Wednesday, November 10, 2010

Canada: No Gold in Global Currency System

Bank of Canada Governor Marc Carney says there is no role for gold in any global currency exchange system.

He flatly rejected suggestions that the world's biggest economies use gold to determine foreign-exchange rates.

"Our view is that gold has no role to play in the international monetary system,"
"It will not form in our opinion a part of an evolving international monetary system,"

Carney said global policymakers must redouble efforts to reform banking infrastructure and ensure the private sector bears the cost of future bank collapses and reiterated the extraordinary measures deployed by the industrialized Group of Seven countries to keep financial institutions afloat were necessary, even though it has created "enormous" moral hazard..

"A series of concerted measures will be required to build resilient, continuously open funding and derivatives markets and to restore market discipline to financial institutions,"  "All policymakers should redouble their efforts to reform infrastructure to achieve open, competitive markets."

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