US exit from IMF may hinder dollar's status as global reserve currency

The dollar is currently facing its steepest decline since 1989, falling 8.4% against a basket of six other currencies in 2025, largely due to Trump’s economic policies. The most pressing threat to the greenback’s stability is a potential US exit from the International Monetary Fund (IMF). 

Former US Deputy Treasury Secretary Ted Truman warns that such a move would significantly undermine the dollar's role in the global financial system. As member countries reconsider their reserve allocations, the euro and yuan are expected to gain ground.

This shift could put further pressure on the greenback, potentially leading to a significant depreciation. While a weaker dollar may improve the competitiveness of American goods, it could also trigger serious financial instability for the US.

Earlier, President Trump, who has initiated a review of how the country engages with international organizations, hinted at an exit from the IMF. The findings of the US administration are set to be released in July, which may contribute to ongoing volatility in the stock market.