The dollar is being gradually abandoned now; it used to account for about 70% of the global forex reserves, but now is slightly below 60%, she stated.
Still, Georgieva does not see an alternative to it any time soon, adding that “de-dollarization is not on top of my worry list.”
Referring to the banking crisis, the IMF chief argued that the rapid acceleration in interest rates “exposed vulnerabilities in the financial sector,” noting that the banking industry needs to be on watch for additional risks.
Georgieva further pointed to the need for a better debt restructuring mechanism as over 70 emerging markets face a collective $326 billion debt burden, with more than half of them already in or near debt distress, including Zambia, Ethiopia and Ghana.
