IMF Economist Discusses Dollar Demand Reassessment

IMF chief economist, Pierre-Olivier Gourinchas, addressed the weakening dollar and shifting demand for dollar-based assets at the IMF and World Bank Spring Meetings. Despite recent trends, he reassured that markets are adjusting without signs of stress, indicating normalcy in the currency markets.

International Monetary Fund chief economist, Pierre-Olivier Gourinchas, commented Tuesday on the weakening of the dollar and a shift in demand for dollar-based assets, signaling a market reassessment.

During the IMF and World Bank Spring Meetings, Gourinchas stated that substantial inflows into dollar assets had occurred in recent years, making recent adjustments normal.

"Markets are managing the adjustments well, and there are no indications of stress, even within currency markets," Gourinchas assured.

(With inputs from agencies.)