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Posted on 01/26/2026 9:57:23 PM PST by delta7
The International Monetary Fund is preparing for the possibility of a rapid sell-off of U.S. dollar-denominated assets, its managing director, Kristalina Georgieva, said today.
"At the fund, one muscle that we are building is our ability to hypothetically present scenarios of unthinkable events and then figure out what to do," Georgieva said at an event hosted by Bruegel, a Brussels-based think-tank.
Asked whether the scenarios include a potential run on dollar assets, Georgieva said the fund runs "all kinds of scenarios" and that it was examining the issue as part of its ongoing analysis.
Her comments come as Donald Trump's sweeping tariffs and attacks on the Federal Reserve's independence and the rule of law have sparked deep investor unease about the status of the dollar, which has dominated global finance since the end of the Second World War.
The greenback's value has fallen more than 9% against a basket of other currencies since Trump's return to the White House in January 2025. The dollar's decline against the euro has been even steeper, at just under 12%.
Fears about the greenback's continued status as a "safe haven" have also caused investors to pile into gold, with the price of bullion reaching a record high of $5,100 per troy ounce today....
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Does a weakened dollar, overall when all trade counted, help reduce the impact of the deficit on paper? It is definitely dangling other economies around the world. Reducing their export power, tourist draw, and quality of life. So should be good for us overall once all is added up?
Skanks sounds like a Russki.
“Though the dollar is down in 2025, the dollar’s value rose by 4.2% from November to January. When rates are high and the dollar is strong, global central banks often sell Treasuries. That limits the depreciation of their local currency while avoiding the higher costs of hedging their currency against the dollar.”
But don’t let FACTS get in the way of your PM investment strategy!
A weak dollar costs citizens much more when buying foreign goods and services.
>> A weak dollar costs citizens much more when buying foreign goods and services.
That blanket statement oversimplifies.
A weak dollar makes American exports more attractive.
MAGA!!!
The less the world holds on to the dollar, the less consequences if the US went bankrupt. You can always rebuild from the bottom like Iceland did. But it might take a few years to work the bad dollars.
Cute how the author just tosses in the slander that Trump is attacking the rule of law like it’s just some factual news reporting and his article is nice and neutral. Not surprised to see he has a German name, as this style of propagandizing is so extremely typical of German media.
Walzing Timalda is attacking the Rule of Law, not VSGPDJT.
“A weak dollar costs citizens much more when buying foreign goods and services.”
Both Trump and Scott Bessent said before Trump took office again that lowering the value of the dollar was one of their goals, so that our exports would be more affordable abroad, while foreign imports would be more expensive, prompting Americans to choose American-made goods more often. It’s a deliberate part of their re-industrialization plan.
American investors - who mostly deal in US Dollars - will be buying ALL those assets, at a sharp discount to full value.
Thanks, Europe and Asia!
The U.S. Dollar has already rallied off its current $96 market price THREE times since July 2025.
(IMF)
The Impossible Mission Force?
That explains why I just saw Tom Cruise
But I disavow any knowledge of his actions
If there were any American made goods…..
A weak dollar makes American exports more attractive.
- - - - - - -
Zimbawe’s exports must be really attractive.
“If there were any American made goods…”
You mean the two trillion plus dollars of USA goods exported in 2024?
A friend in Venezuela told me they are now using US Dollars in the country.
Risk management scenarios for international banks is a component of the Basel accords. I spent way too many afternoons in meetings addressing what we would do in the most dire scenarios.
Once I told the Risk Management Senior VP that if the disaster he was described actually occurred would simply send my staff home to die. He did not think it was funny.
My point is that they would talk about this planning in our annual report. It did not mean we thought this stuff was happening. We just planned for disasters.
Whenever I see articles about the collapse of the dollar the pressing question is “what’s gonna replace it?” The Yuan? The Ruble? The Euro? Each of those is laughable.
Hold onto your dinars.
Each of those is laughable.
The first country to anchor their currency to Gold will become the major player.
We shall see, shortly.
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