December 3, 2023

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Janet Yellen: Sanctions could hurt dollar’s dominance

US Treasury Secretary Janet Yellen has acknowledged that sanctions against countries like Russia could undermine the dollar’s dominance in the global economy.

The U.S. official acknowledged that imposing sanctions “creates a desire to find alternatives (in the exchange market) in China, Russia and Iran.”

“When we use financial sanctions, there is a risk that (sanctions) become tied to the dollar’s stock, which over time will undermine the dollar’s dominance,” Janet Yellen said in an interview with CNN. Sputnik website.

Nevertheless, the US Treasury Secretary considered sanctions a “useful tool” because he believed it would be difficult to create payment alternatives.

By the end of 2022, Russia had become the most sanctioned country by the United States and the European Union (EU), with more than 13,072 sanctions, ahead of countries such as Iran, with 4,069, and Syria, with 2,644.

Despite the sanctions, Moscow reported that its GDP fell by between 3% and 3.5% at the end of 2022, when Russia’s central bank’s forecasts estimate a contraction of between 8% and 10%.

Countries such as Brazil and China have recently backed the global economy by devaluing and betting on the use of local currencies.

France’s president, Emmanuel Macron, has said Europe needs to diversify its economies away from dependence on the dollar and, in this way, achieve “strategic autonomy” that would allow the continent to become a Third World superpower without the need for the United States. Cannon..

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