Bank of England Gov. Mark Carney took aim at the dollar's "destabilizing" role in the global economy on Friday and said central banks might need to join together to create their own replacement reserve currency.
The dollar's dominance of the global financial system increases the risks of a liquidity trap of ultra-low interest rates and weak growth, Carney told central bankers from around the world at a symposium in Jackson Hole, Wyoming.
"While the world economy is being reordered, the U.S. dollar remains as important as when Bretton Woods collapsed," Carney said, referring to the end of the dollar's peg to gold in the early 1970s.