{"id":20553,"date":"2023-05-04T09:42:44","date_gmt":"2023-05-04T09:42:44","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/imf-chief-warns-of-more-weaknesses-in-us-banking-sector-sees-gradual-shift-away-from-us-dollar-economics-bitcoin-news\/"},"modified":"2023-05-04T09:42:44","modified_gmt":"2023-05-04T09:42:44","slug":"imf-chief-warns-of-more-weaknesses-in-us-banking-sector-sees-gradual-shift-away-from-us-dollar-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/imf-chief-warns-of-more-weaknesses-in-us-banking-sector-sees-gradual-shift-away-from-us-dollar-economics-bitcoin-news\/","title":{"rendered":"IMF Chief Warns of More Weaknesses in US Banking Sector \u2014 Sees ‘Gradual’ Shift Away From US Dollar \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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International Monetary Fund (IMF) Managing Director Kristalina Georgieva expects \u201cmore vulnerabilities\u201d in the U.S. banking sector amid a growing de-dollarization trend worldwide. \u201cThere has been a gradual shift away from the dollar,\u201d the IMF chief acknowledged.<\/strong><\/p>\n

U.S. Banking Crisis Continues<\/h2>\n

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, talked about the U.S. banking crisis and a growing de-dollarization trend Monday at the 2023 Milken Institute Global Conference in Beverly Hills, California.<\/p>\n

The IMF chief warned of more vulnerabilities in the U.S. banking sector, noting that the Federal Reserve\u2019s rapid interest rate hikes have exposed weaknesses at some banks and that the pain may not be over. She said:<\/p>\n

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It doesn\u2019t mean that we have a free pass. It doesn\u2019t mean that there wouldn\u2019t be more vulnerabilities to come.<\/p>\n<\/blockquote>\n

Several major banks in the U.S. have failed in recent months, with the latest being First Republic Bank. On Monday, regulators seized<\/a> the bank and sold virtually all of its assets to JPMorgan Chase. This was the largest U.S. bank failure since the 2008 financial crisis.<\/p>\n

Georgieva praised U.S. regulators for their swift action in dealing with the collapse of First Republic Bank, emphasizing that she expects to see \u201cnew regulatory and disclosure thinking around how we deal with this.\u201d<\/p>\n

Georgieva Sees Gradual De-Dollarization Trend<\/h2>\n

The IMF managing director also talked about a growing de-dollarization trend globally. While Georgieva does not see any viable alternative among global currencies to replace the U.S. dollar as the world\u2019s reserve currency in the near future, she acknowledged:<\/p>\n

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There has been a gradual shift away from the dollar, it was 70% of reserves, now it is slightly under 60%.<\/p>\n<\/blockquote>\n

She believes the euro is the biggest competitor to the U.S. dollar while the British pound, the Japanese yen, and the Chinese yuan \u201cplay a very modest role.\u201d<\/p>\n

The BRICS nations (Brazil, Russia, India, China, and South Africa) are among the most notable advocates of de-dollarization. In addition to promoting the use of national currencies<\/a>, the economic bloc is working to create a new currency<\/a> that will help its member countries reduce their reliance on the USD. A Russian official recently stated that he expects an agreement<\/a> on a BRICS currency to be reached this year.<\/p>\n

What do you think about the statements by IMF Managing Director Kristalina Georgieva? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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