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.