By Karuna Thapa
Kathmandu, April 1
Sanctions against Russia, according to Gita Gopinath, the IMF’s first deputy managing director, will weaken the dollar’s worldwide dominance. In an interview with the Financial Times, Gopinath said, ”Even in this event, the dollar will remain the leading global currency, and its influence would be limited.”
She further said that some countries were already talking about what currency they would use to pay for trade. Russia and India have been working on a rupee and ruble system, which they claim will allow national currencies to be used in trade instead of the dollar.
According to Gopinath, the West’s restrictions on small-scale currencies have been tightened as a result of Russia’s military campaign in Ukraine. ”We can diversify our currency reserves by using currencies other than the dollar and the euro in global commerce,” she added.
