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On IMF Podcast, Gita Gopinath Says Dollar’s Global Dominance Unlikely to Change Soon

She points to the strength of U.S. institutions as the anchor of the currency’s role.

Overview

  • Former IMF chief economist, now a Harvard professor, said, “As of now, I don’t see major changes,” when asked about shifts in dollar primacy.
  • She cited deep, liquid U.S. financial markets, strong institutions, and the rule of law as the core supports for the greenback’s status.
  • Gopinath underscored that the dollar’s reach spans trade, finance, payments, and reserves, influencing how economies handle shocks and which policies are effective.
  • Her remarks counter recurring worries centered on U.S. debt burdens and tariffs by emphasizing structural market and institutional strengths.
  • Coverage noted that a stronger dollar raises import costs for consumers in emerging markets such as India, adding to inflation pressures.