According to Janet Yellen, the prevalence of sanctions in the United States is contributing to de-dollarization, which is undermining its global leadership.
Janet Yellen, the Secretary of the Treasury of the United States, has attributed the prospective decline of the U.S. dollar to the United States themselves. While addressing the House of Financial Services Committee on Tuesday, she expressed her opinions.
Janet clarified that the dollar’s global reputation is being adversely affected by the United States’ frequent implementation of sanctions as a foreign policy instrument. In an effort to safeguard themselves from these sanctions, nations are abandoning the dollar.
According to her, this behavior is harming the dollar by creating adversaries. Many nations are currently participating in the campaign to incorporate alternative currencies into international trade. This is exerting additional pressure on the U.S. economy and devaluing the dollar.
Nations are wary of being subject to the United States’ dictates and are actively pursuing alternatives to the currency. Russia, China, and Hungary have all referred to the United States as an economic terrorist this year.
Janet emphasized in her testimony that these countries will continue to de-dollarize if the U.S. does not alter its approach. According to the Treasury Secretary,
The expanding relationship between Iran and Russia serves as a clear illustration of this. Mohammad Bagher Ghalibaf, the Speaker of the Iranian Parliament, has declared that all transactions between Iran and Russia are now conducted without the use of the dollar.
The same applies to all trade between India and Russia. Vladimir Putin is the primary force responsible for the removal of the United States and its currency.
Prime Minister Narendra Modi met with his friend, President Vladimir Putin. Ghalibaf clarified that the BRICS present a significant opportunity for nations seeking to transition from the dollar. He accused the United States of being unilateral, ruthless, and egotistical.
In the interim, Goldman Sachs has forecasted an economic decline in the United States. They are of the opinion that the BRICS will hold the first and second-largest economies in the world by 2075.
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