IMF chief sees no threat to dollar due to exchange rate fluctuations

Kristalina Georgieva urged not to exaggerate the significance of the dollar's decline over the past year and emphasized that the American currency will retain its leading role in the global financial system. About this reports Bloomberg.

The IMF managing director made the comments on Monday at an emerging markets conference in Al Ula, Saudi Arabia.

Her statements came against the backdrop of a noticeable weakening of the US currency: the Bloomberg Dollar Index fell by 8.1% last year – the worst performance since 2017. In 2026, the decline continued, reaching another 1.3%.

"We shouldn’t get carried away by short-term exchange rate fluctuations. I don’t see any change in the role of the dollar in the near future," Georgieva emphasized in an interview with Bloomberg Television.

The dollar's fall is caused by several factors: the administration's tariff policy Trump, the deterioration of the US government's fiscal discipline and the growing caution of international investors.

Chinese regulators have advised financial institutions to reduce their holdings of US Treasury bonds due to concentration risks and market volatility.

Georgieva noted that a weaker dollar could even be beneficial for emerging market countries, as it reduces the cost of servicing their external dollar-denominated debts.

"Those who borrow in US dollars will now pay less," she explained.

• January 19 International Monetary Fund improved growth forecast global economy for 2026 to 3.3% – 0.2 percentage points more than expected in October.