IMF believes anti-Russian sanctions may weaken Dollar influence in global financial system
Due to the western sanctions imposed on Russia, a global influence of the Dollar may weaken – as stated by the First Deputy Managing Director of the International Monetary Fund, Gita Gopinath, in an interview with The Financial Times, RIA Novosti reports
“The Dollar would remain a global currency even in that landscape but fragmentation at a smaller level is quite possible,” Ms. Gopinath said, adding that this process has already begun.
According to Ms. Gopinath, an increase in the number of transactions using other currencies in global trade would lead to diversification of the national central banks’ reserves. Meanwhile, the Dollar weakening would be gradual; in the mid-term, this currency would enjoy a high demand.
In addition, the expert stressed that digital and cryptocurrencies are now getting stronger and, against this background, an issue of international regulation arises.
