Federal Reserve Bank of New York President William Dudley said Tuesday he would welcome more currencies achieving reserve status, noting the more countries that meet the requirements, the more insulated the financial system could be from destabilizing capital flights.

“Will more reserve currencies strengthen the international monetary system? My answer can be summed up in one word: yes,” said Mr. Dudley in remarks prepared for the High-Level Conference on the International Monetary System in Zurich.

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