Janet Yellen Expects Decline Of US Dollar As Global Reserve Currency
US Treasury Secretary Janet Yellen has expressed her expectation of a gradual decline in the status of the US dollar as a global reserve currency. Yellen’s comments come at a time when numerous countries, including members of the BRICS economic bloc, are actively pursuing de-dollarization efforts.
JUST IN: 🇺🇸 Treasury Secretary Yellen says to expect a slow decline in the US dollar as reserve currency.
— Watcher.Guru (@WatcherGuru) June 13, 2023
Changing Landscape
Previously, Yellen had asserted that the US dollar would continue to reign unchallenged as the premier reserve currency. However, recent developments appear to have altered her perspective on the matter. The global reserve currency status of the US dollar has been a prominent topic in recent months, with international trade increasingly moving away from reliance on the currency. Addressing the US House Financial Services Committee, Yellen added her voice to the discussion.
Yellen emphasized that a slow decline in the US dollar as a reserve currency should be expected, signaling a departure from her previous statements on the issue. In an interview with Reuters, she reiterated her confidence in the US dollar’s role as the primary global reserve currency, despite the de-dollarization efforts undertaken by countries such as China and Russia. Yellen acknowledged their attempts to establish alternative international trade mechanisms but noted the difficulties associated with such endeavors.
Treasury Oversight and IFIs’ Contribution
Yellen’s appearance before the Committee on Finance Services centered around treasury oversight and involved a testimony that shed light on the role of international financial institutions (IFIs) as part of broader economic and foreign policy strategies. She highlighted their contribution to fostering a more resilient global economy.
The slow decline of the US dollar as a reserve currency reflects the changing dynamics in the international financial landscape. As countries seek to diversify their currency holdings and reduce reliance on the US dollar, Yellen’s acknowledgment of this trend suggests an evolving understanding within the US government.
The future trajectory of the US dollar as a reserve currency remains uncertain, but Yellen’s remarks indicate a recognition of the shifting global dynamics and the need for adaptation in the face of changing circumstances.
