The British central bank calls for an end to the world's dependence on the dollar
09:11 - 24/08/2019
called on the British Central Bank Governor Mark Carney, Saturday, to get rid of the dependence on the dollar and unify the central bank 's efforts to find an alternative reserve currency.
Carney told a conference of central bankers in Wyoming that the dollar's dominance in the global financial system was raising the risk of what he called a "liquidity trap," a very low interest rate and weak economic growth.
“With the reorganization of the global economy, the importance of the US dollar remains as it was in the period when the Bretton Woods system collapsed” (ie, the decoupling between the dollar and the price of an ounce of gold in the 1970s).
Developing economies have increased their share of global financial activity to 60 percent, from 45 percent before the financial crisis 10 years ago, Carney said.
The dollar is still used in about half of international trade, more than 5 times the US share of global exports, making many countries vulnerable to the volatility of the US economy.
Carney added that the problems in the global economy are related to activating 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 can be achieved with the help of contemporary technology. He suggested that it is possible to use cryptocurrencies for this purpose, which will reduce the impact of the dollar on global trade. Finished 25 T.