Today, United States Treasury Secretary Janet Yellen stated that a slow decline of the US dollar as a reserve currency should be anticipated. In addition, the statements are made in the midst of international de-dollarization initiatives by a number of nations, including the BRICS economic bloc.
JUST IN: 🇺🇸 Treasury Secretary Yellen says to expect a slow decline in the US #dollar as reserve currency.
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Moreover, Yellen had previously stated her expectation that the US dollar’s status as the global reserve currency would remain unchallenged. However, it appears that recent events have changed her position on the issue.
Yellen Expects a Decline in Dollar as Reserve Currency
The US dollar’s role as the world’s main currency has been a big story for the past few months. In fact, as foreign trade has worked to de-dollarize it, the currency has become less common. Then, today, at a meeting of the US House Financial Services Committee, a well-known voice in American finance talked about it.
Janet Yellen says that people should expect the US dollar to slowly lose its status as a reserve currency. In particular, she said the opposite of what she stated last month about the matter.
Yellen said that she still believed in the US dollar. Specifically, the belief that it would still be the world’s primary currency. Even though countries like China and Russia have taken steps to de-dollarize it. Moreover, she said that she knew these countries were trying to come up with a different way to trade internationally, but that it was hard to see how they could work.
The topic of Yellen’s testimony before the Committee on Finance Services was “treasury oversight,” which has since become public. Furthermore, Yellen talked about international financial institutions (IFIs) and their role “as part of our broader economic and foreign policy toolkit.” She also said that these institutions are “fostering a more resilient global economy.”