Borio: Pluralism may not be answer to weakness in international system
Claudio Borio sees the “main problem” as the lack of an effective anchor in the system
Claudio Borio, head of the Bank for International Settlements' monetary and economic department, questioned whether greater pluralism in the international monetary and financial system would make it stronger, speaking at the SNB-IMF conference in Zurich today (May 10).
Borio highlighted the heavy use of the US dollar in foreign exchange transactions and reserves, and the "gravitational force" it exerts on the other currencies. The dominance of any one currency poses "challenges", he said.
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