Navigating Global Financial System Fragmentation 2025

Past, present and future of the global financial system1 Historical developments since the 1970s have reinforced a unified global financial system with the US dollar at its centre, but current trends point towards a more multipolar and fragmented future. For the past half-century, the global financial system has continuously evolved in its role as the world economy’s major artery. Finance has driven global growth by increasing cross-border capital flows, enabling a more harmonized international regulatory environment and supporting rapid technological progress that improves the efficiency and reach of financial markets. Despite these gains, rising geopolitical tensions have changed the landscape in which today’s financial system operates, and these conditions necessitate a re-evaluation of the key pillars supporting the current system. Understanding the foundation of today’s system can help inform decision-making to safeguard it for the future. Navigating Global Financial System Fragmentation 9