The U.S. dollar’s international status as the chief reserve currency is slowly diminishing as other countries diversify their assets, warns Treasury Secretary Janet Yellen.
During a Housing Financial Services Committee on June 13, multiple Republican and Democratic lawmakers lobbed questions surrounding the risk of the worldwide de-dollarization campaign that has accelerated over the past year.
Yellen insisted that while the greenback’s share of international reserves will gradually decline, no legitimate alternatives in today’s global marketplace could displace the dollar.
When asked by Rep. Warren Davidson (R-Ohio) if U.S. sanctions could threaten dollar supremacy in global transactions, Yellen conceded that these economic and financial penalties are contributing factors for the growing number of countries searching for dollar substitutes. At the same time, “no country is able to replicate” the dollar’s role in the global financial system. This, she noted, includes China….