The IMF says it is stress-testing scenarios that include a run on dollar assets as investor unease over US policy deepens, even as it acknowledges the greenback’s dominance is unlikely to vanish suddenly.
Summary:
IMF is modelling scenarios including a rapid sell-off of US dollar assets
Comments reflect rising unease over tariffs, Fed independence, and rule-of-law risks
US dollar has fallen sharply since Trump’s return; gold hit record highs
Long-term reserve diversification and BRICS de-dollarisation cited
IMF says dollar dominance unlikely to end abruptly due to US market depth
The International Monetary Fund is preparing for scenarios that include a rapid sell-off in US dollar-denominated assets, Managing Director Kristalina Georgieva said on Monday, underscoring growing unease about the dollar’s role in the global financial system.
Source is this, here:
I read this and shrugged it off as interesting background information. Wrong. Just an hour or so ago we had the US President trash talk the dollar:
The dollar got smashed (further). See pic, above.
More from that article, in summary:
Speaking at an event hosted by Bruegel, Georgieva said the Fund is strengthening its capacity to model “unthinkable” events, including the possibility of a run on dollar assets, as part of its ongoing risk analysis. While stopping short of predicting such an outcome, she confirmed the IMF is examining a broad range of stress scenarios.
Her remarks come amid mounting investor concern triggered by President Donald Trump’s sweeping tariffs, repeated attacks on Federal Reserve independence, and broader rule-of-law worries. Since Trump’s return to the White House in January 2025, the US dollar has fallen more than 9% against a basket of major currencies and nearly 12% versus the euro.
Safe-haven doubts have driven strong inflows into gold, with prices hitting a record $5,100 per ounce. Georgieva noted that longer-term diversification trends are also at work, with the dollar’s share of global FX reserves declining from 72% in 2001 to just under 57% today, while the BRICS bloc has actively pursued de-dollarisation.
She argued that greater issuance of joint EU debt could help create an alternative safe asset, though acknowledged strong political resistance. Despite current pressures, Georgieva stressed the dollar’s reserve status remains underpinned by the depth and liquidity of US capital markets.
