During her recent address to Congress, Janet Yellen, the U.S. Treasury Secretary, expressed the view that the U.S. dollar’s status as a reserve currency may experience a gradual decline. This statement comes at a time when numerous countries, including the BRICS economic bloc, are actively pursuing dedollarization efforts on the global stage.
In recent months, the status of the U.S. dollar as the global reserve currency has been a recurring topic of discussion. With international trade efforts aiming to reduce dependence on the dollar, its prominence has diminished. Consequently, a prominent figure in American finance addressed the issue during the recent U.S. House Financial Services Committee meeting.
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In contrast to previous remarks on the subject, U.S. Treasury Secretary Janet Yellen now suggests that we should anticipate a gradual decline in the U.S. dollar’s status as a reserve currency.
During an interview with Reuters, Janet Yellen reiterated her belief in the U.S. dollar’s status as the global reserve currency, expressing confidence in its continued prominence. This sentiment remains unchanged, despite dedollarization efforts undertaken by countries such as China and Russia.
However, Yellen acknowledge the attempts made by these nations to establish an alternative for international trade, but she thought it hard to envision their success.
Yellen’s presence before the Committee on Finance Services centered around a topic referred to as “treasury oversight,” as disclosed in the subsequently revealed testimony.
During her appearance, Yellen delved into the subject of international financial institutions (IFIs) and emphasized their significance as a component of the broader economic and foreign policy toolkit. Furthermore, she highlighted the role of these institutions in promoting a more resilient global economy.
