The dedollarization movement led by the BRICS with the support of many other countries is gradually progressing. Is the dollar, whose dominance is already threatened, in danger of losing its status as the world’s reserve currency? Janet Yellen thinks there’s nothing to worry about. At least, for the United States Treasury Secretary, the dollar is a reserve currency that will be difficult to circumvent or relegate to the background.
Janet Yellen aware of the amplification of the dedollarization movement
Dedollarization is now at the heart of the debates and concerns many analysts. If for some, the hegemony of the dollar is really threatened, for others, there is nothing to worry about for the American currency. A currency that they consider unbeatable.
Janet Yellen, the US Treasury Secretary, also agrees and was clearly heard during his appearance before the Financial Services Committee of the United States Congress on June 13. The economist first confided in the current dedollarization movement to which many countries adhere. For her, it is “something” the United States should “simply expect”.
Janet Yellen says these countries’ plan to create an alternative reserve currency to the dollar is only motivated by their desire to evade US sanctions and avoid their effects. Confident, the Secretary of State for the American Treasury affirms that the task will not be easy for these countries which plan to turn away from the greenback.
The dollar, an irreplaceable reserve currency
According to Janet Yellen, the US currency plays a crucial and unprecedented role in the global financial system. “The dollar plays the role it plays in the global financial system for very good reasons that no other country is able to replicate, including China. And it is that we have deep, liquid and open financial markets, a strong rule of law and an absence of capital controls that no country is able to reproduce” hammered the Secretary of the Treasury of the United States .
While Janet Yellen asserts that finding an alternative reserve currency to the dollar will not be easy for any country, Jeremy Allaire believes that the threat of dedollarization is growing day by day and must be taken seriously. Recently, Circle’s CEO called on lawmakers to take strong action to uphold the primacy of the dollar.
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