International Monetary Fund: Sanctions on Russia Threaten to Undermine The Dominance of The Dollar

The International Monetary Fund has warned of the repercussions of financial sanctions imposed on Russia, which threaten to gradually weaken the dominance of the dollar and lead to a more fragmented international monetary system.

The Financial Times of the United Kingdom quoted the Deputy Director-General of the Fund, Gita Gopinath, as saying in a press briefing, “The dollar will remain the main global currency even in the light of this scene, but fragmentation at a smaller level is quite possible, adding that some countries are already renegotiating the currency in which they charge for trade. “.

Gopinath noted that the war would also stimulate the adoption of digital finance from cryptocurrencies to stablecoins and central bank digital currencies, explaining that greater use of other currencies in global trade would lead to more diversification of reserve assets held by national central banks.

Western countries imposed an unprecedented package of sanctions on Russia after President Vladimir Putin announced on the 24th of February the start of a special military operation in Ukraine to protect the population in the Donbass region who have been subjected to persecution and genocide at the hands of the regime in Kiev for eight years.