General Director of . saidInternational Monetary Fund Kristalina GeorgievaIn an interview with Al Arabiya, the world of digital currencies begins to expand and we may see some transformations.
Georgieva added, in an interview with “Al Arabiya”, that “people trust the currency when this currency is backed by strong institutions and assets.”
And she continued, “This is still the case when we talk regarding the dollar,” stressing that one should not rush to say goodbye to the US dollar as a global reserve currency.
“All of this is premature because the dollar is preferred as a reserve currency for the robustness of the Federal Reserve, the Treasury, and the depth of capital markets… Of course as the world develops, there are other opportunities to build reserves,” the fund manager said.
With regard to digital transformation, she emphasized that this would not alienate the dollar because the United States had begun to consider issuing a digital dollar.
And she indicated that the past decade witnessed a decrease in the dollar’s share as a reserve currency from 70% to 60%, i.e. a 10% decline, explaining that the Australian dollar, the Swedish krona and the Swiss franc accounted for only 25% of this lost percentage to the dollar, and the renminbi also acquired a share because the common advantage These currencies are backed by strong and transparent institutions.
