World needs to end risky reliance on U.S. dollar - BoE's Carney [View all]
August 23, 2019
JACKSON HOLE, Wyo. (Reuters)
JACKSON HOLE, Wyo. (Reuters) - Bank of England Governor Mark Carney took aim at the U.S. dollar’s “destabilising” role in the world economy on Friday and said central banks might need to join together to create their own replacement reserve currency.
The dollar’s dominance of the global financial system increased the risks of a liquidity trap of ultra-low interest rates and weak growth, Carney told central bankers from around the world gathered in Jackson Hole in the United States.
As a consequence, it is an open question whether such a new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies,” Carney said. Such a system could dampen the “domineering influence” of the U.S. dollar on global trade.
https://www.reuters.com/article/uk-usa-fed-jacksonhole-carney/world-needs-to-end-risky-reliance-on-u-s-dollar-boes-carney-idUSKCN1VD28H
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