“Global imbalances are growing and may also be fuelling financial stability risks”: BoC's Macklem
By Agustin Wazne
Updated: 23 Jun 2026
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Bank of Canada (BoC) Governor Tiff Macklem said on Tuesday that global imbalances are increasing and may risk financial stability.
Bank of Canada (BoC) Governor Tiff Macklem said on Tuesday that global imbalances are increasing and may risk financial stability. Speaking to a business audience in Paris., Macklem noted that China’s outward flow of capital continues with the United States remaining the biggest destination for those flows.
Key takeaways:
Imbalances are growing as China’s outward flow of capital continues, and the United States has been the biggest destination of capital.
Global imbalances are growing and may also be fuelling financial stability risks.
While imbalances adjust slowly, attractiveness of US Dollar may have let imbalances persist longer.
Leveraged trading strategies of hedge funds and non-bank financial intermediaries may be making this core market more fragile.
Even as the US has pulled back from open trade, others should look to deepen trade and investment relationships.
If we want a more balanced and resilient global system, we need to create more places for savings to go beyond just the US.”
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