Dollar dominance unlikely to change in near future: Geeta Gopinath

Gita Gopinath, former IMF Chief Economist and Deputy Managing Director, now back again at Harvard as a Professor, believes dollar dominance is unlikely to change in the near future, citing the strength of American institutions and its financial markets as critical factors.

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During her tenure at the IMF, among the few topics that regularly came up in her research work was dollar dominance.

Asked in a recent episode of IMF Podcasts as to why she was so interested in those aspects of the economy, referring to dollar dominance, she said it is the asymmetry and power in the world that prompted her to work on those areas.

"...the world is highly asymmetric," she said, referring to the dominance of the dollar.

The importance of any currency in the world depends upon how much one trades with the world, she said during the podcast Bruce Edward, whose transcripts were made available online.

Reality is, however, so far from that, she continued.