Russia was hit with a plethora of sanctions from the United States and its allies for its invasion of Ukraine in late February. Russia called the invasion a “special operation” to disarm its neighbor.

“The dollar would remain the main global currency even in this landscape, but fragmentation at a lower level is certainly quite possible,” Gopinath told the newspaper in an interview, adding that some countries are already renegotiating the currency in which they are paid for the trade.

She said the war will also boost the adoption of digital finance, from cryptocurrencies to stablecoins and central bank digital currencies.

The IMF did not immediately respond to a request for comment from Reuters.

Gopinath told the FT that the increased use of other currencies in global trade would lead to greater diversification of reserve assets held by national central banks.

She had previously said that sanctions against Russia did not herald the demise of the dollar as a reserve currency and that war in Ukraine would slow global economic growth but not cause a global recession.