Governor of the Bank of England: we must put an end to the global dependence on the dollar

Mark Carney, Governor of the Bank of England, Bank of England, called for the elimination of dependence on the dollar and the unification of banks' efforts to find another reserve currency.

Carney said Friday at a central bankers conference in Wyoming that the dollar's dominance in the global financial system was increasing the risk of what he called a "liquidity trap" – a rate of 39 percent. very low interest and low economic growth.

"With the reorganization of the global economy, the US dollar is no longer as important as during the time when the Bretton Woods system collapsed" (ie The disengagement of the dollar from the price of an ounce of gold in the 1970s).

Developing countries increased their share of global financial activity from 60% to 45% before last year's financial crisis, Carney said.

The dollar is still used in about half of international trade, more than five times the US share of world exports, which affects many countries to fluctuations in the US economy.

Carney added that the problems of the global economy are related to the activation of protectionist and populist policies.

The Governor of the Bank of England argued that the best solution would be to create a diversified multipolar financial system, which could be achieved with the help of contemporary technology. He suggested that it was possible to use cryptocurrencies for this purpose, which would reduce the impact of the dollar on world trade.

Source: Reuters

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