Slapping of sanctions against nations risk US dollar’s global dominance - US Treasury Secretary Janet Yellen claims

Washington – When the United States uses the dollar to carry out economic sanctions, the dominance of the dollar will be at risk in the international economy, claimed the US Treasury Secretary Janet Yellen. At this time, she also admitted that countries like China, Russia and Iran are looking for an alternative to the US dollar. In the last few decades, the US has used economic sanctions against many countries, including Iran, Russia, China, and North Korea. This policy of the United States has started to have repercussions at the international level. Many leading economists and analysts have also forecast that the dollar will soon lose its position as the reserve currency.

Last week, in an interview with CNN, the leading news channel in the United States, Finance Minister Yellen spoke about the state of the dollar and the US economy. Answering a question on the issue of sanctions imposed by the US, Yellen talked about the threat to the dollar. But at the same time, it was claimed that some important factors are responsible for maintaining the reserve currency position of the US dollar, which other countries do not have.

Strong capital markets and law enforcement in the US have been critical to the dollar’s survival as an international currency. These facilities and structures in the US are not found in any other country, Treasury Secretary Yellen explained. At the same time, Yellen also highlighted that economic sanctions imposed by the US administration are an important tool in terms of action.

Economists and analysts are constantly bringing to notice that many countries are moving away from the dollar due to the US’s use of the dollar as a weapon in economic and trade wars and the wrong decisions taken by the US administration regarding the dollar. Leading US economists recently claimed that the policy implemented after the financial crisis and recession of 2008-09 and the decisions taken after the corona pandemic of 2020 have reduced confidence in the dollar. Although the easy availability of currency like the dollar is a good thing, its decline cannot be stopped, and this process has started, US economist Peter C. Earle warned last week.

On the other hand, there have been indications that the process of introducing an independent currency is underway from the ‘BRICS’ group, which includes Brazil, Russia, India, China, and South Africa. A few weeks ago, senior Russian leaders had given indications in this regard. Then last week, Brazilian President Lula da Silva claimed that an important decision on the independent currency could be taken at the next BRICS meeting. China, part of the BRICS, has made strong moves to increase the use of its yuan currency. The use of the yuan in the France-UAE energy deal and the deal for the yuan with Brazil confirm this.

हिंदी मराठी