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IMF's Gourinchas: Dollar Still 'Firmly' Anchors Global Finance
IMF chief economist Pierre-Olivier Gourinchas says the dollar remains the anchor of global finance, pushing back on de-dollarization talk even as tariffs reshape trade. The next test: the IMF's October World Economic Outlook.
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Pierre-Olivier Gourinchas, the International Monetary Fund's chief economist, pushed back Friday on talk that the dollar's role is fading. The global financial system remains deeply anchored by the U.S. currency, he said at an IMF conference, even after President Donald Trump's unilateral tariffs reshaped trade relationships.
Gourinchas pointed to three areas where the dollar dominates. International trade is mostly invoiced in dollars. Cross-border banking relies on the currency. Central banks hold the bulk of their reserves in dollars. He described the setup as "firmly dollar-centered" and said no rival had yet built the liquidity or legal framework to challenge it.
The remarks come after years of speculation that sanctions and tariff policy would push countries like China and Russia to accelerate alternatives. The data so far does not support that story. The dollar's share of global reserves has slipped marginally since 2015. It still stands above 57%, according to IMF data. The yuan has gained only about two percentage points over that stretch.
Gourinchas did not name specific rivals. His message matters for currency markets because it takes the most aggressive de-dollarization narrative off the table. If the dollar retains its structural dominance, medium-term moves will be driven by rate differentials and growth differentials, not by reserve composition shifts.