IMF: world will move away from Dollar dominance

The system of international relations has entered a phase of transformation: it is moving towards a multipolar world and leaving behind the total dominance of US Dollars in a financial and economic sphere – as stated by the chief economist of the International Monetary Fund (IMF), Pierre-Olivier Gourinchas, TASS reports

“We are moving along a path to a multipolar world. And this is simply reflecting an ascent of emerging markets in the global economy. So we know that, eventually, we will find ourselves in a world characterised not only by US Dollars, not only by the Dollar dominance,” Mr. Gourinchas emphasised.

In his opinion, there are currently issues of transition to a new multipolar system of international relations. “One of the available scenarios is that we will have blocks of [countries] separated from each other. They will not trade with each other on a significant scale, and will use different standards. This would be a disaster for the global economy," the economist stressed.

According to the expert, there is another scenario. In line with it, ‘controlled transition’ to a new system – which ‘protects the achievements of globalisation that have taken hundreds of millions of people out of poverty’ and has enabled ‘emerging market economies to soar’ in recent years and decades – is expected.

“Accordingly, the difficulty here will be to embark on this path of controlled transition that is leading us to this multipolar world,” Mr. Gourinchas stated.