IMF drills for potential dollar rush

The IMF is preparing for extreme scenarios, including a rapid sell-off of dollar-denominated assets, as Georgieva says the Fund models “unthinkable” events. With Trump tariffs and criticisms of the Fed, confidence in the dollar has waned, gold prices surged, and BRICS nations are pursuing de-dollarisation. Georgieva suggested Europe issue more common debt to offer a safe asset alternative, though political resistance makes this difficult. The dollar’s status as the global reserve currency is not expected to change imminently due to the size and liquidity of US debt markets.