Carney Pushes for Global Currency Shift, Citing US Dollar's 'Problematic' Dominance

Mark Carney, former Governor of the Bank of England, discussed replacing the US dollar as the global currency in a 2019 speech at the Jackson Hole central banking symposium. The speech was titled 'The Growing Challenges for Monetary Policy in the Current International Monetary and Financial System'. In it, he argued that the dominance of the US dollar over global trade and finance is a problem that needs to be solved.

Carney proposed a multipolar global economy with a new international monetary and financial system at its center. He mentioned the renminbi as a potential candidate for reserve currency status, but noted that it has a long way to go before it's ready to assume the mantle.

One of his suggestions was the creation of a Synthetic Hegemonic Currency (SHC) - a blended basket of currencies designed to wean the world off the US dollar. According to Carney, if the share of trade invoiced in SHC were to rise, the U.S. would have less potent spillovers through exchange rates.