Bank of England's Mark Carney suggests replacing the USD as the global currency benchmark
- 2 months ago
Bank of England’s governor, Mark Carney, hinted to a replacement of the U.S. dollar as the main global monetary system, claiming that it “won’t hold.”
In an annual meeting of U.S. central banks, includng the Fed chief Jerome Powell, Carney laid out his vision as he called on the IMF to create a new system of currencies, protecting emerging economies from cash outflows and having less reliance on holding to U.S. dollar currencies.
Looking ahead, Carney suggested the creation of a global electronic currency, “synthetic hegemonic currency . . . provided . . . perhaps through a network of central bank digital currencies.”
In his view this will protect the rest of the global economy should the U.S. suffer any market setbacks.
“The deficiencies of the international monetary and financial system have become increasingly potent.”
“Even a passing acquaintance with monetary history suggests that this centre won’t hold.”
Some may seem as very ambitious plans, however Carney may see this as an opportunity to land the top spot at the IMF, as his reign as governor of the Bank of England is due to an end in January 2020.
That being said, he currently has little support from the U.S. and Europe to land the top job.
Source: Smart Trend Team