Bank of England Governor: Dollar “Too Dominant” as Reserve Currency, Needs to Be Replaced

Mark Joseph Carney is an Anglo-Canadian economist who currently holds the position of Governor of the Bank of England and president of the G20 Financial Stability Council. Carney was previously the Governor of the Bank of Canada and began his career at Goldman Sachs to join the Canadian Ministry of Finance.

Now, Governor of the Bank of England has indicated that the dollar is “too dominant” as a reserve currency, therefore it needs to be replaced. In fact, Carney proposed to supplant the dollar with a digital currency. I also affirm that the digital currency “could dampen the domineering influence of the US dollar on global trade”.

Meanwhile, Peter Schiff said during a recent interview in RT America that investors should stay away from the dollar, not only because of the recession ahead but because their days as a reserve currency could be counted.

The influence that could decrease

There is a question regarding the issue and it is not certain if it is just hyperbole, or could the US dollar really fall off its throne. What is certain is that the enemies of the United States would certainly like to see it happen. And increasingly, so would his friends.

In this way, it is understood that the influence of the dollar on global financial conditions could diminish in a similar way if a financial architecture were developed around the new digital currency and displaced the dominance of the dollar in the credit markets. By reducing the influence of the United States in the global financial cycle, this would help reduce the volatility of capital flows to emerging market economies.

Carney joins a growing chorus of people and nations frustrated with the “dominant influence” of the US dollar. This frustration has been exacerbated by US foreign policy that arms the dollar and uses it to intimidate other countries.

Because the United States controls the world reserve currency, it has a great influence on other countries. The SWIFT payment system provides a platform from which the United States can exercise power and promote its foreign policy objectives.

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Source: SchiffGold