economy is readjusting, the dollar remains as important as it was when the Bretton Woods system collapsed in 1971.

He said that the dominance of the dollar in the global financial system increased the risk of liquidity traps and exposed many countries to the destructive spillover effects of U.S. economic fluctuations.

In the long run, he said, the IMF could change the rules of the game by building a multipolar system.

Carney, who has served as governor of the Bank of Canada and the Bank of England over the past decade, is considered to have a great influence among policymakers in various countries, and his comments are also seen as an attempt to shock the next president of the IMF. Carney was considered one of the candidates for the next IMF president, but failed to win support from European governments.