IMF Director: No Immediate Threat to US Dollar’s Dominant Global Role

International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated on Monday that the U.S. dollar is poised to retain its dominant position in the global financial system, dismissing concerns over its recent fluctuations.

In an interview with Bloomberg, Georgieva emphasized that while the dollar has seen a decline in value over the past year—reportedly falling by over 9% since early 2025—the shift does not signal a change in its fundamental role. "We should not be carried away by short-term changes in the exchange rate," Georgieva remarked. "I do not see a change in the role of the dollar anytime soon."

Structural Strengths vs. Short-term Volatility The IMF chief pointed to the "depth and liquidity" of U.S. capital markets and the overall size of the American economy as the primary reasons for the greenback's enduring status as the world’s reserve currency. She noted that despite global trends toward diversification and efforts by some blocs to "de-dollarize," the institutional strength and entrepreneurial spirit of the U.S. market remain unparalleled.

Global Context and Emerging Markets Georgieva’s comments come amid a period of high international uncertainty, marked by shifts in trade policies and geopolitical tensions. While acknowledging that the dollar's share of global foreign exchange reserves has dropped from 72% in 2001 to approximately 57% today, she maintained that there is currently no viable alternative capable of matching the dollar's scale and safety.

The IMF continues to monitor "unthinkable scenarios," including potential rapid sell-offs of dollar assets, as part of its routine risk analysis. However, the Fund's current outlook remains rooted in the belief that the dollar’s supremacy is stable for the foreseeable future.