The IMF has noted a decrease in some countries’ dependence on the dollar

Gita Gopinath, first deputy managing director of the International Monetary Fund, said that “despite heightened geopolitical risks, the US dollar continues to dominate.”

Several countries are working to reduce their reliance on the US dollar due to disruptions caused by the COVID-19 pandemic and the conflict in Ukraine, as well as national security concerns, the first deputy managing director of the International Monetary Fund (IMF) said. , Gita Gopinath, according to the Truth.

“Some countries are reconsidering their heavy reliance on the US dollar for international transactions and reserves,” she said, speaking at Stanford University in California. Gopinath added that after several “years of turmoil” including the COVID-19 pandemic and the conflict in Ukraine, states are “reviewing their trade partnerships based on economic and national security considerations.”

At the same time, as the first deputy managing director of the IMF pointed out, “despite the increased geopolitical risks, the US dollar still dominates.” “Conformable [sistemului de plăți] SWIFT, [dolarul] it accounts for about 80% of business transactions[…] It also accounts for nearly 60% of foreign exchange reserves despite the gradual diversification of foreign exchange reserves from the dollar to traditional non-reserve currencies such as the Australian dollar and the Canadian dollar,” Gopinath added.

Among countries focused on the US, the “monetary structure of trade finance” did not change much in 2022-2023, she noted. But among China-oriented countries, the changes are “more visible.” “In the Chinese bloc, the share of the US dollar in trade finance payments has declined since early 2022. At the same time, the share of the renminbi (RMB, the official name of China’s national currency) has doubled, from about four to eight percent,” Gopinath said.