IMF Reported on the Risk of Weakening the Dollar Due to Anti-Russian Sanctions
According to her, sanctions, including restrictions on the Central Bank of Russia, may contribute to the emergence of small currency blocks, the basis of which will be based on trade between individual groups of countries. Part of this process is the current revision of trading currencies associated with the reduction of Russia's dependence on the dollar. The wider use of other currencies in world trade will also lead to further diversification of reserve assets of national central banks.
«The dollar will remain the main global currency even in such a situation, but fragmentation is certainly quite possible at a lower level», Gopinath said. She clarified that the share of the US currency in international reserves has fallen from 70% to 60% over the past two decades due to the strengthening of the role of other currencies. In addition, the consequences of the situation in Ukraine will stimulate the introduction of digital currencies, from cryptocurrencies and stablecoins to digital currencies of central banks, which will also weaken the dollar's position.