The International Monetary Fund is strengthening its ability to model extreme financial scenarios, including a rapid sell-off of US dollar-denominated assets, IMF Managing Director Kristalina Georgieva said on Monday.
Speaking at a Brussels-based Bruegel event, Georgieva described the fund’s efforts to prepare for “unthinkable events” and develop strategies to respond. “At the Fund, one muscle that we are building is our ability to hypothetically present scenarios of unthinkable events and then figure out what to do,” she said. When asked whether the scenarios include a potential run on dollar assets, she confirmed the IMF examines “all kinds of scenarios” as part of its ongoing analysis.
The warning comes amid growing investor concern over the US dollar, which has lost more than nine percent against a basket of major currencies since January 2025, and nearly twelve percent against the euro. Analysts cite US President Donald Trump’s sweeping tariffs and criticisms of the Federal Reserve’s independence and the rule of law as factors unsettling markets.
Amid the uncertainty, investors have turned to gold, pushing bullion to a record 5,100 US dollars per troy ounce on Monday.