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Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

The writer is a research colleague at the Moussavar Rahani Business and Government Center at Harvard Kennedy School and a former assistant secretary for international affairs in the US Treasury Department

Donald Trump has already withdrew the United States from the Climate Agreement in Paris and the World Health Organization. Is the next International Monetary Fund?

Project 2025, Statement of the controversial and radical policy of Trump’s second term issued by the Heritage Heritage Foundation, calls on the United States to withdraw from the fund. The authors claim that the International Monetary Fund adopts the theories and economic policies that are unreasonable for the free market and the United States of America.

The withdrawal from the box will be an important goal. If so, the United States will lose all the impact on the policies and operations of the International Monetary Fund. More importantly, the withdrawal will significantly reduce the international role of the US dollar.

The largest part of the International Monetary Fund operations are performed in dollars; Most borrowers in the International Monetary Fund are ordering dollars and make a payment of dollars. If the dollars do not come from adhering to the United States to the fund, then other members offer them their own reserves.

International demand for funds has decreased by 5.6 percent over the past four years. This trend will accelerate if the United States will withdraw from the box. After that, the dollar will be excluded from use by the fund, and what is the nation that wants to bear assets in a currency that cannot be used in the transactions of the International Monetary Fund issued by a country that abandoned its international financial responsibilities?

Although the International Monetary Fund works today mostly in dollars, it contains a multi -process structure. Sources of other major currencies such as China and the European Union will be happy to inherit these special status of the dollar.

Consider, for example, special drawing rights in the International Monetary Fund, which are international reserves that gain the reserves of member countries. The dollar now has the largest weight (43 percent) in a basket of five currencies estimated at SDR. The next largest weight is the euro, followed by those in China, Japan and the United Kingdom. If the United States withdraws from the International Monetary Fund, the dollar must be removed from the SDR rating, because it can only include members ’currencies.

If the United States abandoned the leadership of the International Monetary Fund, then China will be in its position to challenge Europeans for the largest basket weight. They are likely to move simultaneously to obtain an impartial part of the current American share of the International Monetary Fund voting and transfer the fund’s headquarters to China.

The United States will not only raise the international status by withdrawing from the International Monetary Fund, but will also lose a channel to provide financial assistance to the countries you want to support. Whatever the critics think about the faults visited in the policies promoted by the International Monetary Fund, the United States no longer has any influence.

The withdrawal from the International Monetary Fund would spell the end of America as a major reserve provider for the rest of the world, a situation by the President of the Economic Advisers in Trump, Stephen Miran, he wants to maintain it until he wants to pay other countries in exchange for the right to use the dollar in this way.

More importantly, as Chinese currencies, the European Union and the smaller countries replaced the dollar in official international financing, will be replaced in private international financing as well. As a result, the distinguished role of American financial institutions, with direct and indirect preferential access to the dollar’s support from the Federal Reserve, will be undermined.

The financial dominance of the United States will decrease and its currency sharply, and the effectiveness of US financial sanctions will weaken, and perhaps fatally.

In short, the withdrawal from the International Monetary Fund will be an economic, financial and political error of giant dimensions.