ECB’s Panetta Sees Move Away From Dollar as Key Global Currency

The international monetary system will likely move away from the dollar to a constellation of several coexisting global currencies, according to European Central Bank Governing Council member Fabio Panetta.

While the greenback will remain a key currency, the world “may gradually drift towards a more multi-polar configuration,” Panetta said in a speech in Dublin on Tuesday. “That shift could bring greater diversification, or amplify volatility and contagion risk if coordination falters.”

Panetta, who also heads the Bank of Italy, said good governance is the key to managing such risks. He said the pillars of monetary stability remain the authority ...