International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated on Wednesday that she is confident the "United States will avoid defaulting on its debts." Speaking at the Qatar Economic Forum organized by Bloomberg, Georgieva remarked, "History tells us that the United States will wrestle with the idea of defaulting, but it finds a solution at the last moment, and I have confidence we will see that again."
Georgieva noted that "it is likely the dollar will remain the global reserve currency despite the increasing discussions on countries moving to reduce their dependence on it." She said, "We do not expect a rapid shift in reserves because the reason for using the dollar as a reserve currency is the strength of the U.S. economy and the stability of its capital markets. The time to say goodbye to the dollar has not yet arrived."
Georgieva mentioned on Twitter that "Qatar has pledged to direct 20% of its Special Drawing Rights (SDR) to the IMF's financial support mechanisms, which include both the Growth and Poverty Reduction Trust Fund and the Resilience Support Trust Fund. Special Drawing Rights are an international reserve asset created by the IMF to supplement other reserve assets of member countries. The IMF's website indicates that Qatar's SDR units amount to 985 million."
Georgieva added in a video posted by the Qatar News Agency that "the pledge made today will allow the IMF to expand concessional lending to low-income countries and increase lending to countries vulnerable to climate shocks."
