IMF: Russia sanctions can weaken the dollar — FT

IMF’s First Deputy Managing Director Gita Gopinath says that sanctions imposed on Russia threaten to chip away at dollar dominance. She told Financial Times that this cam lead to a more fragmented monetary system.

“The dollar would remain the major global currency even in that landscape but fragmentation at a smaller level is certainly quite possible”, Gopinath said in an interview to the newspaper.

She points out that some countries are already changing the currency in which they get paid for trade.

Gopinath told the newspaper in an interview, adding that some countries are already renegotiating the currency in which they get paid for trade. She said that it rises the question of adoption of digital finance, from cryptocurrencies to stablecoins and central bank digital currencies.