BoC Governor Macklem says imbalances are growing as China's outward flow of capital continues and the US has been the largest destination of capital

Global Imbalances & Financial Stability

• Global imbalances are growing and may also be fuelling financial stability risks.
• While imbalances adjust slowly, attractiveness of the US dollar may have let imbalances persist longer.
• Leveraged trading strategies of hedge funds and non-bank financial intermediaries may be making this market more fragile.

Trade & Capital Flows

• If we want a more balanced and resilient global system, we need to create more places for savings to go beyond just the US
• Even as the U.S. has pulled back from open trade, others should look to deepen trade and investment relationships.