top exporter. [ 13 ] and recent research indicates there is a significant correlation between a country ’ s trade with china and its holdings of renminbi as reserves. [ 14 ] new trade patterns may also lead to new alliances. one study finds that alliances can increase the share of a currency in the partner ’ s reserve holdings by roughly 30 percentage points. all this could create an opportunity for certain countries seeking to reduce their dependency on western payment systems and currency frameworks – be that for reasons of political preference, financial dependencies, or because of the use of financial sanctions in the past decade. anecdotal evidence, including official statements, suggests that some countries intend to increase their use of alternatives to major traditional currencies for invoicing international trade, such as the chinese renminbi or the indian rupee. [ 17 ] we are also seeing increased accumulation of gold as an alternative reserve asset, possibly driven by countries with closer geopolitical ties to china and russia. there are also attempts to create alternatives to swift. since 2014, russia has developed such a system for domestic and cross - border use, with over 50 banks across a dozen countries using it last year. and since 2015 china has established its own system to clear payments in renminbi. these developments do not point to any imminent loss of dominance for the us dollar or the euro. so far, the data do not show substantial changes in the use of international currencies. but they do suggest that international currency status should no longer be taken for granted. policy frameworks for a fragmenting world how should central banks respond to these twin challenges? we have clear examples of what not to do when faced with a sudden increase in volatility. in the 1970s, central banks faced upheaval in the geopolitical environment as opec became more assertive and energy prices that had been stable for decades ballooned. they failed to provide an anchor of monetary stability and inflation expectations de - anchored – a mistake that should never be repeated for as long as central banks are independent and have clear price stability mandates. so, if faced with persistent supply shocks, independent central banks can and will go ahead with ensuring price stability. but this can be achieved at a lower cost if other policies are cooperative and help replenish supply capacity. for example, if fiscal and structural policies focus on removing supply constraints created by the new geopolitics – such as securing resilient supply chains or diversifying energy production

jean - claude trichet : in memory of wim duisenberg speech by mr jean - claude trichet, president of the european central bank, on the occasion of the memorial service for mr wim duisenberg, amsterdam, 6 august 2005. * * * it is with great sadness and emotion that we all are here in the concertgebouw after the terrible loss of wim duisenberg, our first president and our dear friend. the french writer chateaubriand said : “ in my eyes, nobody is going down in the grave ( … ). death, in touching us, does not defeat us ; it only makes us invisible ”. wim is, and will for ever continue to be, present with us, in our heart and soul, with each and every one of us, and with our dear european central bank. he will be with us as a great central banker, a great first president of the european central bank, and a great european and friend. as regards the central banker, i would like to say very simply that, seen from my own perspective hen i was governor of the banque de france, the monetary policy of de nederlandsche bank was a role model for an institution and a currency wanting to inspire confidence, to improve credibility and to be state of the art in the handling of monetary policy in the uncharted european waters of that time. can i also say, gerrit, en passant, that the netherlands ’ economic strategy was also a role model for france ’ s economic strategy. and as a natural consequence, wim, as president of de nederlandsche bank, was a role model for fellow central bankers in europe. at the helm of the national central bank of the netherlands, as president of the committee of governors, as president of the bis, as a key member of the delors committee, as president of the european monetary institute, wim always displayed three unique qualities : • a fantastic capacity to synthesise the most complex situations ; • an exceptional gift for taking clear decisions in an expeditious way ; • and, finally, a strong determination to stick to the decision and stand firm in all circumstances, even when going through unexplored and difficult territory. each of these three qualities can be possessed independently of the others. what is absolutely exceptional in the case of wim is that he had all three of them simultaneously. as far as demanding circumstances and exceptional challenges are concerned, wim had