The US Treasury Secretary said that Western sanctions could undermine the dominance of the dollar
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Janet Yellen also insisted that no country in the world other than the United States has “the institutional infrastructure that would allow its currency to serve the world” like the dollar.
Sputnik – More than a year after the United States and its allies slapped numerous economic sanctions on Russia over the escalating conflict in Ukraine, US Treasury Secretary Janet Yellen is saying the obvious that sanctions could threaten the dominance of the US dollar as the global reserve currency. .
In an interview with an American media outlet, she said, “There is a danger when we use financial sanctions linked to the role of the dollar, which over time could undermine the dominance of the dollar.”
However, Yellen stated that the US dollar “is used as a global currency for reasons that make it difficult for other countries to find an alternative with the same characteristics.”
It boasted that, apart from the United States, no other country in the world had the “essential institutional infrastructure that would allow its currency to serve the world” like the US dollar, and that sanctions remained a “critical tool”..
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During the interview, when asked if Russian assets in the United States, which were frozen after the launch of Russia’s own military operation in Ukraine in February 2022, could be earmarked for use in Ukrainian reconstruction, Yellen stated that Moscow “should pay for the damage” allegedly attached to Ukraine.
But she acknowledged that there are “legal restrictions on what we can do with the frozen Russian assets and we are discussing with our partners what might happen in the future.”
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