Russia has condemned the United States and its allies of attempting to orchestrate a false default, despite the fact that the nation has the funds to pay its bills. This might ultimately lead to many countries cutting dollar holdings after Russian reserves were frozen, according to the IMF.
The deputy chief of the International Monetary Fund, Gita Gopinath, said on Tuesday that worldwide economies would reconsider how safe it is to depend on the US dollar in their foreign currency reserves.
The declaration comes after foreign financial institutions essentially seized half of Russia's forex reserves as a result of sanctions imposed on Moscow after the start of its military operation in Ukraine.
“We are likely to see some countries reconsidering how much they hold of certain currencies in their reserves,” she stated in an interview with Foreign Policy magazine.
According to Gopinath, one of the repercussions of current affairs is "increasing fragmentation" in global fina...
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