MNI BRIEF: Premature To Question USD Reserve Status, BOC Says

Bank of Canada Governor Tiff Macklem said Thursday that even with some recent market rumblings there's little evidence the U.S. dollar is losing its global reserve currency status.

“The performance of the U.S. dollar in moments of volatility is one part of its role as the global reserve currency. But there are many other dimensions, many other reasons why the U.S. dollar is the global reserve currency,” Macklem told reporters. (See: MNI INTERVIEW:Tariffs Freeze Fed, Court Global Recession-Fatas)

“What you’re hearing when you talk to global investors was ok well, even if the U.S. dollar is performing a little differently, if I’m not in U.S. dollars I gotta be in something else and that could perform even more differently," he said. "So, we’ve seen a lot of money come into the United States in the last number of years, and we may see some diversification out of the U.S. dollar. I don’t think that would be too surprising, but that’s very different from the U.S. dollar losing its status as global reserve currency, and I think it’s way too early to speculate on that.”