‘Don’t kiss your dollars goodbye just yet’: IMF chief sees U.S. dollar remaining global reserve currency
Last Updated: May 24, 2023 at 4:46 p.m. ET First Published: May 24, 2023 at 8:32 a.m. ET
In remarks at an economic forum in Doha Wednesday, she argued that the U.S. dollar was likely to retain its status, Reuters reported.
“We don’t expect a rapid shift in [dollar] reserves because the reason the dollar is a reserve currency is because of the strength of the U.S. economy and the depth of its capital markets,” she said.
On a more immediately pressing matter, Georgieva played down the risk of a default by the U.S. government as the White House and congressional Republicans continue to negotiate over lifting the debt ceiling. Such showdowns are a somewhat regular occurrence in the U.S., she noted.
“History tells us that the U.S. would wrestle with this notion of default … but come the 11th hour it gets resolved and I have confidence we will see that play again,” Georgieva said.
The Treasury Department has warned the U.S. could find itself unable to pay its bills as early as June 1 — the so-called X-date — unless the debt ceiling is raised or otherwise addressed. The White House and congressional negotiators continue to talk.
William Watts is MarketWatch markets editor. In addition to managing markets coverage, he writes about stocks, bonds, currencies and commodities, including oil. He also writes about global macro issues and trading strategies. During his time at MarketWatch, Watts has served in key roles in the Frankfurt, London, New York and Washington, D.C., newsrooms.