IMF Warns That Sanctions Against Russia Threaten to Weaken the Dominance of the Dollar

Gita Gopinath, the chief economist of the International Monetary Fund, speaks with AFP outside of their headquarters in Washington, D.C., on Oct. 13, 2020. Andrew Caballero-Reynolds/AFP via Getty Images

The recent financial sanctions imposed on Russia for its invasion of Ukraine are threatening to weaken the dominance of the U.S. petrodollar as the world currency, said First Deputy Managing Director Gita Gopinath of the International Monetary Fund (IMF) to The Financial Times.

The sanctions may result in a more fragmented international monetary system, warned Gopinath.